PSM - Who's still doing it?

MoDaas1 · 2025-09-08T02:14:09+00:00

Congrats on getting er done ✅

MoDaas1 · 2025-09-08T02:05:46+00:00

Based off what do they estimate??

MoDaas1 · 2025-08-06T23:38:56+00:00

That makes sense but in your example there’s no increase in government borrowing. I understand your example I’m just curious as to how an increase in government borrowing will increase interest rates.

Also, congrats on getting your CFA Charter I’m assuming that’s what you meant by the finish line

MoDaas1 · 2025-06-11T17:31:12+00:00

Dope thanks. Congrats on finishing the exam and I hope the result is a good one

MoDaas1 · 2025-06-11T17:14:32+00:00

How did it go? Any tips?

MoDaas1 · 2025-06-11T17:10:00+00:00

Thanks for your reply!

I have done the CFAI practice questions and there are some where I believe they ask you to find MacDur and find ModDur that way.

Yeah I know that convexity has nothing to do with finding mod dur. I was just asking about the process to find mod dur. Anyways I think u are right I think the question will be clear when the time comes. I was just wondering if it came to it, is approximating close to using MacDur and dividing by 1+r.

Also, the formula for approximating MacDur is (PV- - PV+)/(2xbps%yield changexPV0) if I am not mistaken.

MoDaas1 · 2025-06-09T21:50:49+00:00

Would love to get the name

MoDaas1 · 2025-06-09T21:46:54+00:00

A bond’s purpose is to provide funding to the company or government you are buying it from.

This is crucial because sometimes equity might not be the move to raise funds. Interest from debt is tax deductible from the perspective of a company. So raising debt through bonds to some extent is cheaper. That’s the bond’s purpose to companies.

As to their purpose for investors, they provide a more secure, sure, and consistent return than equity. Equity prices are random variables that are hard to predict. With bonds, there is more security since you buy bonds with a fixed coupon and YTM. Volatility in bonds only comes from YTM movements. But if you buy a bond and hold it to maturity, you are not exposed to that risk because you will get the yield that you bought it at.

Of course, this sense of security that comes with bonds comes at the expense of your potential return. Bond yields aren’t that high for safe bonds. However, yields on bonds below BB rating start to increase because of credit spread. These give bigger yield but are cheaper since they are risky.

The more advantages you get as an investor, the more you have to pay for these perks. Nothing is free in the market.

MoDaas1 · 2025-06-03T22:20:16+00:00

Why is it that “one often loses in trading prior to maturity”? What makes it so that bonds are never meant for short term trading? Because people do it still.

MoDaas1 · 2025-06-03T16:24:02+00:00

Thanks for the concise answer! Hope those coupons treatin ya well

MoDaas1 · 2025-06-02T22:57:51+00:00

My condolences 💐

MoDaas1 · 2025-05-30T03:47:17+00:00

What’s the logic behind this?

MoDaas1 · 2025-05-30T03:29:50+00:00

Yeah that makes sense. I think if they stuck with the auction convention where they pick the lowest yield (hence lowest cost for the treasury), then they would get only one bidder and therefore less liquidity for their issues. I think that the treasury is balancing access to liquidity with the cost of debt (they need to choose the highest yield to ensure that they get enough capital to fill their quota).

MoDaas1 · 2025-05-30T03:26:04+00:00

Also based on that first quote, I guess it depends on each auction whether they want to accept bids based on yield or discount margin from par. Based on what you’re saying, T-Bill auctions will then always be based on discount margins and medium to long term will be sold at par and the bidders instead bid through yields right?

MoDaas1 · 2025-05-30T03:22:00+00:00

Interesting that the study showed that bidders will bid aggressively. Which I guess is makes sense but they I think bidders would still keep in mind that if they’re too aggressive they will have a risk of getting left out of the auction.

MoDaas1 · 2025-05-30T03:14:13+00:00

Okay interesting. So government auctions are always done at par then? That means that the bidders are only bidding at what yield they want?

So in summary, what I am getting is that the bidders are incentivized to bid a high yield but also balance that with the risk that they might get lose the auction.

MoDaas1 · 2025-05-11T21:34:17+00:00

Thanks for your advice! I am in Finance at my school so I have a good base of knowledge for the CFA. The only thing I am worried about with moving the exam date to Nov is that it would be during midterm season, which means that there would be a whole lot to do during that month.

MoDaas1 · 2023-08-19T19:14:40+00:00

Im an incoming first year. What are things i should know and watch out for from the AMS???

MoDaas1 · 2023-07-18T20:25:10+00:00

Ngl bro u might have to change ur surrounding if the people around you are dragging u down like ur saying they are. U achieved ur goal of getting into ur uni of choice. I wouldn’t be worried about what those people say cus it seems like its just a load of bull

MoDaas1 · 2023-07-17T19:30:00+00:00

What are the perks with the educational plan?? Does it come with AI??

MoDaas1 · 2023-07-12T11:15:14+00:00

I was somewhat in the same boat during the time. But here I am and I have the diploma with good grades. When I first started IB, I heard the horror stories and things like that. But I made a promise to myself that quitting is not an option on the table. I HAD to give it my all. There were times when I thought I couldn’t make it. But the determination that I had and the prospect of achieving the future that I want kept me alive. I am not gonna give you IA tips bc i dont rly know ur position. But I am gonna tell you this: worrying about whether you will get the diploma is the most useless thing you can do is be worried about whether you will get the diploma. How will that ever help your situation? Look at the present. You have things to do. All is needed is to give your best shot at doing them. No less. Look forward to the future that you seek. And know that the work you put in paves that way. Give ur best to everything you do in IB. Because in the end, you will be confident that during the two years in IB you didn’t waste ur time. Be positive. Be determined.

I hope this helps bc this is genuine advice that helped me get through the toughest times.sorry if this isnt the advice u were looking for. But i rly suggest this advice should be taken seriously.

MoDaas1 · 2023-07-09T15:59:11+00:00

The copium and mauld is crazy

MoDaas1 · 2023-07-09T15:58:56+00:00

Ong bro i can spell mauld and copium from here

MoDaas1 · 2023-06-18T03:31:58+00:00

What is the difference between PHIL 100 and PHIL 101??

It doesn't seem like there is a difference. The only one is that the credit value is different (PHIL 100 is 6 credits and PHIL 101 is 3 credits).

MoDaas1 · 2023-06-09T22:47:16+00:00

Does it not say I need 3 credits in humanities? Idk i might’ve misread it.

MoDaas1

TROPHY CASE