A more detailed account of what happened at JP Morgan:
How JPMorgan Lost $17.5 Billion - Forbes
JP Morgan basically bet on the fact that the cost of insuring against a default of 'index' of american companies was higher than what it would cost to insure against default of each of the individual companies in that index. So it started selling insurance on this index. That went bad for them.
Another complex CDS, another great loss.
I didnt get your first point should i have left something? :)
Corporate Banking is a part of wholesale banking which serves corporate clients, mid size businesses , real estate developers and investors, international trade finance businesses etc
And Credit research analyst is a profile where one needs to find out the creditworthiness of the client before giving them any financial, services fund based or non fund based for corporate clients it includes financial statement analysis , trying to project growth of revenues and cash flows , and in turn trying to find out the probability of returns in future
PS: please correct me if i am wrong ..
PPS: For more details , I have given the links , Kindly go through them :)
Profiles like Basel III, treasury, ALM etc are hardly given for summers so they shud have been left.
AFAIK,
1. Corporate and wholesale banking are terms used for almost same thing.So u r rite there.:)
2. Credit RESEARCH and Credit ANALYSIS are though different.
Credit RESEARCH - is a wider term and covers economic , industry and company specific research . It may help a client take decisions so as to how to improve profit margins, where to invest , how much to invest, for how long to invest etc. Its a work done mainly by rating agencies.
Example - S & P recently downgraded US only after a thorough Credit RESEARCH done by it that mainly involved studying macroeconomic environment in wich US economy operated.
Credit ANALYSIS - watever u wrote :)....it is step 1 of whole Credit APPRAISAL process.
I didnt get your first point should i have left something? :)
Corporate Banking is a part of wholesale banking which serves corporate clients, mid size businesses , real estate developers and investors, international trade finance businesses etc
PS: please correct me if i am wrong ..
PPS: For more details , I have given the links , Kindly go through them :)
I guess corporate banking and wholesale banking are same 😃 proper classificatopn would be
Commercial banking - 1)Retail
2)Wholesale/corporate
see this link
https://www.online.citibank.co.in/portal/newgen/corporate/product_services/corporate_home/corporate_home.htm
Profiles like Basel III, treasury, ALM etc are hardly given for summers so they shud have been left.
AFAIK,
1. Corporate and wholesale banking are terms used for almost same thing.So u r rite there.:)
2. Credit RESEARCH and Credit ANALYSIS are though different.
Credit RESEARCH - is a wider term and covers economic , industry and company specific research . It may help a client take decisions so as to how to improve profit margins, where to invest , how much to invest, for how long to invest etc. Its a work done mainly by rating agencies.
Example - S & P recently downgraded US only after a thorough Credit RESEARCH done by it that mainly involved studying macroeconomic environment in wich US economy operated.
Credit ANALYSIS - watever u wrote :)....it is step 1 of whole Credit APPRAISAL process.
I think Credit Research is about EIC not just macro economic analysis but
Economic , Industry and Company research
PS: Do correct me if i am wrong :)
@Kapil yes 87ln already clarified it .. I would stick to Corporate Banking being a part of Wholesales banking still . 😃
Moody's downgrades ICICI Bank, HDFC Bank, Axis Bank - The Economic Times
Moody's downgrades LIC, outlook stable | Reuters
Further Bad news or is it?
Moody's downgrades LIC, outlook stable | Reuters
Further Bad news or is it?
I think Credit Research is about EIC not just macro economic analysis but
Economic , Industry and Company research
PS: Do correct me if i am wrong :)
Thats exactly what I have written
. U havnt read my post carefully.I wrote abt EIC before macroeconomic analysis.
Moody's downgrades ICICI Bank, HDFC Bank, Axis Bank - The Economic Times
Moody's downgrades LIC, outlook stable | Reuters
Further Bad news or is it?
As given in both the articles, [ ICICI + HDFC + AXIS ] & [ LIC ]
have high exposure to sovereign debt. In other words, high degree of correlation is there between credit strength of these BFSI giants and that of Indian Govt. If one is going south the other surely cant be going north.
Moody's downgrades of banks cannot be seen as a good sign for Indian govt as well.
Moreover, S & P also downgraded India's " outlook " to negative becuz of increasing CAD. This also signals that ratings downgrade is next on cards.
Problem lies with the assumptions of the formula. One of them being that Stock prices follow the Geometric Brownian Motion. Then we assume that mu is constant and that the process is homoskedastic.
Even simple assumptions that stock prices are lognormally distributed can be refuted by the above. Partial differential form of the BS is more correct, solving it starts assuming too many things.
Effect is that there may be other models that calculate value. You just "need to be with the market" many times. Input parameters when changed tell a different story in a drastic manner sometimes. One paradox is the occurrence of volatility smiles and surfaces which traders use very often as a proof of BS are actually derived from BS.
kapil.viit SaysBut what was wrong with formulayesterday read some news abt JP morgans $2 bil losses due to wrong hedging strategy so dangerous business it is
yesterday read some news abt JP morgans $2 bil losses due to wrong hedging strategy so dangerous business it is Hi,
i graduated in 2010...took an year off to prepare for mba exams...dint get a good coll...so took up an entry level job as an analyst(more like data entry)...so quit in 4 months and got busy wid mba exams again...but dint get a really good score...so now have a 2 year gap wid hardly 4 months of workex...
now i have got a job offer- jobbing and arbitraging
now i have an interest in finance n plan to do my mba in finance as well
i know wat jobbin n arbitraging is but is it good wen it comes to workex?
if i dont get a good coll...shud i take this up for a year and improve my profile by appearing for(hopefully clearing) CFA lvl 1 dec...and simultaneously trying for mba again?
i really want to improve my profile before getting into an mba coll...any other suggestions would be appreciated as well
p.s. i know this may not be the right thread to ask my queries but i thought the finance stalwarts here wud be able to help me better 😃
Thanks for posting the profiles available for finance students.
Now I have a query. Can you please differentiate all the profiles into 2 headings.
1) Core Finance Profile or 2) Financial Sales Profile.
For e.g. I don't know if Wealth Management comes under Category 1 or 2 ??
Here's a parallel thought...
Forget about MBA for 2-3 years - Continue on with the jobbing et al profile that you have available - you will get good understanding of the workings of the traders. Simultaneously try to work towards a area that suits you - equity / derivatives / commodities etc.
Parallelly clear the NCFM / NISM exams that are relevant to you. These would give you a standing and recognition that what you are doing in practice, you are beginning to understand theoretically also. CFA L1 can follow after this if you want.
Build up a solid finance profile (some experience as well as theory) and then go for the MBA. That time your maturity and experience will open more doors for you.
Hi,
i graduated in 2010...took an year off to prepare for mba exams...dint get a good coll...so took up an entry level job as an analyst(more like data entry)...so quit in 4 months and got busy wid mba exams again...but dint get a really good score...so now have a 2 year gap wid hardly 4 months of workex...
now i have got a job offer- jobbing and arbitraging
now i have an interest in finance n plan to do my mba in finance as well
i know wat jobbin n arbitraging is but is it good wen it comes to workex?
if i dont get a good coll...shud i take this up for a year and improve my profile by appearing for(hopefully clearing) CFA lvl 1 dec...and simultaneously trying for mba again?
i really want to improve my profile before getting into an mba coll...any other suggestions would be appreciated as well
p.s. i know this may not be the right thread to ask my queries but i thought the finance stalwarts here wud be able to help me better :)
Thanks for posting the profiles available for finance students.
Now I have a query. Can you please differentiate all the profiles into 2 headings.
1) Core Finance Profile or 2) Financial Sales Profile.
For e.g. I don't know if Wealth Management comes under Category 1 or 2 ??
I wont like to categorize them as core or non core but rather different roles it could be research , it could be risk management , it could be strategic formulation of financial strategy for a company etc and it could be client facing where not only your financial knowledge but selling skills are crucial
Client facing is one which gives importance to your soft skills a lot , you can call it sales but its much broader :)
Wealth management is proper client facing role where you have the knowledge of the investment proposals , client background and you understand his requirements , his goals and objectives and try and come to a win win situation for both you and your client .. Targets are assigned by an organization and the compensation does depend on it
Initially one is involved in lead generation and later on to proper interaction with clients and as you gain more experience , the person is given a choice in domain and roles
I have been through the maximum threads available on the pagalguy thread...this one is the most active one..I really think having threads like this make the site more authentic and fruitfull....I want to ask u that i m going for banking and insurance management with having core mathematics as my background...also having CFA in mind..I am not running behind the lucrative offers what cfa gets...does CFA helps me in the future to take the best of me with given profile...!
dear puys , i would like to know if finance firms hire engineering freshers ?? presently i have a job offer in hand from Automotive electronics company. . but i d like to join a finance company since i plan to do an MBA in finance. . I am just cutting my teeth into finance by going through sites like teachmefinance and yale`s open courseware. . should i be going for a certified course in finance or am i eligible to apply for finance firms. . have heard JP MOrgan, Deutsche bank recruit from tier one engineering colleges. . I have done my Bachelors in ELectrical and electronics engg from one of the top Five institutes In Karnataka. . How should i go about applying. . please guide me. .
ankitsinghal008 SaysI have been through the maximum threads available on the pagalguy thread...this one is the most active one..I really think having threads like this make the site more authentic and fruitfull....I want to ask u that i m going for banking and insurance management with having core mathematics as my background...also having CFA in mind..I am not running behind the lucrative offers what cfa gets...does CFA helps me in the future to take the best of me with given profile...!
See CFA helps you in gaining ample knowledge about various aspect of finance . L1 basically gives introduction to a lot of topics in finance without going deep in most.L2 focuses on valuation part.L3 runs into portfolio management.
If you think you are interested in knowing these things , you can opt for CFA.. my personal suggestion would be before doing the certification , just ask yourself Why CFA ?
One small thing . Jus a CFA doesnt fetch a lucrative job .. There are few other factors taken in to consideration as well .. so you can very well learn CFA without having that lucrative job in your mind
want to know diff. btwn ?? :-
1. Investment & Corporate banker
2. Treasury & Cash manager
FINANCE GODS PLEASE HELP!!!!!!!!!
My PROFILE IS AS FOLLOWS:-
XTH-81.80
XII th-81.50
B.E IN ELECTRICAL AND ELECTRONICS ENGINEERING-8.92/10
WORK EX-17 MONTHS IN A CONSTRUCTION GIANT( FIRST IN PURCHASE AND THEN AS SITE INCHARGE)
MBA- Going to join GIM goa(FINANCE- Major and OPERATION-Minor)
PRESENTLY PREPARING FOR CFA L1 AND ENJOYING THE COURSE
Now as am an EEE engineer with Work ex in Construction company so will it prove to be a deterrent in placements. Placements are decent at GIM. Further i always wanted to join International banks but i have heard that they prefer people with Commerce or CA background. And since very less PSU or Gov Companies visit the campus will i have a chances off campus. Just saw some vacancies in PSU and was surprised that they mentioned CA/ICWA background. If i take Finance as minor will my CFA be of any VALUE.
Thanks in adv
FINANCE GODS PLEASE HELP!!!!!!!!!
My PROFILE IS AS FOLLOWS:-
XTH-81.80
XII th-81.50
B.E IN ELECTRICAL AND ELECTRONICS ENGINEERING-8.92/10
WORK EX-17 MONTHS IN A CONSTRUCTION GIANT( FIRST IN PURCHASE AND THEN AS SITE INCHARGE)
MBA- Going to join GIM goa(FINANCE- Major and OPERATION-Minor)
PRESENTLY PREPARING FOR CFA L1 AND ENJOYING THE COURSE
Now as am an EEE engineer with Work ex in Construction company so will it prove to be a deterrent in placements. Placements are decent at GIM. Further i always wanted to join International banks but i have heard that they prefer people with Commerce or CA background. And since very less PSU or Gov Companies visit the campus will i have a chances off campus. Just saw some vacancies in PSU and was surprised that they mentioned CA/ICWA background. If i take Finance as minor will my CFA be of any VALUE.
Thanks in adv
1. U can get into Intl. banks based on ur MBA . B4 MBA whether u r were into manufacturing or constr. shudnt really be a deterrant. But u will be a fresher again.
2. Yes PSUs now want only CA/ICWA. IMO, intl banks will be a better choice if u wanna do somethng in life. Work culture of PSUs is a major major drawback . Growth opportunities are also ......
. Tho there mite be xceptions.3. Dont u think....CFA ( that too pre MBA ) + finance minors is a contradiction in itself? One shows determination to learn finance and other shows that there is some other priority and finance is being taken just for the sake of it . So first choose a way....if its not finance...then there shudnt be any CFA as well. Others may have a diff. view.
Howdie puys,
have a rather basic question and I think my LR skills are letting me down. maybe you could show me where I am going wrong.
in Cost Push Inflation, first the supply curve shift towards the left along the original demand curve raising the price level from the original intersection of P=10 to lets say P=20. This means GDP will also fall accordingly.
At this point, if policies stimulate demand, the new demand curve will form an intersection with the new supply curve (above) and the price willl change from P=20 to P=30, thereby bringing GDP back to the original GDP level.
Now the LR bit that is confusing me: If inflation in India today is due to cost pull inflation (oil inputs among others being more expensive), if the RBI decreases interest rates further, that should spur demand and while inflation will increase further (higher price of P=30), the GDP will return to its original rate.
Is the logic in the last paragraph correct? If yes, do you think it is a good idea for the RBI to decrease rates?
FINANCE GODS PLEASE HELP!!!!!!!!!
My PROFILE IS AS FOLLOWS:-
XTH-81.80
XII th-81.50
B.E IN ELECTRICAL AND ELECTRONICS ENGINEERING-8.92/10
WORK EX-17 MONTHS IN A CONSTRUCTION GIANT( FIRST IN PURCHASE AND THEN AS SITE INCHARGE)
MBA- Going to join GIM goa(FINANCE- Major and OPERATION-Minor)
PRESENTLY PREPARING FOR CFA L1 AND ENJOYING THE COURSE
Placements are decent at GIM. Further i always wanted to join International banks but i have heard that they prefer people with Commerce or CA background. And since very less PSU or Gov Companies visit the campus will i have a chances off campus. Just saw some vacancies in PSU and was surprised that they mentioned CA/ICWA background. If i take Finance as minor will my CFA be of any VALUE.
Thanks in adv
International Banks mostly will give back end research profiles or middle office profiles
PSU Banks do provide profiles in treasury , corporate banking etc which are decent profiles
CFA only matters if recruiters value them at your campus , else its not worth going for CFA ....if its just placement point of view if its long term then fine ..
ADDED Later : The statements above are for Tier 2 b-school and may not be applicable for every b-schooler , i think people should wait and see in their first year before jumping into the world of CFA or FRM 😃