sir along with hailing ur professional skills i would also like to hail ur personal skill which is patience....a lot times internet lagged but u didnt show ur frustation...too patient u r.....thnks for such a selfless service and making us help.......
Thank you so much, Utkarsh! Because of your crash course videos I've cleared my CFA Level 1 July exam. Due to some challenging personal life issues I was unable to study Fixed Income. I only studied FI through this crash course video on 2x speed 8 days before the exam and I scored more than 70 percent in FI. Big thank you to you! 🙏🙏 I really can't thank you enough😊🙏
@@kanchanagrawal3148 I swear on God. I was in a pathetic condition. Was going through a miscarriage. 😭 Had just a few days left to complete and revise everything. FI was completely left undone. So, I watched Utkarsh's videos in the last week before the exam.
Cleared level 1 today. Greatly because of you. I had a time constraint and highly recommend these crash courses. Got above 70% for most of my topics including fixed income due to your videos!
Utkarsh, you have done incredible service to us. First with your superb teaching skills and comprehension. And now providing the full course on TH-cam. Thank you a lot!!
Thank you Utkarsh for all your efforts!! 5:12:00 For the people using HP12c Calculator. The HP12c doesn't accept the maturity date of 31.122040 (eur format g), you will get an Error 8. Use the maturity of 1.012041. This will eliminate the error 8. Make sure calc is on F 6 (6 decimals) and ALG not RPN. The HP12c already assumes the following. -Coupon is semi-annually -FV is 100 When entering the YTM and coupon use the annual rates (the calculator will convert to semi-annually, but only on the Bond function). Commands used: f Reg(CLX) 12 i, 8 pmt 10.022021 enter(=) 1.012041 f PRICE (y^x key)
Dear Utkarsh, Your videos have helped a lot in my preparation for Level -1 without which I would have been searching in the dark for getting some light like a blind man. I don’t have words to thank you for the support I get from your classes. You are nothing less than God to me. I have learned a lot from your classes. Regular classes were detailed and extensive which gave me the experience in real life and understand things better .The Crash course was excellent in the last stage of my preparation to focus on key areas and revise it several times in short period of time. That boosted my confidence to a different level .Your knowledge and experience is incredible. Your short cuts and Jugad tricks helped me solve many complex problems and remember it. Thank you and God bless you..
Really thankful for these videos and Mr. Jain. But leaving work to get a better internet connection for the class is next level and I really appreciate him going to that effort for our us. Much Love from US
Thank You Utkarsh for these Video ....I passed CFA L1 on Aug 24 .... these revisions lec were really helpful at the last moment 😊... Thank You Once Again ...
There is a small error on the convexity formula used on the examples given in this tutorial - denominator is " 2 *Recall 2 *DeltaY^2 " instead of "Recall 2 *DeltaY^2" where Recall2 is given price at P0. Please correct it as it creates confusion. The rest of the tutorial is great! One suggestion: for those who are not able to remember modified duration (like me) use the BAII plus professional calculator 2nd9 (bond option). Even if you do not have the days if the question tells you period translate that into dates in the calculator yourself. For example: 1year period put SDT 30.12.2020 and RDT 30.12.2021 and vice versa depending on your example. NOTE - BAII plus will give you the MODIFIED DURATION - for Macaulay you need to use the formula: MD*(1+r/frequency). All the best!
thank you so much for commenting this, i was so confused and frustrated. can you please explain the convexity again if you have time. my exam is really soon!
Bailey Watson, CFA, manages 25 emerging market pension funds. He recently had the opportunity to buy 100,000 shares in a publicly listed company whose prospects are considered “above industry norm” by most analysts. The company’s shares rarely trade because most managers take a “buy and hold” strategy due to the company’s small free float. Before placing the order with his dealer, Watson allocated the shares to be purchased according to the weighted value of each of his clients’ portfolios. When it came time to execute the trades, the dealer was only able to purchase 50,000 shares. To prevent violating Standard III(B)-Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchased by: A. reducing each pension fund’s allocation proportionately. B. distributing them equally amongst all the pension fund portfolios. C. allocating randomly but giving funds left out priority on the next similar type trade. Answer is A but why ????? This question is from CFA Mock exam -2.
The allocation of Shares to each pension fund should be done on a pro-rata basis. Firms cannot prioritize certain accounts to the detriment of other accounts and must treat all accounts similarly unless the client opted for a certain level of service or the investment is not appropriate to the client's profile.
Quick one - in valuing Bond with spot rates if it is paying more than the spot it is a premium bond so you immediately know is higher than 1000 therefore take a stab in the exam if short of time.
Sir, well done for this. I am completely new to your channel and it is wonderful. You also seem a very good guy. Sir do you have recorded videos where you actively work the question bank ? I would obviously purchase it. Thank you so much.
For a high-quality debt issuer with a large amount of publicly traded debt, bond investors tend to devote most effort to assessing the issuer’s: A default risk. B loss severity. C market liquidity risk. ==> Credit risk consists of default risk and loss severity, if the issuer rating is of high quality, then investors should focus on loss severity, right? As default risk is low The answer is A How come?
9:01:45 What if u stored the contacts of the clients on ur phone or wrote them in ur personal contacts book? U could be very close to this client to the extend u two become friends...
In my opinion, mostly yes, but you must review on your own after, since there may be missing items or items that are outdated. I honestly don't know all the differences, so I just focus on the calculations and numerical stuff (for the shortcuts), and for theory I revise on my own. Please be advised that I haven't taken the exam yet as of the date I make this comment.@@dev1cegg
Hi! Just have a question about the matrix pricing portion the first example. You mentioned that we don’t need the BB bond, but I was wondering since the credit rating of this is lower shouldn’t the yield of a BBB bond be lower? So my expected answer is it should be higher than 8% (5yr BBB) but not more than 8.5% (7yr but BB)
Thanks a lot for these awesome videos. I just have a doubt that at 5.39.45 to calculate simple yield don't we have to deduct the discount amortized from coupon amount (instead of adding it, because we add that in case of premium amortized)
The reason behind this phenomenon is that the low coupon of the bond, which is characteristic to it, is responsible for reducing (not eliminating) the maturity effect on the bond. To contrast, the maturity effect is very prominent in zero-coupon bonds.
Thank you so much sir. It is very helpful. Is there any other method (other than formula) to solve for simplified FRN pricing model? Its very difficult to understand and remember the formula.
How can a software firm choose to comply with GIPS? "GS is a software firm that assist an asset management firm in achieving compliance with the GIPS standards by calculating performance in a manner consistent with the GIPS calculation requirements and managing all the assets’ records of the firm. Why??????
The software firm is creating software for the client who wishes to comply with GIPS. The software firm is merely providing assistance and is not making efforts to comply with GIPS for itself.
If i heard conversation of two workers of the company (positive news) and second case if i overheard the conversation of ceo ( positive news) In which scenario i can trade/ edit my research report according to mosaic theory?(both is non public) And can we just edit our research reports using mosaic or we can also trade on it?
I think the CEO information is considered material information, where workers might not have the conclusive information, there can be considered of having a ambitious price effect, thus non-material. So I think you can still edit your research report after doing a thorough analysis. Whereas, on the CEO information you are abstained to act on it.
It is allowed only if the individual has earned the right to use the designation and has, when required, renewed his/her membership by completing the PCS and paying the dues.
You will not be held accountable for not following recommended procedures. Hence, you are not in violation if you do not follow recommended procedures. This is not the case when it comes to required procedures, if you do not follow the required procedures you will be in violation.
Sir, if the employee is working on the weekends at McDonald’s, can he get away with not informing his employer about the same at all? As in is it a violation if he doesn’t inform the employer ever? Thank you.
1. A Collateralized Mortgage Obligation (CMO) is a security that comes to being when the cash flows of mortgage-related instruments are tranched. 2. A Collateralized Debt Obligation (CDO) is a security whose underlying is a diversified pool of a debt obligation/s. 3. A Mortgage-Backed Security (MBS) is an asset-backed security which has a residential or commercial mortgage(s) as the underlying. 4. An Asset-Backed Security (ABS) is a security belonging to a special legal entity and has cash flows coming from an underlying asset. 1, 2, & 3 are types of asset-backed securities.
A mortgage pass-through security is a type of security where mortgage-holders create a mortgage pool and sell certificates of participation in this mortgage pool.
Simple, any prepayments of principals received on the mortgage are directly passed on to the investors. So in this case its the investors who hold the prepayment risk
Pietro, president of Local Bank, has hired the bank’s market maker, Vogt, to seek a merger partner. Local is currently not listed on a stock exchange and has not reported that it is seeking strategic alternatives. Vogt has discussed the possibility of a merger with several firms, but they have all decided to wait until after the next period’s financial data are available. The potential buyers believe the results will be worse than the results of prior periods and will allow them to pay less for Local Bank. Pietro wants to increase the likelihood of structuring a merger deal quickly. Which of the following actions would most likely be a violation of the Code and Standards? A Pietro could instruct Local Bank to issue a press release announcing that it has retained Vogt to find a merger partner. B Pietro could place a buy order for 2,000 shares (or four times the average weekly volume) through Vogt for his personal account. C After confirming with Local’s chief financial officer, Pietro could instruct Local to issue a press release reaffirming the firm’s prior announced earnings guidance for the full fiscal year.
Hello Utkarsh, Thank you so much for all the hardwork! I have a question regarding standard 7. Are we allowed to put, "Cleared CFA L1 examination" in our resumes and LinkedIn headlines? or should we just put, pursuing CFA charter.
Bonds which are issued and are traded in the Eurobond market are labelled Eurobonds. These bonds are suffixed based on currency, for example, Euroyen bonds are Eurobonds denominated in Japanese Yen (JPY). Global bonds are bonds issued simultaneously in the Eurobond market and in one/more domestic bond market.
Sir, can you please clarify on reinvestment risk and market price risk? A positive duration gap exposes the investor to market price risk from increasing interest rates, no?
When holding period is shorter then there’s positive duration gap which exposed investors to price risk & once interest rate goes down it helps investors
Doubt A Bank deposit 100 days is quoted with an add on yield of 1.5% based on 360 day year.calculate the bond equivalent yield and the yield on a semi annual bond basis. Please help me with the solution
Joyce Parker is a portfolio manager serving East AM Associates. Parker is calculating the return generated on one of her client’s accounts for the current fiscal year. She calculates the net-of-fees return but does not subtract investment management fees rendering the calculated return noncompliant with the GIPS standards. East AM Associates has complied with the GIPS standards since establishment even though local laws do not mandate firms to do so. Is Parker in violation of the CFA Institute Standards of Professional Conduct? A.Yes. B.No, failure to comply with the GIPS standards does not result in a violation of the Standards of Professional Conduct. C.No, she has not violated any law. :- Parker is in violation of Standard III (D) Performance Presentation because she has falsely claimed compliance with the GIPS standards. By misrepresenting performance information, Parker is in violation of the CFA Institute Standards of Professional Conduct. r is C: "No, failure to comply with the GIPS standards does not result in a violation of the Standards of Professional Conduct."
Problems for Bonds are often solved using YTM as discount rates. No spot rates are provided in question. Is that not incorrect. By using YTM are we using a average rate to discount the CFs(more like a hurdle rate to evaluate if bond is over/under valued).
Why is this statement a violation:- "I have successfully completed the first two levels of the CFA exam program.” He is just stating this as a fact and not using it as a partial designation??????????????
sir along with hailing ur professional skills i would also like to hail ur personal skill which is patience....a lot times internet lagged but u didnt show ur frustation...too patient u r.....thnks for such a selfless service and making us help.......
where do you finds words which can be used to appreciate this man
Cambridge dictionary
@@ajaychoudhary6957 will find there and then update this comment 😂😂😂
Thank you so much, Utkarsh! Because of your crash course videos I've cleared my CFA Level 1 July exam. Due to some challenging personal life issues I was unable to study Fixed Income. I only studied FI through this crash course video on 2x speed 8 days before the exam and I scored more than 70 percent in FI. Big thank you to you! 🙏🙏 I really can't thank you enough😊🙏
are u saying truth, cause my fi is left too and 9 days left
what else did u did for FI
@@kanchanagrawal3148 I swear on God. I was in a pathetic condition. Was going through a miscarriage. 😭 Had just a few days left to complete and revise everything. FI was completely left undone. So, I watched Utkarsh's videos in the last week before the exam.
@@kanchanagrawal3148 I only watched his videos and practised 2-3 tests from Schweser's practice book
How did you score on the practice test because I have few days left and my score still isn't up to mark
Cleared level 1 today. Greatly because of you. I had a time constraint and highly recommend these crash courses. Got above 70% for most of my topics including fixed income due to your videos!
In 2024 this video is still gold. Thank you very much
Thank you Alan! utkarsh
@@FintreeIndia Aman😅
I just finished the Ethics part. I see each video is 8-12hrs, u really put in a lot of work! Thank u so much!
Utkarsh, you have done incredible service to us.
First with your superb teaching skills and comprehension.
And now providing the full course on TH-cam.
Thank you a lot!!
I don't think this is Utkarsh
Thank you Utkarsh for all your efforts!!
5:12:00 For the people using HP12c Calculator. The HP12c doesn't accept the maturity date of 31.122040 (eur format g), you will get an Error 8. Use the maturity of 1.012041. This will eliminate the error 8. Make sure calc is on F 6 (6 decimals) and ALG not RPN.
The HP12c already assumes the following.
-Coupon is semi-annually
-FV is 100
When entering the YTM and coupon use the annual rates (the calculator will convert to semi-annually, but only on the Bond function).
Commands used:
f Reg(CLX) 12 i, 8 pmt 10.022021 enter(=) 1.012041 f PRICE (y^x key)
sir even after teaching continuous for this much hours you don't seems to be enervated. Hats off to you
18:05 , 22:39 - SPOT RATE - YTM (TRICK)
45:35 - MOD , MAC, CONVEXITY (SEMI ANNUAL SUM)
48:44 - chance of mistake in exam ( MOD DUR, SEMI ANN)
51:58 -chance of mistake in exam ( MAC DUR, SEMI ANN)
53:06 -chance of mistake in exam ( CONVEXITY, SEMI ANN)
57:00- EXAM TRICK
1:24:32- NEGATIVE CONVEXITY (watch once)
1:58:53- FINDING PVBP USING MODIFIED DUR
2:25:50 - BOOTSTRAPPING OF SPOT RATES
2:49:10- FORWARD RATE SUM
3:01:45 FORWARD RATE TRICK
3:11:08- SPOT RATE TRICK
4:24:42 - FULL PRICE/DIRTY PRICE
4:58:06 - TYPE 2 SUM OF FULL/DIRTY
4:20:00 - REPO
5:24:50- MATRIX PRICING SUMS
5:37:48- CURRENT YIELD /SIMPLE YIELD
5:40:06 -(DONT FORGET TO DIVIDE BY NO. OF YEARS)
5:43:34 - YIELD TO CALL AND WORST
5:49:21- YIELD SPREAD
6:11:45- TIME/ CREDIT TRANCHING
6:39:13- CREDIT CARD ABS
6:20:35- PRE PAYMENT RISK
7:09:30- PREPARATION STRATEGY
Is it relevant for 2024?
Yes@@discordpending
@@Vallabh3Tupe thanks bro
Thank you sir for being there. Wish you hit 100k mark before CFA level 1 exams ends. :)
Dear Utkarsh,
Your videos have helped a lot in my preparation for Level -1 without which I would have been searching in the dark for getting some light like a blind man. I don’t have words to thank you for the support I get from your classes. You are nothing less than God to me. I have learned a lot from your classes. Regular classes were detailed and extensive which gave me the experience in real life and understand things better .The Crash course was excellent in the last stage of my preparation to focus on key areas and revise it several times in short period of time. That boosted my confidence to a different level .Your knowledge and experience is incredible. Your short cuts and Jugad tricks helped me solve many complex problems and remember it. Thank you and God bless you..
Really thankful for these videos and Mr. Jain. But leaving work to get a better internet connection for the class is next level and I really appreciate him going to that effort for our us. Much Love from US
Hi,
are these videos / Revision lecture (streamer 3 yrs ago) in line with aug'24 & Feb'25 attempt?
Thank You Utkarsh for these Video ....I passed CFA L1 on Aug 24 .... these revisions lec were really helpful at the last moment 😊... Thank You Once Again ...
Hi,
are these videos / Revision lecture (streamer 3 yrs ago) in line with aug'24 & Feb'25 attempt? 1:52
There is a small error on the convexity formula used on the examples given in this tutorial - denominator is " 2 *Recall 2 *DeltaY^2 " instead of "Recall 2 *DeltaY^2" where Recall2 is given price at P0. Please correct it as it creates confusion. The rest of the tutorial is great!
One suggestion: for those who are not able to remember modified duration (like me) use the BAII plus professional calculator 2nd9 (bond option). Even if you do not have the days if the question tells you period translate that into dates in the calculator yourself. For example: 1year period put SDT 30.12.2020 and RDT 30.12.2021 and vice versa depending on your example. NOTE - BAII plus will give you the MODIFIED DURATION - for Macaulay you need to use the formula: MD*(1+r/frequency). All the best!
thank you so much for commenting this, i was so confused and frustrated. can you please explain the convexity again if you have time. my exam is really soon!
40:00 MD, Convexity, 2:00:00, 5:10:00, 6:20:00
Amazing. Thank you so much for everything.
Hats off and amazing work for releasing the video. Salute to you.. so much helping rather than FIntree LMS videos
He is the god for us, specially if i talk about myself cause i cant afford to pay huge tuition fees
Bailey Watson, CFA, manages 25 emerging market pension funds. He recently had the opportunity to buy 100,000 shares in a publicly listed company whose prospects are considered “above industry norm” by most analysts. The company’s shares rarely trade because most managers take a “buy and hold” strategy due to the company’s small free float. Before placing the order with his dealer, Watson allocated the shares to be purchased according to the weighted value of each of his clients’ portfolios. When it came time to execute the trades, the dealer was only able to purchase 50,000 shares. To prevent violating Standard III(B)-Fair Dealing, it would be most appropriate for Watson to reallocate the 50,000 shares purchased by:
A. reducing each pension fund’s allocation proportionately.
B. distributing them equally amongst all the pension fund portfolios.
C. allocating randomly but giving funds left out priority on the next similar type trade.
Answer is A but why ?????
This question is from CFA Mock exam -2.
The allocation of Shares to each pension fund should be done on a pro-rata basis. Firms cannot prioritize certain accounts to the detriment of other accounts and must treat all accounts similarly unless the client opted for a certain level of service or the investment is not appropriate to the client's profile.
Thanks a lot for these crash course. My exam went well
Did you clear?
Please upload revised CC for current attempts
8:48:00
8:55:09 Important Question
8:58:45 Imp Q
9:10:21 Responsibility of supervisor Question
9:40:54 Important
Thank you sir for helping make all our concepts clear really grateful for this crash course
Quick one - in valuing Bond with spot rates if it is paying more than the spot it is a premium bond so you immediately know is higher than 1000 therefore take a stab in the exam if short of time.
Sir, well done for this. I am completely new to your channel and it is wonderful. You also seem a very good guy. Sir do you have recorded videos where you actively work the question bank ? I would obviously purchase it. Thank you so much.
Great stuff, when are you going to do the level 2 crash courses? ... This would be of great help for revision
Great session sir, really appreciate it. Thank you soo much for constantly motivating us.
Great content, thanks for your hard work on helping us students.
Thank you so much Utkarsh sir!
I cannot thank you enough Utkarsh!
Thanks for wonderful session.
Fantastic.
Thanks allot sir 🙏🙏
Sir i really liked your crash course videos, it could be great if i get access to your juice notes also
Thank you! Great work!
Very well explained Sir. It is a tough concept.
Thank you very much sir for these videos they are indeed very helpful for revision!
Thanks a lot!
thank you
Thank you so much. Its Really useful.
Thank you ☺️
2:28:53
Thankyou! This was really helpful :)
For a high-quality debt issuer with a large amount of publicly traded debt, bond investors tend to devote most effort to assessing the issuer’s:
A default risk.
B loss severity.
C market liquidity risk.
==> Credit risk consists of default risk and loss severity, if the issuer rating is of high quality, then investors should focus on loss severity, right? As default risk is low
The answer is A
How come?
Marathi manus.....Mi CFA chi tayari chalu kartoy sir, lavkarach tumchyashi join honar.
9:01:45 What if u stored the contacts of the clients on ur phone or wrote them in ur personal contacts book? U could be very close to this client to the extend u two become friends...
Thanks 🙏🙏
we do not have cpr , smm and bootstrapping topics in 2024 attempt right ? Also does this video contain the frn topic also?
Thank you so much for these videos, you have gained atleast 1 future student from this effort :)
Thanks a lot sir
Awesome! God bless you 👌🏻👍🏻
Thank you! You too!
How did u calculate the spot price in first question.. Can u pls explain
Ty... bro ty u have cleared my doubts so well ...
Thank you sir
The Indra-the-tiger story was brilliant
Hey can I refer this video for FI for Nov 23 exams?
In my opinion, mostly yes, but you must review on your own after, since there may be missing items or items that are outdated. I honestly don't know all the differences, so I just focus on the calculations and numerical stuff (for the shortcuts), and for theory I revise on my own. Please be advised that I haven't taken the exam yet as of the date I make this comment.@@dev1cegg
This is so helpful!!!!!
3:07:22 magic doesn't work for 1st one ??
fintree juice notes is not available in amazon. Could you please make it available.
Hi! Just have a question about the matrix pricing portion the first example. You mentioned that we don’t need the BB bond, but I was wondering since the credit rating of this is lower shouldn’t the yield of a BBB bond be lower? So my expected answer is it should be higher than 8% (5yr BBB) but not more than 8.5% (7yr but BB)
855+827= 1682
841*2 =1682 than it becomes 0 how are they getting 23.11 @ 1:02:10
Sir why did you take -PV? Do we have to take it in evry problem
can any one plz tell which subject youc an refer in 2024 also
Great
Thanks a lot for these awesome videos. I just have a doubt that at 5.39.45 to calculate simple yield don't we have to deduct the discount amortized from coupon amount (instead of adding it, because we add that in case of premium amortized)
The discount amount computed is also added, which is consistent with the computation for a simple yield.
The maturity effect is least likely to hold for a:
low-coupon, long-term bond trading at a discount ? why ?
The reason behind this phenomenon is that the low coupon of the bond, which is characteristic to it, is responsible for reducing (not eliminating) the maturity effect on the bond. To contrast, the maturity effect is very prominent in zero-coupon bonds.
Thank you so much, sir! Really grateful! As a question, how difficult do you think the real exam is compared to the CFAI/FINTREE MOCKS?
Hi aayan, i have the same question as yours. Do you have an answer now?
Thank you so much sir. It is very helpful.
Is there any other method (other than formula) to solve for simplified FRN pricing model? Its very difficult to understand and remember the formula.
While calculating money duration the present value of bond is full price or flat price? Does it include accrued interest?
It is the full price
Do you have juice notes?
I wonder how does TI calculate Accrued interest on bonds without having a date set for calculation? I mean doesn't accrued interest accrue every day?
How can a software firm choose to comply with GIPS?
"GS is a software firm that assist an asset management firm in achieving compliance with the GIPS standards by calculating performance in a manner consistent with the GIPS calculation requirements and managing all the assets’ records of the firm.
Why??????
The software firm is creating software for the client who wishes to comply with GIPS. The software firm is merely providing assistance and is not making efforts to comply with GIPS for itself.
plx help how to solve this
If i heard conversation of two workers of the company (positive news) and second case if i overheard the conversation of ceo ( positive news)
In which scenario i can trade/ edit my research report according to mosaic theory?(both is non public)
And can we just edit our research reports using mosaic or we can also trade on it?
I think the CEO information is considered material information, where workers might not have the conclusive information, there can be considered of having a ambitious price effect, thus non-material. So I think you can still edit your research report after doing a thorough analysis. Whereas, on the CEO information you are abstained to act on it.
"AM Investment has prepared and presented this report in compliance with Global Investment Performance Standard. " Does this violate GIPS ?
A requirement of GIPS Advertising Guidelines is the statement: "[Firm name] claims compliance with the Global Investment Performance Standards."
@Fintree Support:
1. Based on Standard 7, Can you give clarity on usage of CFAI Logo on visiting card, is it allowed ? or it violates the standard?
It is allowed only if the individual has earned the right to use the designation and has, when required, renewed his/her membership by completing the PCS and paying the dues.
sir give one round of triumph bobber na pls
is a failure to comply with RECOMMENDED procedures also a violation? or it is a violation only for not complying with REQUIRED procedures?
You will not be held accountable for not following recommended procedures. Hence, you are not in violation if you do not follow recommended procedures. This is not the case when it comes to required procedures, if you do not follow the required procedures you will be in violation.
Okay, thank you!
Query -
The bond equivalent yield of a 180-day banker’s acceptance quoted at a discount rate of 4.25% for a 360-day year is to ?
To convert a bond equivalent yield to a money market yield:
(4.25% * 180/365) * 360/180 = 4.19%
Can I watch FI crash course for august 2024?
❤ u sir
Sir, if the employee is working on the weekends at McDonald’s, can he get away with not informing his employer about the same at all? As in is it a violation if he doesn’t inform the employer ever?
Thank you.
An employee is advised to abstain from independent activity which is competitive to the employer firm.
Sir, I m in always confusion regarding. CMO CDO MBS ABS.. can u tell the differences bw each
1. A Collateralized Mortgage Obligation (CMO) is a security that comes to being when the cash flows of mortgage-related instruments are tranched.
2. A Collateralized Debt Obligation (CDO) is a security whose underlying is a diversified pool of a debt obligation/s.
3. A Mortgage-Backed Security (MBS) is an asset-backed security which has a residential or commercial mortgage(s) as the underlying.
4. An Asset-Backed Security (ABS) is a security belonging to a special legal entity and has cash flows coming from an underlying asset.
1, 2, & 3 are types of asset-backed securities.
@@FintreeIndia thanku so much sir🙏🙏🙏
9:36:14 isn't this eg more of violation of fair dealing?
Can you please explain the term mortgage pass through securities? I couldn’t solve mane questions because of this word
A mortgage pass-through security is a type of security where mortgage-holders create a mortgage pool and sell certificates of participation in this mortgage pool.
Simple, any prepayments of principals received on the mortgage are directly passed on to the investors. So in this case its the investors who hold the prepayment risk
@@manasnaik8077 thank you
Pietro, president of Local Bank, has hired the bank’s market maker, Vogt, to
seek a merger partner. Local is currently not listed on a stock exchange and
has not reported that it is seeking strategic alternatives. Vogt has discussed the
possibility of a merger with several firms, but they have all decided to wait until
after the next period’s financial data are available. The potential buyers believe
the results will be worse than the results of prior periods and will allow them to
pay less for Local Bank.
Pietro wants to increase the likelihood of structuring a merger deal quickly.
Which of the following actions would most likely be a violation of the Code and
Standards?
A Pietro could instruct Local Bank to issue a press release announcing that it
has retained Vogt to find a merger partner.
B Pietro could place a buy order for 2,000 shares (or four times the average
weekly volume) through Vogt for his personal account.
C After confirming with Local’s chief financial officer, Pietro could instruct
Local to issue a press release reaffirming the firm’s prior announced earnings
guidance for the full fiscal year.
I am confused in this question as Local is currently not listed on a stock exchange. Then how Pietro can place buy order
Hello Utkarsh,
Thank you so much for all the hardwork!
I have a question regarding standard 7.
Are we allowed to put, "Cleared CFA L1 examination" in our resumes and LinkedIn headlines? or should we just put, pursuing CFA charter.
you can but not near your name
Is this applicable for July 21 attempt
Great session Sir, I have one major confusion regarding the difference with Eurobonds and Global Bonds/Markets.
Could you kindly help with that ?
Bonds which are issued and are traded in the Eurobond market are labelled Eurobonds. These bonds are suffixed based on currency, for example, Euroyen bonds are Eurobonds denominated in Japanese Yen (JPY).
Global bonds are bonds issued simultaneously in the Eurobond market and in one/more domestic bond market.
Got it, thank you🙇♀️
Sir, can you please clarify on reinvestment risk and market price risk? A positive duration gap exposes the investor to market price risk from increasing interest rates, no?
When holding period is shorter then there’s positive duration gap which exposed investors to price risk & once interest rate goes down it helps investors
Doubt
A Bank deposit 100 days is quoted with an add on yield of 1.5% based on 360 day year.calculate the bond equivalent yield and the yield on a semi annual bond basis.
Please help me with the solution
The bond equivalent yield is: (365/100) * {[1000+(1000*100/360*0.015) - 1000]/1000} = 1.52%
The corresponding semi-annual rate is: { [ (1 + 0.0152)^0.5] - 1} * 2 = 1.514%
Hi Sir, Please suggest how can I get the Juice notes? As it is currently not available on amazon and I really need it for my CFA L1 may exams. Thanks.
Did you get juice notes?
Joyce Parker is a portfolio manager serving East AM Associates. Parker is calculating the return generated on one of her client’s accounts for the current fiscal year. She calculates the net-of-fees return but does not subtract investment management fees rendering the calculated return noncompliant with the GIPS standards. East AM Associates has complied with the GIPS standards since establishment even though local laws do not mandate firms to do so.
Is Parker in violation of the CFA Institute Standards of Professional Conduct?
A.Yes.
B.No, failure to comply with the GIPS standards does not result in a violation of the Standards of Professional Conduct.
C.No, she has not violated any law.
:- Parker is in violation of Standard III (D) Performance Presentation because she has falsely claimed compliance with the GIPS standards. By misrepresenting performance information,
Parker is in violation of the CFA Institute Standards of Professional Conduct.
r is C: "No, failure to comply with the GIPS standards does not result in a violation of the Standards of Professional Conduct."
The correct answer is A.
4:16:00
For the tinder joke, is selecting clients, here is matching clients with a suitable portfolio. Kind of different..
2:14:00
You've been adding timestamps across our videos, hope you're enjoying them !
Problems for Bonds are often solved using YTM as discount rates. No spot rates are provided in question. Is that not incorrect. By using YTM are we using a average rate to discount the CFs(more like a hurdle rate to evaluate if bond is over/under valued).
Can I watch ethics for 2024 exam?
Syllabus is. mostly same
Thank you
bhau bhau bhau bhau
Pls share pdf as well
Link for the pdf: bit.ly/3jAcA7s
@@FintreeIndia thank you sir. Much love from Pakistan
Why is this statement a violation:- "I have successfully completed the first two levels of the CFA exam program.” He is just stating this as a fact and not using it as a partial designation??????????????
The statement is correct and doesn't violate any Standard if it is a fact.