Blackrock's Guide to Fixed-Income Risk Management - Hardcover

by Bennett W. Golub (Editor), Blackrock Inc (Author)

An irreplaceable roadmap to modern risk management from renowned experts on the subject

Edited by a co-founder and the former Chief Risk Officer of BlackRock--the world's largest asset manager--BlackRock's Guide to Fixed-Income Risk Management delivers an insightful blueprint to the implementation of a comprehensive investment risk management framework for buy-side firms. Leveraging the unprecedented academic and professional experience of current and former senior leaders in BlackRock's risk and portfolio management functions, as well as trading, financial modeling, and analytics experts, the book serves a practitioner's guide to investment risk management, leveraging BlackRock's risk management framework. The included chapters combine to provide chief investment officers, risk managers, portfolio managers, researchers, and compliance professionals an approach to investment risk management well-suited for today's and tomorrow's markets. The book also presents:

• Critical elements that underpin a strong risk management program and culture
• Fixed income risk management concepts and theories that can be applied to other asset classes
• Lessons learned from financial crises and the COVID-19 Pandemic

Ideal for undergraduate students and students and scholars of business, finance, and risk management, BlackRock's Guide to Fixed-Income Risk Management is a one-of-a-kind combination of modern theory with proven, practical risk management strategies.

Front Jacket

In BlackRock's Guide to Fixed-Income Risk Management, Senior Advisor, former Chief Risk Officer and one of the eight co-founders of BlackRock, Bennett W. Golub, delivers an incisive and practical resource for implementing effective investment risk management techniques for buy-side firms. In the book, the reader can explore various risk management approaches, practices, analytics, and tools used to mitigate and manage the significant risks present in fixed-income portfolios. While the book primarily focuses on fixed-income analytics and models, many of the concepts can also be applied in a multi-asset context.

Each chapter is authored by current or former senior BlackRock leaders with subject matter expertise ranging from portfolio management to trading, financial modeling, analytics, public policy, and risk management. The chapters offer unique insights into BlackRock's powerful risk management framework and approach, including examples that highlight the principles discussed, along with forward looking views into investment risk management.

Additionally, the book presents some of the changes that have helped to modernize fixed-income markets over the last twenty years as it considers the past, present, and future of effective risk management in the industry. It also insightfully identifies lessons learned from financial crises and provides a discussion about the impact and repercussions of the Coronavirus pandemic.

Perfect for Chief Investment Officers, portfolio managers, risk managers, traders, and researchers, BlackRock's Guide to Fixed-Income Risk Management will become a reliable and engaging desk companion for those seeking hands-on guidance for buy-side firms. It will also earn a place in the libraries of undergraduate, MBA, and PhD students studying finance and related subjects.

Back Jacket

Praise for
BlackRock's Guide to Fixed-Income Risk Management

"This book is a greatly revised and expanded version of the classic 2000 book Risk Management: Approaches for Fixed Income Markets by Golub and Tilman. The vast experiences of Golub and his 46 colleagues have shaped this agenda so that it is both precise and practical. It discusses how the markets have evolved and what managers have done as a result. If you ever wondered how risk management is actually done by a big, decentralized investment manager today, read this book."
--Robert F. Engle, Co-director of the Volatility and Risk Institute at NYU Stern; 2003 Nobel Laureate in Economics

"Portfolio managers seek to add value through active risk taking. Rigorous and comprehensive risk analytics permits risk taking to be both appropriate and precisely focused. In this book, the tools and techniques required to make this possible for fixed-income portfolios are described in detail."
--Rick Rieder, Chief Investment Officer of Global Fixed Income, BlackRock

"Edited and mostly authored by the founding Chief Risk Officer of one of the largest and most successful fixed-income asset managers in the world, this volume should be required reading for all investors, risk managers, and central bankers. With topics ranging from yield curve dynamics to liquidity risk management to the modeling of geopolitical risk to lessons from the COVID-19 pandemic, this volume has something for everyone."
--Andrew W. Lo, Charles E. and Susan T. Harris Professor of Finance, MIT Sloan School of Management

"This book is based on the extensive experience and know-how accumulated over more than three decades by Ben Golub, as a risk management leader at BlackRock. The book also benefited from the vast experience of BlackRock professionals with expertise in investment risk management. The reader will learn about the dynamic nature of risk in changing economic and technical environments. This book is a significant and important contribution to our knowledge in managing risks at asset management firms and other financial institutions."
--Dan Galai, Professor Emeritus, The Hebrew University of Jerusalem; co-author of The Essentials of Risk Management, Third Edition

"Risk management is key to the success of any financial institution. The world-leading contributors to this book describe in a practice-driven way how to build and implement a solid risk management foundation for fixed-income products. The expertise and professional success of the writers makes the book not only unique among financial literature, but an essential read and reference for risk managers and financial practitioners within or outside the financial services industry."
--Richard Apostolik, President and CEO, Global Association of Risk Professionals

Author Biography

Bennett W. Golub is one of the original founders of BlackRock. During his 34-year career at BlackRock, Dr. Golub was a member of BlackRock's Global Executive Committee, co-head of its Risk & Quantitative Analysis group and served as BlackRock's Chief Risk Officer from 2009--2022. Additionally, he co-founded BlackRock Solutions. Currently, Dr. Golub serves as a Senior Advisor to BlackRock.