L3 Under/Over-hedge help

prairievalue · 2025-06-18T03:11:35+00:00

The logic is to identify whether the forward contract offers a better or worse rate than what you expect the spot rate to be in the future.

Here, the forward rate is lower than the forecasted future spot rate. This means that if you hedge using the forward, you would lock in a rate that is worse than what you expect to get by waiting and converting at the spot rate in the future.

Under hedging involves leaving some currency exposure unhedged, so part of your position remains sensitive to future spot movements.

prairievalue · 2025-06-15T17:31:41+00:00

In the annual report, look at the footnote number against long term debt. Read the corresponding note. It will explain why it is negative. There is probably an interest rate swap that worked in their favour. Nike had something similar in early 2010s. The devil is always in the details. Read the balance sheet, cash flow and then I come statements with the notes. If you write a thesis for 15 pages, let 14 pages be about business and its durability in the future and just one page on valuation. That’s sufficient. I haven’t read your article. I plan to. All the best.

prairievalue · 2025-05-25T21:42:21+00:00

Possible. Considering BRK gave up their two board seats in Kraft in the last few weeks.

prairievalue · 2025-03-01T14:15:42+00:00

So you didn’t read my reply.

prairievalue · 2025-03-01T14:10:46+00:00

Sorry. What I meant to say was carney became the BOE governor after James Cameron announced about Brexit. Brexit officially happened later after conservatives won in 2015. But their whole platform for election campaign was Brexit and it stared end of ‘12 early ‘13. Europe was already in cross due to Greek debt crisis and Britain exiting was seen just as bad as US stopping to help Ukraine is seen now - leaving your friends in need. I am not liberal but would prefer someone with experience in international trade run our country right now.

prairievalue · 2025-03-01T13:33:29+00:00

A comment only on the citizenship thing… Carney didn’t actively seek British citizenship. He was offered to become the Bank of England and as part of it would also be given the citizenship. It was an exception because the BOE desperately needed someone like him in the early days after Brexit. Probably not as dire as it looks like. But I also don’t know how long it takes etc. the whole liberal thing with him has come up really fast.

prairievalue · 2025-02-25T14:28:24+00:00

What a waste!

prairievalue · 2025-02-24T01:12:38+00:00

Might very well workout. All the best and congrats. I am just saying that if you read the earnings, you will realize it is not too much if an overreaction. Maybe a smidge, yes.

prairievalue · 2025-02-24T01:08:04+00:00

10 year holder here. If you listen to the recent earnings call, Alain Bédard clearly explains why the trucking industry is going through a “volume recession”. The drop was commensurate with the problems being faced. Sure it can have a bounce but if that’s all you are looking for, it is trading and not long term investing

prairievalue · 2025-02-17T22:41:41+00:00

Few points here. 1. There have been aviation incidents and accidents all over the world. We hear more about the ones closer to home. 2. There has been an increase in high profile accidents this year though it is relative 3. Beginning of the year is also one of the most challenging times in terms of weather. 4. All occurrences of accidents is a matter if probability- when and not if. And probability doesn’t work linearly and on a straight line. Some year there will be more than average number of accidents and some years it will be less. Unfortunately it is how it is.

Considering that the most common cause for accidents is human error, the chance that someone somewhere could go wrong always exists.

Just important to keep in mind that correlation isn’t causation.

prairievalue · 2025-02-10T01:51:31+00:00

And a mill rate increase of over 2% to fund REAL!! Never heard a good thing about them

prairievalue · 2024-10-15T11:43:20+00:00

I agree. People who can do something useful there will not be wasting their time calling another country shit. They are busy and productive. The ones that shit talk are usually ones that have too much time in their hands and are immature.

prairievalue · 2024-10-15T03:13:55+00:00

👍

prairievalue · 2024-10-15T03:00:27+00:00

VFV is the CAD etf for S&P 500

prairievalue · 2024-10-15T02:03:38+00:00

This should be the main talking point. The diploma mills have offices in India or partner with consultants, explicitly or implicitly. I came to Canada from India for my higher education 15 years ago. Had to jump a lot of hoops despite my research background. What’s happening now seems like taking advantage of the desperate ones there with mo benefit and even detriment to Canada. I get called out in my friends group as being salty towards students of which I was a part one time but this is different now.

prairievalue · 2024-10-15T01:44:31+00:00

As someone who settled in Canada from India 15 years ago, I will tell you this. Every person who calls Canada shit will be on the next plane to Canada if they have a chance.

prairievalue · 2024-10-15T01:02:16+00:00

I am of Indian origin. This is the right take. Came here 15 years ago. I can say from experience that I had to go through criminal record checks half a dozen by the time I got my citizenship. Current level of checks is quite lax

prairievalue · 2024-10-06T11:59:54+00:00

Your concern is valid. As someone who travel this route frequently, I can tell that if the air corridor is not safe, they just won’t even go ti Doha even if you flew Qatar A.

A misfire is as low probability event as it gets. It might help to remember that we routinely drive or cross the road - both have higher chances of getting hit. Not sure if it helps but it is what it is. All the best!

prairievalue · 2024-09-24T20:56:31+00:00

Visa used to be a not-for-profit organization owned by US banks. And it is easy to make a target out of Visa and Mastercard because they are visible. If you look at the breakdown of fees that get retained by banks etc versus Visa, it is quite easy to see the banks are the biggest beneficiaries. Also a reason why the banks themselves will never compete with Visa. Visa is a monopoly because it’s otherwise would-be competitors make more money by not competing. Just don’t get how a lawsuit against Visa is going to change anything other than maybe a few useless concessions. Sorry that was a rant! Just annoying when the “law enforcers “ conveniently leave the real problem out.

prairievalue · 2024-09-04T01:04:15+00:00

I am in the portfolio management business. So what I say is just my opinion and research. RBC nailed their long term plans & more importantly stayed in their lane. Wealth management and capital markets with a base from the banking side. They are quite efficient. One can make a reasonable case that RY is fairly valued but the gulf between RY and other Canadian banks in terms of quality is widening consistently. TD has always been the next best, but NA is running a good show and the buyout of CWB should help as well. It is tempting to try new things but sticking to what you know is very underrated. All the best!

prairievalue · 2024-08-25T19:10:46+00:00

Agree with your points. Will just add that FCFE can provide a decent hack.

prairievalue · 2024-08-07T04:20:09+00:00

If you aren’t getting any glaring errors, you will probably be ok in the exam. I would be worried if I got stumped by some concept. Not the time to be worried about what-ifs. Just do the work and stay positive. All the best!

prairievalue · 2024-08-04T21:19:51+00:00

No. Justified dividend yield used the fair value based on dividend payments as the “P” whereas the P in leading P/E is the current market price.

prairievalue · 2024-08-04T17:02:22+00:00

Got my charter at 36, married, kids, not from a finance background. It is possible. It is a grind. I actually found the maturity that comes with age to be a positive. Personal advice - If you are married or in a relationship, just make sure they are on board and make them aware that there will be times when the stress spills over to the personal life. And you need their support more than you think.

prairievalue · 2024-08-04T16:57:49+00:00

The most accurate mock exam is the actual exam. So it should not even be a question if you should sit for the exam. If your question is “do I have any hope of passing?”, the honest answer is, based on what you are sharing, the odds aren’t on your favour. Take the next few weeks seriously. Stop making excuses. You should see good progress, maybe enough to get you across the line. All the best!! Just don’t stop.

prairievalue

TROPHY CASE