Funny Shortcuts to retain Lists !!

possibly stupid question - don’t have books with me, but what is Flow of Funds? - - is that meant to be Fund of Funds? - - can’t think of what a flow of funds strategy is

Ahh yes - I think I type that wrong - tis Fund of Funds

8 risk reporting Market risk (financial) Liquidity risk (financial) Credit risk (financial) Sovereign risk (financial) Model risk (financial/non-financial) Settlement risk (Herstatt) (non-financial) Operations risk (non-financial) Regulatory risk (non-financial) MLCS MSOR first four are financial risk (sovereign can be both) while the rest four are non-financial. MSCS = Merrill Lynch Credit Suisse - financial companies MSOR = MicroSoft ORacle - non-financial companies…

nice one gudeki!

Somebody wanted a kind of dirty one. I was just thinking…its a good thing that Poland and Korea didn’t replace Brazil in the “Dreaming with the B.R.I.C. countries”!

ANYBODY COME UP WITH A TECHNIQUE TO MEMORIZE THE “MICRO PERFORMANCE ATTRIBUTION” FOR A DOMESTIC PORTFOLIO? I’ve been trying to find some kind of “chain” or “common link” between pure sector allocation, allocation/selection interaction, and within sector selection for a couple of months now but still haven’t been able to figure one out.

Sorry, nothing nasty here, but these will work… LOS 31.u factors for selecting equity investment managers – it’s a ReCiPe for PROFITS… Research Consistent staff Performance Philosophy for investing Risk mngt process Organizational structure Fees Interviews Turnover Style LOS 33.c Ford Motor Co. can improve Board oversight – they make CARS in MICH. Chairman is indep. Advisors ok Retirement age Self-evaluation Meetings w/o management Independent majority Compensation using equity Holdings of equity required

Effective Spreads: When trying to remember the numerous formulas - here is another simple one… Effective Spread (BUY ORDER) = 2 x ('E’xecution price - 'M’idpoint)

Data_Monkey Wrote: ------------------------------------------------------- > Effective Spreads: > > When trying to remember the numerous formulas - > here is another simple one… > > Effective Spread (BUY ORDER) = 2 x ('E’xecution > price - 'M’idpoint) Effective Spread (SELL ORDER) = 2 x (Midpoint - > Execution)

Here are a couple; Risks in Mortgage Backed Securities… I’Ve P.M.S Interest rate risk Volatility risk Prepayment risk Model risk Spread risk And why are boards of directors inadequate? Because they’re LICE Lack independence Insufficient attention paid Compensation conflicys Evasion of conflict

JPD, the latter one sounds like a bad case of head lice to me :slight_smile:

ALL ABOUT Benchmarks We all know SAMURAI now… SAMURAI - Properties of a VALID benchmark S - Specified in Advance A - Appropriate M - Measurable U - Unambiguous R - Reflects Current Investment Conditions A - Accountable I - Investable TYPES of Benchmarks - “My Black Ferrari CARS” M - Managers Universe B - Broad Based Index F - Factor Model Based C - Custom Security A - Absolute R - Returns-Based S - Style Indexes BENCHMARK QUALITY - STRiCT(ly) Positive (Drop the ‘ly’) S - Systematic Bias T - Tracking Error Ri - Risk Characteristics C - Coverage Ratio T - Turnover Positive - Positve Active Positions

Bump - good stuff

Problems in Forecasting: Every Economist Hates Executives - Poor # Crunchers Can’t Produce Money Economic Data has limitations Errors/biases in data measurement Historical estimates are limiting Ex post data Patters unlikely to continue Conditional information (failure to consider) Correlations & Causality is misinterpreted Psychological traps of analysts Model input uncertainty

Criteria you MUST think about when developing an IPS for your client -RRTTLLU- R - Risk R - Return T - Time Horizon T - Taxes L - Legal L - Liquidity U - Unique circumstances

The Board Oversight is a really good one. • Name the factors of Bond Yield Risk Premium Default Risk Real Risk Free Rate Maturity Inflation Liquidity Tax Premium Acronym: DRMILT


One more -

MBS risks: SIP a Vodka Martini (Spread, Interest, Prepayment, Volatility, and Model risks)

That’s the spirit!!! yes

if u sum them all up thats also a lot of shortcuts to memo!