I am just starting out as a rates and derivatives trader.

Can someone please recommend some books for trading USD interest rate swaps (including risk management)?

Any additional guidance would be deeply appreciated!

  • 5
    $\begingroup$ It is hard to believe you are in a rates derivative trader position with no prior knowledge of IR swaps. Sorry that does not address your question however your statement does not make sense to me given my industry experience... if that is the case you should start by reading the Hull and certainly your boss should give you some advice too instead of leaving you to get help from SE! $\endgroup$
    – Ezy
    Dec 27, 2018 at 4:15
  • $\begingroup$ Like I said i'm in an entry level position recruited from Uni. Yes, I know the basics of IR swaps, but the factors that drive these rates such as inflation, rate hike expectations, risk-on/off sentiment is what I am really looking to read more on in order to trade on a daily basis. And my boss has given me a basic overview, but his methodology is see and enter the markets and understand - which I already do, but I just wanted some legit reading material on it (including stuff like spread trades, carry trades etc.). Thanks for your inputs anyway! $\endgroup$
    – A93
    Dec 27, 2018 at 13:57
  • 1
    $\begingroup$ @Ezy I found it very funny cuz I thought the same thing (hard to believe!) about some traders I worked with $\endgroup$
    – numerairX
    Dec 27, 2018 at 14:23

1 Answer 1


There are 3 main books:

Hulls: Options Futures and Other Derivatives - This is a generalist introduction. It doesn't have a rates focus and less a focus on trading or risk management or interest rate swaps. But you should read it and own it anyway. Everyone in finance is basically expected to know this.

Corb - Interest Rate Swaps and Other Derivatives - To be honest I dont like this, it has minimal swaps info and most is focused on volatility and exotic products that no one trades anymore.

Darbyshire - Pricing and Trading Interest Rate Derivatives - Written by an ex-Barclays IRS trader who helped develop their curves and risk management processes after the 07 crisis so gives an overview of CSAs and multi-currency effects, and how their risk management systems worked. This seems to be what you are after.

All are available on Amazon


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