Liar’s Poker is a very interesting book. It is a story of the bond trading business in the ‘80s, as narrated by someone working in Salamon Brothers those days. I personally knew very little about the debt markets and bond trading, so it was very educational as well as amusing.
You can learn a lot about traders and salesmen, action on the trading floor, how excruciatingly painful it is to join these firms, and all the more painful to continue your job, et al. There is also lot of information on the evolution of the mortgage bonds. Also, interestingly, there is a sense of arrogance in the way the bond traders disparagingly described their co-workers in corporate finance / investment banking. I always thought investment banking was the “sexier” job.
The narration itself has a no-non-sense, in-your-face, brutally blunt, unapologetic approach that is so refreshing to read. The author clearly states how the business clearly respects what makes business sense for the firm, irrespective of how bad it can be for their clients. Some of the excesses narrated are simply unbelievable. 26~28 year-olds getting a-million $ per year-assured-for 3 years-plus-bonus-contract-from-Merrill-Lynch just sounds too crazy (that too in the ‘80s; you know the inflation – so do the math).
Overall, a great read – right from the starting example of “liar’s poker” (read the book…I would rather not explain it here) till the blood, sweat and dollar soaked end.