Risk management is an important feature of the CFA® exams. Since many candidates work for or aspire to work for banks, an understanding of credit risk is critical, simply because credit risk is the main risk-exposure element of the vast majority of banks in any country.
Read MoreAfter the announcement of Panera’s deal to be taken private by JAB Holdings in April 2017, the company was quick to tout the benefits of exiting the public markets.
Read MoreDuring the Great Recession, a handful of major banking institutions put national economies at risk. To avoid economic collapse, governments stepped in, which cost taxpayers dearly. To prevent a reoccurrence, Basel III was developed to force banks to manage their risks more prudently.
Read MoreNow that this decade has come to an end, it is almost unimaginable to look back to its beginning—in a world directly post-GFC—and believe the incredible run seen from practically every asset class since. Most investors who have participated in any market besides cash have done quite well since those 2009 lows.
Read MoreIf you are involved in the banking industry or in the CFA® Program, you have probably heard of the London Interbank Offered Rate (Libor). Libor has long been the gold standard benchmark rate in the markets, which is why it is estimated that $200 trillion in US securities are tied to that rate.
Read MoreIt is important for CFA® charterholders and candidates to understand the foundations of global banking regulation, currently within the framework of Basel III. This third iteration of the framework has built upon Basel I and II by mandating reinforced and stronger capital ratios and higher-quality capital, and supplementing capital requirements with leverage ratio and minimum liquidity requirements.
Read MoreThere are a number of threats facing the international banking system; however, the greatest risk is the amount of debt that has been accumulated around the globe.
Read MoreActive fixed-income management may be more relevant than ever in the current environment.
Read MoreAs an investor, I’ve always fancied myself as a contrarian who goes against the crowd, someone who can detect patterns and notice minutiae where others can’t. Perhaps that’s why at the age of 27, while my friends and peers were content with gifting one of their two monthly paychecks to their landlord, I became a first-time homebuyer.
Read MoreI certainly had more questions than answers when beginning my journey, but after going through it, I figured out what was truly important and what isn’t. I hope to shed some light on what you need to know before embarking on the path to becoming a CFA charterholder and I will also highlight some common misconceptions.
Read MoreFinancial operations do not lend themselves to innovation. What is recurrently so described and celebrated is, without exception, a small variation of an established design…” Yet, financial bubbles keep occurring due to “...the brevity of the financial memory.
Read MoreIt may help to know that the skills you learn while preparing for the CFA exams will be useful later in your financial career. While the CFA material has changed over the years and will continue to be updated after your final exam, your analytical skills will endure. Don’t be afraid to use them to question the status quo.
Read MoreSince the last recession which was crystallized by financial crisis in 2008, the US and global economies have experienced sustained growth. Major market indicators such as S&P 500, NASDAQ, and Dow Jones have gained in excess of 280%, 400%, and 250% respectively. The number of stock market analysts predicting recession is increasing by the day.
Read MoreCould holding too much cash lead to misestimating the firm’s value? Yes, it could.
Read MoreWomen remain significantly underrepresented in the finance community, and there are challenges to advancement. In my opinion, the main challenges include getting in the door at top firms and gaining the respect of our male colleagues. Holding the CFA designation helps provide knowledge and personal conviction from having accomplished such a difficult goal, as well as many other important skills and success criteria.
Read More“Hmm…probably during my CFA Level II studying.” That is my response when my boss asks me how I became familiar with the swaps market.
Read MoreOne of the remarkable trends of the last 10 years has been the growing popularity of exchange traded funds (ETFs) as advisers and the investing public have grown frustrated by their failed efforts to outperform the major market indexes. As returns continue to fall short of expectations and the prospects of subpar annual returns looms on the horizon, fees for actively managed portfolios are receiving greater attention than they would in a higher-return environment.
Read MoreObtaining your CFA charter is a long journey, taking place over a minimum of 18 months—but likely longer for most charterholders. One of the biggest hurdles for candidates is coming up with and sticking to a study plan.
Read MoreAt $26.19/barrel, February 11, 2016, marked the lowest closing price for the front month (spot) contract of West Texas Intermediate (WTI) crude oil since May 2003.
Read More2016 was one of the most politically eventful years since I started my career in investment management more than 11 years ago. The impact these events have had on financial markets were as unexpected for the financial industry as the results themselves were for the entire world watching.
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