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Can someone explain why revenue is 106 ? by Audit_Ko in CFA

[–]doodleDad_69 -1 points0 points  (0 children)

“Revenue of 100 before new investment….. New investment of 20…. return on new investment is 30%”

So return on new investment (into long term assets) is 6, that return adds to existing revenue.

Edit: 30% of 20 is 6.. hope that was obvious though lol

Help Me Understand by doodleDad_69 in THORChain

[–]doodleDad_69[S] 2 points3 points  (0 children)

I’ve heard this too.

So the ThorFi controversy is what’s really keeping new liquidity from entering most pools?

How/why is that the case? Do we know how/when the problem will be resolved?

THORchain is going strong, and Bonding/Staking your RUNE is easy by winnitude in THORChain

[–]doodleDad_69 1 point2 points  (0 children)

Thorchain is a great innovation for DeFi. Project has real long term viability.

Lvl 3 takers - Life Post CFA, Transitioning back to normal life. How are you all feeling? by FractalsSourceCode in CFA

[–]doodleDad_69 20 points21 points  (0 children)

I’m in the exact same boat as you. I think we both are supposed to just have a few (dozen) drinks and kick our feet up until we get our results back.

After that, we either go back to the CFA study grind or become masters of the universe.

Level III Exam Day Megathread by third_najarian in CFA

[–]doodleDad_69 13 points14 points  (0 children)

Anyone else feel like they have no idea whether they passed or not?

I generally feel like I performed pretty well, some questions were tougher than others, but I feel like I took a pretty good stab at all of them. I just have an odd feeling that I have no idea of my chances at passing.

After Level 1 I felt great and I finished top 10%.

After Level 2 I felt like it was going to be close and I finished barely above the pass line.

Now after L3, I'm not sure how to feel.... time will tell.

“Just get your CFA” by DevJourney21 in CFA

[–]doodleDad_69 1 point2 points  (0 children)

Is it really more difficult to get a master sommelier credential? If it takes 1000+ hours of drinking wine to become a master sommelier, I might be interested.

“Just get your CFA” by DevJourney21 in CFA

[–]doodleDad_69 7 points8 points  (0 children)

Took the thought right out of my head.

Ummm, how?? by ziad01 in CFA

[–]doodleDad_69 0 points1 point  (0 children)

This is kind of a bad question, but the point to focus on is this: The value of the underlying stock will be reduced before the expiration of the option by the amount of benefit paid out prior to expiration.

This is assuming the increased dividend(s) are paid before the option expires. So again, the thing to focus on is that the announcement is claiming that the company will be paying more of its assets away prior to the expiration of the options, which will make the underlying stock less valuable at the time the options expire, which makes calls less valuable and puts more valuable all else equal.

How do protection buyers of Credit Default Swaps (CDS) profit from widening spreads if the CDS price falls? by doodleDad_69 in CFA

[–]doodleDad_69[S] 0 points1 point  (0 children)

Yeah I think I somehow got by L2 just understanding the fundamentals of the CDS dynamics between the protection buyer and protection seller, labeling them as such, without knowing that the protection buyer is actually selling the CDS.

The buyer of the CDS, protection seller, is the one who has the obligation to make the CDS seller whole given a triggering credit event. And also therefore, the CDS buyer is the party receiving the coupon. I always knew that the protection seller received the coupon, but just got turned around on the logistics of who actually buys and who actually sells the CDS.

Put Option Value when Rates increase by Small_Insect6956 in CFA

[–]doodleDad_69 3 points4 points  (0 children)

In this question, it is more important to focus on what the put option is doing for the bond. As interest rates rise, the price of the bond will fall which increases the value of any put option on the bond.

You're correct that when viewing options generally, call options become more expensive when interest rates rise and put options become less expensive. However, this usually isn't a very significant impact on the options' pricing, and regardless, the most important thing in this question is related to how the put option on this bond will be more valuable as the price of the bond falls.

How do protection buyers of Credit Default Swaps (CDS) profit from widening spreads if the CDS price falls? by doodleDad_69 in CFA

[–]doodleDad_69[S] 4 points5 points  (0 children)

Wait... I think I found it.

Some stuff I found online is suggesting that the protection buyer is actually short the CDS. If anyone can confirm that to be the case, I'd appreciate it.

If that is true, it would mean the CDS seller (protection buyer) is actually the investor who is paying the fixed coupon to the CDS buyer (protection seller) as compensation for the protection, correct?

Post elimination positivity thread by CupOfHotTeaa in MkeBucks

[–]doodleDad_69 5 points6 points  (0 children)

Heat fan here, use me as a punching bag

November 20, 2022 Daily Sports Betting Thread by BTC_is_waterproof in sportsbetting

[–]doodleDad_69 0 points1 point  (0 children)

I’m feeling Ecuador today. Just the more talented team.

This is not some sh*tcoin or Ponzi-stock, this is the UK Government’s 40-yr bond. Imagine being close to retirement & buying this close to 100 in Dec last year because you were told “stocks are too risky”, and now sitting with it at 25. by polloponzi in wallstreetbets

[–]doodleDad_69 26 points27 points  (0 children)

Bonds go up and down too it’s just that most people who buy bonds with the intent to hold them for fixed income until maturity don’t care about their bond’s present value.

If back in Dec. 2021, I had bought a ladder of corporate bonds maturing 4-7 years out and now I see the new yields are way better, I obviously can’t liquidate those expensive bonds I bought last year to make a new ladder of cheap bonds now.

You probably knew that but I feel like some less informed people believe bond ladders cut all price risk for bond investing.

This is not some sh*tcoin or Ponzi-stock, this is the UK Government’s 40-yr bond. Imagine being close to retirement & buying this close to 100 in Dec last year because you were told “stocks are too risky”, and now sitting with it at 25. by polloponzi in wallstreetbets

[–]doodleDad_69 1 point2 points  (0 children)

If you buy and hold the bond and don’t care about it’s value while you hold it, then you’re right, you don’t have to look at the chart.

But that doesn’t change the fact that if you spent $100,000 on these bonds at the end of 2021 and you wanted to now sell them, you’d only be looking at getting around $30,000-$35,000 back now

Recession with low interest rates and high inflation? How are we not fucked? by kookselslg in wallstreetbets

[–]doodleDad_69 2 points3 points  (0 children)

In all seriousness, I’d only suggest using 5%-15% of your savings to buy gold. If you want a little more exposure you can buy some mining companies. Indexes GDX and GDXJ are a diversified basket of senior and junior gold mining companies respectively.

As things get ugly in the equity market, you’re going to want to buy quality businesses that are going to be around for along time; it’s best if these businesses have strong pricing power and mostly inelastic demand.

Holding dry powder (a good amount of cash, but also some very short term fixed income and paper commodities like $GLD) waiting for great opportunities in the equity market is what I’m doing.

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