
Traders, guns & money
knowns and unknowns in the dazzling world of derivatives
by Satyajit Das · first published 2006
9mentions
8recommended by
8HN commenters
2007–2020first – last mentioned
100% recommend
Why HN recommends it
An insider account of derivatives and the sales and trading side of investment banking, with useful sections on credit default swaps. It is a lively read for anyone curious about how these markets work.
Summarised by Claude from recommending comments
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Options, Futures, and Other Derivatives by John Hull Principles of Corporate Finance by Richard Brealey, Stewart Myers, Franklin Allen Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives by Satyajit Das
on “Ask HN: What are the must-read books about economics/finance?” ↗…that, but the 1980s was when it became a buzzword). A great read if you're interested in learning more about the history and operating procedures of the sales & trading side of investment banking is Traders, Guns and Money by Satyajit Das. Its sections on credit default swaps and collateralized debt obligations are particularly interesting when you consider that they were written in 2006, pre-crisis (around the same time…
on “The Book of Graham” ↗Traders, Guns and Money - Satyajit Das Debunking Economics - Steve Keen The Volatility Machine - Michael Pettis
on “Ask HN: What are the must-read books about economics/finance?” ↗Traders, Guns and Money: Knowns and Unknowns in the Dazzling World of Derivatives by Satyajit Das
on “Ask HN: Book recommendations for understanding financial systems?” ↗…misinformed. Some of the most informed critiques I have read about this stuff are the following books: "A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation" by Bookstaber "Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives" by Das And Nasim Taleb's work. ------- More to the point, the author is explaining something very basic (which journalists don't seem to understand): -Algorithmic…
on “Algorithmic Trading is Not High Frequency Trading” ↗…and putting my energy into fields where I have a hope of understand the play properly and being competitive. If you're even vaguely interested in derivative investments I strongly recommend reading _Traders, Guns and Money_ (by Das). It's a good sequence of pirate stories. He also picked sub-prime well before it happened.
on “Startup Idea: Fight Evil” ↗…of these concepts go back a long way - stock practices that developed through trading stock of the dutch east india company. For this reason, I'd recommend Niall Ferguson, _The Ascent of Money_. Das _Traders, Guns and Money_ is a good read. I couldn't follow all of it when I read it, but found it to be good for feel. There's a late 20th century writer John Kenneth Galbraith who wrote some good histories. I like _the end…
on “Facebook Derivatives: Wall Street Goes Rogue-er” ↗Two of my faves, Random Walk & Trading & Exchanges, have been mentioned by several others, so I won't comment further. Some other books I've enjoyed have been Lewis: Liar's Poker, Das: Traders, Guns & Money, Niederhoffer: Education of a Speculator, Partnoy: FIASCO and Kinderhoffer: Manias, Panics & Crashes. And Taleb: Fooled by Randomness.
on “Ask HN: How did you learn about stocks and the market?” ↗They hacked the ratings system. There were pension funds who saw AAA rated garbage with apparently high returns and thought "woohoo!" Theres a really book called traders, guns and money that goes into the details on this. When the government started going after the ratings companies they downgraded US bonds (as if the US would ever default...)
on “Matt Levine makes sense of Wall Street like none other” ↗