Student In Finance Stream Essay

592 words - 3 pages

L
CHAPTER 8: Share and share alike - derivative inequity

This chapter is about what probably is the most traded instrument: equities. According to the author, Equity derivatives were the hottest financial instrument in the 90’s.
Author quotes the situation as, “I came from a bond background where you put up your money, you know what interest you get, and at the end, you get your money back. With shares, the only similarity to this is that you put up the money. You have no guarantee that the company will pay dividends or how much, if any; you don't get your [same] money back, ever. If you want your money back you need to find another punter to buy the stock from you. The company can issue new shares, reduce the value of your holdings, they can buy back shares, they can change your rights. And if things go wrong, everybody gets paid before ...view middle of the document...

Stock Dealers intervened into the situation and tried to gain from it and on the other hand, tried to set it out right. They bought the shares from foreign investors, and in turn sold the equity option to the foreign investors, which gave the investor, right to purchase the UK stock which was a deep in money option. The foreign shareholders now no longer received dividends, but they received the raise in stock price above the strike price, the whole arrangement was made to keep the withholding tax under check.

CHAPTER 9: Credit where credit is due - Fun with CDS and CDO

Everything you wanted to know about a good part of the cause of our current troubles.

The author discusses that credit is like glue: once you take on risk, you can't get rid of it easily. CDS are then created to sell the risk to someone else. Mr. Das also shows that the stuff can get so complicated that sometimes you do not even know whose risk you are buying.
Here, he explains the pattern in which the commercial banks take credit risk and the way investment banks do. The competition between the commercial and investment banks shapes the credit market. Initially the investment banks were not happy with the arrival of commercial banks into the credit market, many investment banks got sunk, many got acquired by the commercial banks due to the low interest rates that the commercial banks had, which attracted many customers, however the moment the investment banks entered into credit market, the game became interesting.

MBS, mortgage backed securities are discussed and the birth of Collateralized loan obligation (CLO) and CDO (Collateralized debt obligation) from MBS has been explained, as in how MBS led to the birth of CDO and how are they different from each other.
Another new learning was about Tranches, which we understood were small segments of mortgages with different maturities.

Other Papers Like Student In Finance Stream

Resource Optimization Essay

2552 words - 11 pages strategies in order to reduce costs and improve service of the University’s support functions across all business units both centrally and in faculties. Bring forward recommendations and an action plan for an Operating Model that will drive cost savings in the short and long term. Scope of Review Human Resources Development Office Financial Services External Relations IT Research Services Research Services Supply Chain Management Student and

Fi515 Week 2 Assigment Essay

1140 words - 5 pages FI515 Homework 2 Keller Graduate School of Management FI515 Managerial Finance Sept 09, 2011 Page 112 3-1 Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Formula for DSO = Receivables/ Ave sales per day = Receivables/( Annual sales/365) = 20 days x

Career Path

865 words - 4 pages levels?” “How should we manage the complexity of global distribution and logistics?” (Wailhum, T) in order for their company to have a competitive advantage and see success in the future. Career paths are great ways to start brainstorming on what an individual wants to do after post- secondary. As a student, its often hard deciding on what sort of stream I want to get myself into. By comprising a set of career goals and objectives, one will be

Permanent Residence

589 words - 3 pages The Importance of Permanent Residence Most students want to study abroad to receive a better education and to acquire the permanent residence status in the country where the student wants to study. Different countries have their own rules and regulations for permanent residence, but the rules for some countries such as the United States and Canada are very strict and unbreakable. Permanent residency provides numerous opportunities and

Personal Statment

578 words - 3 pages decisions need to be made. An interesting aspect of this is how to apply the statistical techniques and use the latest financial concepts to analyze the past and model the future. Motivated by this, I undertook an internship in the accounting and finance department of a local firm in China. By working as a member of the financial analysis team, I developed a genuine passion for finance and investment. I am therefore determined to gain as much

Financial Terms And Roles

382 words - 2 pages Financial Terms and Roles ·        Finance -- The science of the management of money and other assets. ·        Efficient market – A market in which prices correctly reflect all relevant information. ·        Primary market – This is part of the capital market that deals with issuing of new securities. ·        Secondary market – This part also called the aftermarket, is the financial market in which previously

Writeup

428 words - 2 pages Project Finance The Methodology most used to finance capital-intensive projects was called project financing, and the field was called project finance. Characteristics There were many definitions of project fiance, but almost all of them had the following key characteristics. The main feature is the creation of a Special Purpose Vehicle (SPV), a bankruptcy-remote entity that remained secure if the parent company went under. The SPV has

Credit Cards and College Students

1200 words - 5 pages Credit Cards and College Students Many students in college are taking out student loans to pay their expenses; add credit card debt to the mix and it is just a bad situation. Almost every college student has seen the ads for credit cards. Credit cards are a way of life for many people. Americans are already bombarded with ads for the latest and greatest credit cards. Is it really necessary to market them on college campuses as well? Many

Finance Week 6 Individual

554 words - 3 pages Student Name | Cortne Chartier | Course and Section Number | Program of Study | FIN 1103 | Business | Finance FIN 1103 Week 6 Individual Work Monthly Payments and Finance Charges, and the Rule of 78 Assignment Instructions | To complete this assignment: 1. Answer all of the questions below in the space provided. 2. Reflect on the information presented in this week’s lesson and provide an insightful response to each

Syllabus 405

2234 words - 9 pages health care entities. The fundamentals of financial planning, cost concepts, capital budgeting, and management analysis are applied in the health care environment. Issues surrounding the development and management of budgets are also examined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student

Agency Theory

324 words - 2 pages Agency theory is controversial and essential theory in accounting, economic and finance sphere. The theory raises a problem of agency relationship, in which, cooperating parties- principal and agent, have different goals and division of work. Agency theory arises two problems: the difficulty of verifying what the agent is actually doing, and the conflict between goals and desires of the principal and agent (Eisenhardt, 1989). Agency theory is

Related Essays

Sport Cricket Essay

617 words - 3 pages 4. Found stability in fincnace with a steady revenue stream What we can learn 1. We should look at teams and leagues that have been successful and analyze why, and look to emulate their business models. 2. If you see something that is promising and you find someone with enough mone to finance it, it is possible to see rapid growth 3. Stadiums are one of the largest expenses for teams and the IPL has elected to pla at existing stadiums

Fins2624 Course Essay

4870 words - 20 pages policy of the School of Banking and Finance is that the lecturer-in-charge will need to be satisfied on each of the following before supporting a request for special consideration: 1. Does the medical certificate contain all relevant information? For a medical certificate to be accepted, the degree of illness, and impact on the student, must be stated by the medical practitioner (severe, moderate, mild). A certificate without this will not be valid

Importance Of Business Finance Essay

563 words - 3 pages cash stream. A concern holder needs to obviously describe their accounts receivable and accounts payable. They need to keep a steady and balanced cash stream next to all epoch. This resources they be obliged to not at all consent to your accounts payable exceed their accounts receivable in one agreed month. A concern holder be obliged to and carefully cope their debt. They be supposed to not at all consent to their debt develop too high

Hahaha Essay

709 words - 3 pages Operational Road Map for Dissertation (MBA IV & BBA VI SEM & B Com IIIyr) Steps to be followed • Identification of specialized subject in each stream ▪ Faculty list Students are allocated to the Faculty Engaged in teaching MBA ▪ Student list • Interactive lecture to all students of IV Sem on Steps for Dissertation (Seminar hall): To be announced