Saturday, 29 December 2012
Friday, 30 November 2012
here goes the link
This is a must read post with a lot of things you must be thinking of doing or have been already practising.. Don't forget about your passport, exam ticket, working calculator (with functioning batteries) and of course stationary.
Good Luck and all the best for the exam.
Thursday, 29 November 2012
I believe a lot of you have appeared in several mocks and you'd have identified your strongest areas. Starting the exam from the strongest area can boost up the confidence and can give you a winning sense.
For me time was never an issue in both level I exam and level II exam. Same is the case for most of the students but does that mean we should not bother about time management? I certainly doubt that. The exam is balanced in terms of difficulty level so try spending less time on questions which are straight away and try spending more questions which you find tricky.
Starting the exam from the area which you find difficult and think that with fresh mind you may cover that easily could be a winning strategy for a few but it can result drastically as if questions are left undone then while doing the other areas you could have 'evil thoughts' coming about that area.
Stay tuned for other tips they are on their way...
Sunday, 25 November 2012
Wednesday, 7 November 2012
Theoretically, according to the schedule which finquiz guys provided me, I should have done by fixed income and equity by now and start with alternative investments but I am way behind the theory. As I have got enrolled in the exam and my books are in the process of being shipped, based upon the analogy I drew, I think I'll start studying now. Particularly it is important in this case as I am not preparing from Schweser, but using the curriculum notes and the CFAI text, for examples and chapter end questions. I would say those who are planning to appear in 2013 and have started their preparations for level III they should get enrolled and not wait for the deadline to come close as CFAI text is necessary for preparations, I think, & biology of belief that since enrolment is done lets start preparing... that inner drive is necessary. It works for me really well.
Tuesday, 30 October 2012
Doing CFAI text examples along with chapter end questions is a must. Following a schedule while preparing for CFA Exams is inevitable in passing and I can certainly say FinQuiz curriculum notes provide you with an opportunity to follow a schedule, complete studies in time, be organized, consistent and can revise the syllabus multiple times before the exam.
Friday, 21 September 2012
- Such strategies assume that market expectations are correct.
- Portfolio is structured in a way to closely track the benchmark index.
- Portfolio manager deploying such strategies accept average risk and return level.
- Primarily rely on manager's forecasting abilities.
- Returns of the portfolio must increase if manager has superior forecasting skills.
- Pure bond indexing/Full replications approach
- Enhanced indexing by matching primary risk factor
- Enhanced indexing by small factor mismatches
- Active management by larger risk factor mismatches
- Full blown active management
Wednesday, 12 September 2012
Tuesday, 28 August 2012
Monday, 27 August 2012
Saturday, 18 August 2012
Wednesday, 15 August 2012
Tuesday, 14 August 2012
- Acquisitions: purchase of some portion of one company.
- Merger: absorption of one company by other.
- Statuary merger: acquirer acquires all target’s assets.
- Subsidiary merger: target becomes subsidiary after purchase.
- Consolidation: both cease to exist to become a new company.
- Target Company: one being acquired.
- Acquiring company: company acquiring target.
- Hostile transaction: potential business combinations without management & board’s consent.
- Friendly transaction: business combinations approved by management of both companies.
- Horizontal merger: merging companies in same kind of business.
- Vertical merger: companies at different position in same value chain.
- Backward integration: acquirer purchases target ahead of it in value chain.
- Forward integration: acquirer purchases target further down the value chain.
- Conglomerate merger: Acquires purchasing target unrelated to its core business.
Monday, 13 August 2012
|Effects On||↑discount rate||↓rate of compensation growth||↑Expected rate of return|
Friday, 10 August 2012
Thursday, 2 August 2012
PS: I have also mentioned several news items related to Fixed Income and Derivatives over this blog. You can check them through the labels.
Monday, 30 July 2012
- Readings have been reduced from 64 to 56
- Employee Compensation, Important FRA reading, has some revisions
- Economics has been revamped to three readings i.e. Currency Exchange Rate Determination & Forecasting, Economic Growth & Investment Decision, & Economic of Regulation
- A Note to Asset Valuation, Industry Analysis, & Valuation in Emerging Markets have been deleted in Equity
- Alternatives first two readings have been replaced with Private Real Estate Investments & Publicly Traded Real Estate Securities
- Fixed Income reading General Principles of Credit Analysis has been replaced with Fundamental of Credit Analysis
- Using Derivatives to Enhance Return & Manage Risk has been replaced with Credit Derivatives: An Overview.
- Two Portfolio Management Readings, A Note on Harry Markowitz’s Market Efficiency and International Asset Pricing, have been deleted.
- Corporate Finance, Quantitative Methods & Ethics are the same
Saturday, 28 July 2012
Thursday, 26 July 2012
Wednesday, 25 July 2012
Tuesday, 24 July 2012
I have passed Level II. Will post the details later. Thanks to all the people who supported during this journey... Passing in first attempt while living in this part of the globe and also securing above 70 in 8 areas our of 10 is certainly encouraging. Must appreciate my decision of trying FinQuiz Curriculum Notes, it turned out amazing.. Last but not the least thanks to the visitors of this blog...
Monday, 23 July 2012
Thursday, 5 July 2012
Sunday, 17 June 2012
Read the article: http://www.bloomberg.com/news/2012-06-15/microsoft-said-to-agree-to-acquire-yammer-for-1-2-billion.html
Monday, 11 June 2012
Friday, 8 June 2012
Thursday, 7 June 2012
Read the news: http://www.telegraph.co.uk/technology/apple/9317118/Apple-seeks-US-ban-on-Samsung-Galaxy-S3.html
Wednesday, 6 June 2012
|Trillion Won||1Q 2012||1Q 2011||4Q 2011||Change 1Q'11 to 1Q'12||Change 4Q'11 to 1Q'12|
|Other Operating P/L||0.21||0.15||0.70||40%||-70%|
|Equity Method G/L||0.37||0.38||0.32||-3%||16%|
Monday, 4 June 2012
Am I really scared of failing the exam?
Well Yes! It's a part of life.
Does that mean my all efforts will go in vain?
Certainly Not because of the knowledge & skills I've developed in this one year have paid off!
Will I appear again if I fail?
What are the chances of passing the exam?
Morning Session... 50/50, Evening Session 70/30
Am I excited about the result?
Good Luck to all the candidates (including myself) and best wishes for the result..
Tuesday, 29 May 2012
Monday, 28 May 2012
Friday, 4 May 2012
Friday, 27 April 2012
Good Luck for the Exam.
Tuesday, 24 April 2012
Tuesday, 17 April 2012
Good Luck for your exam!
Sunday, 15 April 2012
Thursday, 12 April 2012
Read the news item: http://www.independent.ie/business/irish/government-fights-to-keep-nama-debt-off-its-books-3078860.html
Wednesday, 11 April 2012
Tuesday, 10 April 2012
Monday, 9 April 2012
My Uncle also deals in selling the machines. One typical machine costs around 2.5 million PKR. The origin is China and he has developed significant credentials in this field. I was observing him while dealing with a potential customer. He was informing him that a 42 head stitch sequin machine is worth 2.9 million because it gives the option of being operated only on thread (without sequin - a start like element placed on clothes) through sequin and also act as a 21 head machine. Since the market trends keep on changing, the sequin is not in fashion through out the year but in some months, installing this machine provides the option of managing both the seasons and with high volumes of production and less. While listening to what he was saying, my mind immediately went to the topic of Real Options in Corporate Finance. I was wondering about the flexibility option of the machine which apparently worth 4 hundred thousand. While calculating the NPV of the project incorporating the effect and value of this real option will generate a more realistic result and can aid in analysis. The beauty is the connection which developed immediately in my mind regarding the topic and I was able to recall and connect what I had learnt with something happening in front of my eyes. Believe me my uncle and the buyer would have no idea of the analytical aspects connected with this option. For them it would have been something which must happen like this but at that time, my mind had started processing about calculating the NPV of that project and incorporating the value and cost of this option. I was wondering that is how this course develops skills and knowledge. Its not necessary that we need to be at the right place to apply this knowledge but in business transactions happening in front of use, this knowledge is pretty helpful!
Sunday, 8 April 2012
FC:DC = xxDC
This one is a direct quote for a domestic investor in foreign currency
DC = AUD
FC = USD
USD:AUD = 1.003 AUD
This is a direct quote for an AUD investor in USD
DC:FC = xxFC
This one is an indirect quote for a domestic investor in foreign currency.
DC = AUD
FC = USD
AUD:USD = 0.997 USD
This one is an indirect quote for an Australian Investor in USD
Note: Direct & Indirect quotes are reciprocal of each other.
Direct = 1.003
Indirect = 1/1.003 = 0.997
Friday, 6 April 2012
For instance you want to calculate AUD:PKR and you have US:AUD and US:PKR the expression would be
AUD:PKR = AUD:US x US:PK
It can also be written as
AUD/PKR = AUD/US x US/PKR
We have been given with US:AUD and we require AUD:US so inverse that and then multiply it with US:PKR to get AUD:PKR
It becomes quite simple and easy to remember using the algebraic expressions. Easy to remember and easy to apply!
Wednesday, 4 April 2012
Read the news: http://www.bloomberg.com/news/2012-03-21/top-junk-pummels-treasuries-for-safest-profits-riskless-return.html
Tuesday, 3 April 2012
Credit enhancement occurs when a security’s credit quality is raised above that of the sponsor’s unsecured debt or that of the underlying asset pool. Credit enhancement levels are determined relative to a specific rating desired by the issuer for a security by each rating agency. There are two general types of credit enhancement
1. External Credit Enhancements:
a) Third-Party or Parental Guarantees (Bond issuance): A third party e.g. an insurer, or the parent company
of the seller/servicer promises to cover losses that may arise on non-performance of the collateral up to a stated maximum dollar amount. Unlike municipal bond insurance which guarantees the entire principal amount, the guarantee in a securitization is only for a percentage of the par value at origination. For example, a $100 million securitization may have only $5 million guaranteed by the monoline insurer.
b) Letter of Credit (LOC): In this case a financial institution, typically a bank, is paid a fee to reimburse the trust for any losses actually incurred, up to the required credit-enhancement amount.
c) Corporate guarantees: Usually provided by the issuer of the ABS or its parent company.
Letter of credit from a bank and a guarantee by the seller of the assets are two less common forms of credit
enhancement because of the “weak link approach” employed by rating agencies. According to this approach, if an issuer seeks a triple A rating for one of the bond classes in the structure, it would be unlikely to be awarded such a rating if the external credit enhancer has a rating that is less than triple A. External credit enhancement exposes the investor to “third-party risk,” where the ABS rating will be dependent on the creditworthiness of the institution.
Read the news: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10796416
Monday, 2 April 2012
Read the news: http://economictimes.indiatimes.com/features/investors-guide/financial-reporting-system-undergoing-a-change-in-us/articleshow/12492739.cms
Friday, 30 March 2012
Read here: http://www.businessweek.com/news/2012-03-08/corporate-bond-risk-falls-in-europe-credit-default-swaps-show
Thursday, 29 March 2012
1) Originator: The initial owner of the asset (also known as sponsor or seller) who has a loan agreement with the borrowers;
2) SPV: The issuer/trust also known as the SPV is the entity, which would typically buy the assets (to be securitized) from the Originator. The structure keeps the SPV away from bankruptcy of the originator, technically called ‘bankruptcy remote’;
3) Servicer: The servicer is usually the originator, who collects payments due on the underlying assets and, after retaining a servicing fee, pays them over to the security holders;
4) The Investors: The investors may be in the form of individuals or institutional investors like mutual funds, pension funds, insurance companies, etc. They buy a participating interest in the total pool of
receivables and receive their payment in the form of interest and principal as per agreed pattern.
5) The investment bankers: Who assist in structuring the transaction and who underwrite or place the
securities for a fee;
6) The rating agencies: The rating agencies assess credit quality of certain types of instruments and
assign a credit rating;
7) Agent and Trustee: It accepts the responsibility for overseeing that all the parties to the securitization deal perform in accordance with the securitization trust agreement. Basically, it is appointed to look after the interest of the investors.
Read the post: http://online.wsj.com/article/BT-CO-20120328-717279.html
Wednesday, 28 March 2012
News Pick - (Reuters) - U.S. bond funds designed to fight inflation have relaxed their guard against rising interest rates, leaving investors vulnerable to heavy losses
Read the news: http://www.reuters.com/article/2012/03/15/funds-inflation-idUSL2E8EDJ1B20120315
Tuesday, 27 March 2012
Joint ventures can be organized in the following forms:
· Other Legal forms i.e. Unincorporated associations
Under IFRS Both Proportionate consolidation method and Equity method can be used. However, Proportionate consolidation method is preferred. In Proportionate Consolidation Method Venturer’s share of the assets, liabilities, income and expenses of the Joint venture is combined on a line-by-line basis with similar items on the venturer’s financial statements & No Minority interest is necessary to be reported.
Under U.S. GAAP · Only Equity method is allowed to use. Proportionate consolidation method can be used
only for unincorporated entities operating in certain industries.
Relative to Proportionate consolidation method, Equity Method results in:
· Net Profit Margin being high
· ROA being high
· D/E Ratio being low
· Total income and total net assets of the investor are identical under both Equity and Proportionate consolidation method.
Monday, 26 March 2012
|Luxembourg||$ 105,437.67||$ 104,353.69||$ 118,218.78|
|Norway||$ 84,538.24||$ 76,763.74||$ 93,366.81|
|Switzerland||$ 67,463.71||$ 63,568.24||$ 65,799.80|
|Denmark||$ 55,890.68||$ 55,933.35||$ 62,156.99|
|Macao SAR, China||$ 51,429.89||$ 40,105.21||$ 39,924.25|
|Sweden||$ 48,935.67||$ 43,471.68||$ 52,730.78|
|United States||$ 47,198.50||$ 45,758.10||$ 46,971.33|
|Ireland||$ 47,170.20||$ 49,737.93||$ 59,573.37|
|North America||$ 47,111.43||$ 45,160.91||$ 46,796.80|
|Netherlands||$ 46,914.66||$ 47,998.27||$ 52,951.03|
|Canada||$ 46,235.64||$ 39,643.79||$ 45,110.04|
|Austria||$ 45,209.40||$ 45,638.09||$ 49,679.42|
|Finland||$ 44,512.01||$ 45,084.64||$ 51,181.25|
|Belgium||$ 43,144.34||$ 43,799.18||$ 47,340.95|
|Japan||$ 42,831.05||$ 39,456.44||$ 38,212.27|
|Singapore||$ 41,122.19||$ 37,789.61||$ 36,738.45|
|Germany||$ 40,152.22||$ 40,275.25||$ 44,132.04|
|United Arab Emirates||$ 39,624.70||$ 38,959.81||$ 50,727.21|
|Iceland||$ 39,616.84||$ 38,032.66||$ 53,087.53|
|High income: OECD||$ 39,521.08||$ 38,299.77||$ 40,899.12|
|France||$ 39,459.55||$ 40,663.05||$ 44,117.04|
|High income||$ 38,208.22||$ 36,963.49||$ 39,661.98|
|Euro area||$ 36,618.19||$ 37,503.33||$ 41,073.18|
|United Kingdom||$ 36,143.94||$ 35,163.41||$ 43,286.04|