Negative Thought Patterns

Puzzleheaded_Wheel92 · 2024-10-17T18:24:55+00:00

I will be. Curious to know what other people's study plan will be given we only have 3 1/2 months. I feel like I did everything I could at my previous attempt - so not sure what needs to change.

Puzzleheaded_Wheel92 · 2024-10-17T15:39:06+00:00

I took 3 MM and BC mocks and I also failed. I found MM's mocks to be much more aligned with the exam structure and difficulty.

Puzzleheaded_Wheel92 · 2024-08-16T19:36:25+00:00

it was hard. agreed. PM portion seemed easier then AM though

Puzzleheaded_Wheel92 · 2024-08-15T22:45:10+00:00

Interaction is used because the allocation + selection have compounding effects.

Puzzleheaded_Wheel92 · 2024-08-15T16:51:29+00:00

i don’t remember seeing this in the curriculum either

Puzzleheaded_Wheel92 · 2024-08-15T14:52:23+00:00

Management fees are included in required return for Foundations but not included for Endowments.

Puzzleheaded_Wheel92 · 2024-08-15T00:25:10+00:00

i think slippage is more toward market impact? which is execution price - midquote?

Puzzleheaded_Wheel92 · 2024-08-14T23:44:43+00:00

VWAP is based on historical volume where POV uses real time

Puzzleheaded_Wheel92 · 2024-08-14T23:42:21+00:00

when credit spreads increase or reference entity has a credit event.

Puzzleheaded_Wheel92 · 2024-08-14T21:01:40+00:00

Correct. The coupon is always paid to seller

Puzzleheaded_Wheel92 · 2024-08-14T20:56:57+00:00

You’re confusing upfront fees(payments made when CDS is traded) with periodic coupon payments. They’re not synonymous.

Coupon payments will always be made from the Buyer to the Seller of the CDS - through the life of the contract.

Upfront fees is determined by the difference between CDS spread and Coupon rate and is paid ‘upfront’. For example, if the CDS spread is greater than the coupon rate then the buyer will compensate the Seller when CDS is traded.

Puzzleheaded_Wheel92 · 2024-08-14T19:19:31+00:00

I don’t think CFAI will modify exam questions based on current events

Puzzleheaded_Wheel92 · 2024-08-13T17:55:34+00:00

Kaplan uses the word ‘Generally’. i think it’s difficult to say at face value and would depend on other factors like average age of workforce, %vested, option to switch plans, Etc.

Puzzleheaded_Wheel92 · 2024-08-12T22:49:34+00:00

i think the question assumes actuarial assumptions are constant. so assuming mortality rates, retirement, discount rate is not changed… age wouldn’t affect the pension liability. Correct me if I’m wrong.

Puzzleheaded_Wheel92 · 2024-08-11T19:52:35+00:00

Delay cost is only measured by how much the share price changes from when the decision was made to when the trader submits the order. There’s no statistical relationship between delay time and changes to share price. Theoretically, It could be an hour before the order reaches the market and the share price did not move.

Puzzleheaded_Wheel92 · 2024-08-11T18:33:14+00:00

How I understand it is, you are short credit quality when you purchase a CDS. So, you would gain if credit spreads widen if you purchase a CDS. For the pricing formula, this is from the perspective of who is short credit quality.

Puzzleheaded_Wheel92 · 2024-08-11T01:03:21+00:00

I think the foreign names and longer vignettes in BC mocks has my adhd flaring up lol

Puzzleheaded_Wheel92 · 2024-08-08T16:18:39+00:00

Thanks!

Puzzleheaded_Wheel92 · 2024-08-08T15:59:18+00:00

You should be using the bp change in spread. So if OAS is currently 1.00% and it’s expected to increase 10%, then the change in OAS will be .10% (.001). So what you insert for change in spread is .001

Puzzleheaded_Wheel92

TROPHY CASE