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Papers


This pages lists various papers that we find interesting and/or are historically relevant. We do this for fun and it is free of charge. If you found anything here entertaining or useful then please consider supporting our caffeine habit.


Lehman Brothers Foreign Exchange Training Manual

This classic document covers spot transactions, forwards, swaps, and options. Designed for traders, it includes practical examples, calculations, and scenarios that illustrate how to manage positions and understand market conventions. While some operational aspects (e.g., manually filled paper order tickets) are out-of-date we consider these to be some of the highlights of the manual.


Salomon Brothers Series: Understanding the Yield Curve

The Salomon Brothers' "Understanding the Yield Curve" series (1995) remains influential in fixed-income markets for introducing sophisticated yield curve analysis concepts to practitioners. The series popularized key concepts like forward rate analysis, duration extension strategies, and convexity bias among institutional investors and portfolio managers. Its clear explanation of complex fixed-income mathematics helped establish modern yield curve trading and relative value frameworks still used today.

  • Part 1: Overview of Forward Rate Analysis
  • Part 2: Market's Rate Expectations and Forward Rates
  • Part 3: Does Duration Extension Enhance Long-Term Expected Returns?
  • Part 4: Forecasting US Bond Returns
  • Part 5: Convexity Bias and the Yield Curve
  • Part 6: A Framework for Analyzing Yield Curve Trades
  • Part 7: The Dynamics of the Shape of the Yield Curve