Financial Exam Help 123

Month: May 2014

  • Risks in Fixed Income Investing

    —

    by

    Bill Campbell
    in

    There are quite a few risks inherent in investing in fixed income securities / portfolios.  Amongst them are these that I’ll discuss in this article: Interest rate risk Yield curve risk Call/prepayment risk Reinvestment risk Credit risk Liquidity risk Currency exchange rate risk Inflation risk Volatility risk Event risk Sovereign risk I’ll cover each of…

  • Venture Capital Method (Funding)

    —

    by

    Bill Campbell
    in

    The venture capital  (VC) method is an idea with which candidates often struggle, but it’s not nearly as difficult as some people would have you believe.  (I know: I say that a lot.  This time, however, it’s true).  I’ll cover a single round of funding, then multiple rounds of funding, and will include the IRR…

  • CPR vs. SMM vs. PSA

    —

    by

    Bill Campbell
    in

    All of these TLAs (Three-Letter Abbreviations) refer to measurements of the amount of prepayment on a mortgage-backed security (MBS, yet another TLA): CPR abbreviates Conditional Prepayment Rate, an annual measure of the prepayments on an MBS SMM abbreviates Single-Month Mortality, a monthly (duh!) measure of the prepayments on an MBS PSA abbreviates Public Securities Association,…