• Commodities and Commodity Derivatives
  By Helyette Geman. Wiley, 2005. First half of book contains a mainly theoretical treatment of commodity spot and forward prices and commodity option pricing. Second half of book contains useful chapters on underlying markets such as oil, natural gas, and electricity. The book is oriented mainly toward exchange-traded derivatives (futures), with little explicit coverage of issues associated with over-the-counter commodity derivatives.

• Energy Risk: Valuing and Managing Energy Derivatives
  By Dragana Pilipovic. McGraw-Hill, 1998. Primarily aimed at quants, the book is a technical analysis of how the behavior of energy prices causes energy derivatives to behave differently from interest rate or equity derivatives.

Derivatives documentation and collateral management

• Derivatives Law and Practice
  By Simon Firth, Sweet & Maxwell 2005. This book provides a comprehensive legal and regulatory guide in looseleaf format to the spectrum of derivative instruments and their associated documentation. In addition, it covers issues such as taxation, related litigation and regulatory capital treatment of derivatives, and is updated every six months to remain abreast of new developments. A strong practical emphasis is maintained with guidance on the main techniques.
  

• Documentation for Derivatives
  By Anthony C. Gooch and Linda B. Klein, Euromoney, 2002. The fourth edition updates the 1993 edition and reflects the most recent developments on derivatives documentation. Volume 1 explores the main legal issues relating to derivatives and examines U.S. commodities and securities laws. Volume 2 presents a detailed examination of the ISDA Master Agreements and Credit Support Documentation, as well as offering material on cross-product risk management.

• Mastering the ISDA Master Agreements (1992 and 2002): A Practical Guide for Negotiation
  By Paul C. Harding, Financial Times -Prentice Hall 2003. This book updates the same author's Mastering the ISDA Master Agreement published in 2001 and offers detailed and practical guidance on negotiating both the 1992 and 2002 ISDA Master Agreements. It provides new entrants to derivatives documentation with practical negotiation information. There are concise summaries of each section of the Agreement and examples of schedule elements for special entities. There are also chapters devoted to legal, credit and operational issues.

• A Practical Guide to the 2003 ISDA Credit Derivatives Definitions
  By Paul C. Harding, Euromoney Books 2004. This book provides a user-friendly guide to the 2003 ISDA Credit Derivatives Definitions for both market practitioners and those new to credit derivatives documentation. It has section-by-section commentary on the Definitions and chapters on the main credit derivatives products and risks associated with them, legal issues and recent developments in credit derivatives documentation.

• The Law on Financial Derivatives
  By Alastair Hudson, Sweet & Maxwell, 2002. The third edition presents analysis of the law relating to the use of financial derivatives and examines other areas of law, such as contract, tort, and trusts, which relate to financial derivatives.

• The Guide to Using and Negotiating OTC Derivatives Documentation
  By Christian A. Johnson, 2005, Institutional Investor Books. This book offers an informational overview on the preparation of the ISDA Master Agreement and examines the critical provisions of both the 1992 and the 2002 Master Agreement, such as Sections 5 and 6, in greater detail. The book also examines key collateral and international tax withholding issues.

• Mastering Collateral Management and Documentation
  By Paul C. Harding and Christian A. Johnson, FT/Prentice Hall, 2002. Provides a detailed introduction to collateral management and documentation. Offers practical guidance on ISDA Credit Support Documentation and describes, through screen-based examples, the collateral management process.

• Collateral
  By Richard Potok. Butterworths, 2002. Provides detailed information on conflict of laws issues relating to indirectly held securities and examines jurisdictional approaches and, in some cases, deficiencies, in 24 jurisdictions.

Risk management

• Risk Management
  By Michel Crouhy, Dan Galai and Robert Mark. McGraw-Hill, 2000. Encyclopedic description of risk management issues, including policy, methodology, technological infrastructure, data, and investment and hedging strategies.

• Managing Derivative Risks
  By Lillian Chew. Wiley, 1996. Dissects risk management problems from the 1990s (Barings, Metallgesellschaft, and Orange County) and describes risks managed by swaps dealers. Highly recommended treatment of basis risks and risks associated with options.

• Value at Risk
  By Philippe Jorion. 2d edition. McGraw-Hill, 2001. Comprehensive description of methodological and implementation issues surrounding Value at Risk

• Quantitative Finance
  By Paul Wilmott. Wiley, 2000. A guide to pricing and risk management for the usual (and less usual) types of derivatives. Clear, easy to follow presentation. Not too heavy on the quantitative side.

• Risk Management: A History
  Risk books, 2003. Contains chapters describing the major historical developments in the derivatives industry and financial risk management. In addition, it features articles by some of the leading contributors to the financial theories underlying risk management. Published in celebration of the 15th anniversary of Risk magazine.

• Market Models
  By Carol Alexander. ISMA Centre, 2001. A complete description of financial models used by risk managers to measure market risk.

• Dynamic Hedging
  By Nassim Taleb. Wiley, 1997. Controversial, opinionated effort by an experienced and knowledgeable trader to bridge gap between options theory and practice. The author is well known for his skepticism regarding how Value at Risk and other quantitative tools perform in real world markets. Advanced book, not aimed at beginners.

• The Risk Management Process
  By Christopher Culp. Wiley, 2001. Not primarily a book on risk measurement, although it does contain chapters on the subject. Instead, it shows the role risk management can play in corporate finance and strategy. Intended audience is senior management and directors interested in a 'big picture' view of the role of risk management.

Credit risk measurement and management

• Credit Portfolio Management
  By Charles W. Smithson. Wiley, 2003. Accessible description of state of the art in credit risk management. Includes chapters describing credit portfolio modeling, data requirements, credit derivatives and securitization, and economic capital allocation.

• Internal Credit Risk Models
  By Michael K. Ong. Risk Books, 1999. Describes capital regulation and credit risk modeling. Includes chapters on each element of credit modeling, including probability of default, expected and unexpected loss, portfolio effects, and so on. Begins with an interesting account of the inadequacies of the 1988 Basel Capital Accord and the resulting distortions.

• Managing Bank Capital
  By Chris Matten. 2d edition. Wiley, 2000. Analyses bank capital from the point of view of the treasurer, regulator, risk manager, and shareholder. Focuses more on techniques than on theory. Includes discussions of risk-adjusted performance measurement, capital allocation, and economic profit measurement.

• Credit Risk Management
  By John B. Caouette, Edward I. Altman, and Paul Narayanan. Wiley, 1998. Describes tools and techniques available for managing credit risk, spanning both classical credit analysis and modern quantitative finance. The book gives an overview of the wide range of models available, both for retail and large credits. A notable contribution is the discussion of the practical challenges of modeling credit risk, including data availability and measurement problems.

• Credit Risk Measurement
  By Anthony Saunders. Wiley, 1999. Introduction to alternative methods for modeling credit risk.

• Credit: The Complete Guide to Pricing, Hedging and Risk Management
  By Angelo Arvanitis and Jon Gregory. Risk Books, 2001. Provides a comprehensive description of credit risk measurement, pricing, hedging, and risk management.

• Improving Counterparty Risk Management Practices
  Counterparty Risk Management Policy Group, 1999. The objective of this report, which was developed by a committee of market practitioners in the wake of the 1998 market disruptions, discusses counterparty credit risk and market risk management practices and how they can be enhanced. The report pays particular attention to hedge funds, and covers four subject areas: transparency and counterparty credit assessments; risk measurement, management, and reporting; market practices and conventions; and regulatory reporting. Of particular interest to risk managers are two of the appendices, one on liquidity risk and leverage, the other on counterparty credit exposure estimation. The complete report can be downloaded here. Appendices to the report are available here. An updated version, CRMPG II, can be downloaded by clicking here.

Public policy issues

• Corporate Aftershock: The Public Policy Lessons from the Collapse of Enron and Other Major Corporations
  Edited by Christopher L. Culp and William A. Niskanen. Wiley, 2003. A public policy analysis of the implications of the Enron failure, with the stated objective of discouraging regulatory and legislative overreaction. Includes chapters on corporate governance, derivatives regulation, accounting and disclosure, structured finance, energy trading, and credit risk management.

The Bibliography of Educational Resources is by no means exhaustive: the books on the list are drawn from those that have been consulted by or are known to members of the ISDA staff.

ISDA will only post descriptions of books that have been reviewed by ISDA staff. No endorsement by ISDA is meant or implied in the suggestions. Absence of a book from the above list should not be interpreted as a negative comment.

Because of the wide range of books available and coming to market, we suggest that interested readers consult such sources as libraries, financial publishers and the Internet for information on the hundreds of additional titles that are available.