Finance Quiz

FINANCEEVENTS copyToday, deviating from our routine post, we are trying to bring to you all an amazing quiz on finance. Let`s be fair to ourselves and give a challenge to our learning till date. So, here comes the show:

  1. This is a stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
  2. This phrase is Latin for “according to value”. It is a tax based on the assessed value of real estate or personal property.
  3. An interest rate swaps whose notional value adjusts according to rising interest rates by indexing the floating portion to a Constant Maturity Swap (CMS). Continue reading “Finance Quiz”

Leverage is good or bad

Sharing one of old article and trying to revisit the era of 2008.images

As I have been continuously posting on the Credit derivatives these days thought of sharing a post that I did early in 2008 when the face of Investment banking completely changed after sub-prime crisis.

There was an era when Investment banking (IB) was on the role … hefty packages, luxurious life, dream job for a financial student were some of the features of IB. Over the years evolved as a very big concept coined by the US, In India we use to call that as a merchant banking . Continue reading “Leverage is good or bad”

The Murderer of Financial System

Nobody knows has the biggest financial crisis already occurred during the phase of 2008-2009 or it is about to come in the near r-OWS-large570future .Was reading the mess from Jack and Suzy welch, who recall Agatha Christie’s murder on the Orient express. In his novel 12 people were suspected of murder and 12 turned out to be guilty in the same way he represented 12 murderers of the US financial system.

1.   The Federal Reserve Board.  :    The Man behind here is Alan Greens pan Fed governor in 1987-2006 a serious bubble maker. Introduction Continue reading “The Murderer of Financial System”

Merrill Lynch’s Economic commentary

James Bond Island

I was going through some of the latest Economic Commentary done by Merrill Lynch some extract of rules I found them interesting to share across.

1. In order for an economic forecast to be relevant, it must be combined with a market call.

2. Never be a slave to the date – they are no substitute for astute Continue reading “Merrill Lynch’s Economic commentary”

Margin Call

The film’s title comes from a stock market term referring to a demand for money when something bought with borrowed funds has ruinously decreased in value, which pretty much describes the crux of the situation the firm finds itself in. “Margin Call” has a fondness for business jargon in its dialogue.

Margin Call takes place at a fictional bank in the early days of the financial crisis. The bank sees the writing on the wall, and its CEO John Tuld (Jeremy Irons) makes the decision to dump a ton of MBS onto the laps of customers, Continue reading “Margin Call”