At one quarter the length (328 pages vs. 1250), we might callthe new book "Stigum Light." This is not a bad thing. Many peopledon't have time to read the entire Stigum but can get through theshorter book in a few sittings. If someone has a job interview in acouple days and needs to learn about the money market fast,they are going to read Fabozzi, Mann and Choudhry.
The book achieves its relative brevity with only a modestsacrificing in depth of detail. Where it compromises is breadth.While Stigum devotes 400 pages to discussing the major playersbefore proceeding to discuss the instruments that are traded,Fabozzi, Mann and Choudhry focus primarily on the instruments.
Coverage is broad, including Treasuries, agencies, corporatedebt, financial institutions' debt, floaters, repos, short-term MBSand ABS, futures, FRA's, swaps, caps and floors. They also havenice chapters on asset-liability management and on bank capitalrequirements.
Whereas Stigum has very few formulas, Fabozzi, Mann and Choudhryis modestly more technical, detailing important pricing and yieldcalculations. These discussions are accompanied by Bloomberg screenshots that show the reader where the information is coming from. Asyou are reading, you can check the screen to see if an instrumentuses an actual/actual or actual/360 basis. You can grab the currentswap curve or check when a coupon is next paid. The screen shotsput the examples in context and give the reader a sense of beingthere on a trading floor.
So how should you choose between the two books? Do you want abook you can read in a week or a book you can read in a month? Doyou want a definitive text complete with historical insights andwonderful anecdotes, or do you want a practical shortcut? Do youwant a book that is mostly non-technical, or do you want one thatcovers essential formulas accompanied with Bloomberg screen shots? Do you want a book that covers all aspects of the money markets, ordo you want one that focuses primarily on the instruments? Both areavailable. What are you looking for? Riskbook.com