For anyone who is new to asset-liability management (ALM)—or for anyone who knows some of the pieces but would like to understand ALM as a unified whole—this is an outstanding book. Assuming only passing familiarity with bank management, it walks readers through all aspects of ALM—Capital management, transfer pricing, loan pricing, credit risk, interest rate risk, securitization, liquidity.

It is a short book structured as a series of seventeen lessons. It is very accessible, and some might think it simplistic. What I really like about it is the way it lets readers see the forest for the trees. Even experienced practitioners will appreciate how the authors have tied together the various elements that are collectively called ALM and shown how they work together as a unified whole. In this respect, the book is anything but simplistic. It is sophisticated.

Where the book is not as strong is details. While you are coming to see the entire forest, some trees may be missed. There are plenty of worked numerical examples, but often just one case is illustrated or complexities are not explored. In one example, there is some confusion about the distinction between funding a business line, on the one hand, and setting aside capital to support that business line, on the other.