ERM - Financial Risks: FLIES CC Financial Liquidity Interest Rate Exchange Rate Share Price Commodity Credit Non-Financial Risks: MONSTRAL Model Operations Non-Financial Settlement Tax Regulatory Accounting Legal
Aimee - it’s Traps! O-craps! 
bidder Wrote: ------------------------------------------------------- > MBS securities exposed to “SPC”: > Sector risk > Prepayment risk > Convexity risk > I have the following for MBS risks: Spread risk Interest rate risk Prepayment risk Volatility risk Model risk Not sure which is right?? My way of remember this list: SIP Vodka More 
Also, concerns of distressed securities investing: JEMM J factor risk Event risk Market liquidity risk Market risk
^ for MBS risk - I use MS. VIP.
Aimee Wrote: ------------------------------------------------------- > Someone gave this one earlier for forecasting > traps: OCRAPS > > Overconfidence > Confirming evidence > Recallability > Anchoring > Prudence > Status quo thats a good one…ive been using corpas…which means absolute nothing!! I am obviously not very creative.
OSHIT = what I will be saying about 22 minutes into the exam!
Aimee Wrote: ------------------------------------------------------- > Someone gave this one earlier for forecasting > traps: OCRAPS > > Overconfidence > Confirming evidence > Recallability > Anchoring > Prudence > Status quo Is recallability and selective recall the same?
^ No. Recallability = “I remember the S&P 500 went up 50% one year and I was a fool who didn’t invest back then. I’ll make sure to invest earlier this time around” Selective recall = cognitive dissonance = remembering the good parts about your performance, not so much the bad.
steph96 Wrote: ------------------------------------------------------- > bidder Wrote: > -------------------------------------------------- > ----- > > MBS securities exposed to “SPC”: > > Sector risk > > Prepayment risk > > Convexity risk > > > > I have the following for MBS risks: > Spread risk > Interest rate risk > Prepayment risk > Volatility risk > Model risk > > Not sure which is right?? My way of remember > this list: SIP Vodka More You are referring to LOS 31b - mortgage security risks. I was referring to LOS28d - MBS vs non-MBS risks. Can someone explain the difference between these two LOSes?
mp2438 Wrote: ------------------------------------------------------- > ^ No. Recallability = “I remember the S&P 500 went > up 50% one year and I was a fool who didn’t invest > back then. I’ll make sure to invest earlier this > time around” > > Selective recall = cognitive dissonance = > remembering the good parts about your performance, > not so much the bad. Thanks - Good and clear explanation.
Some good ones here
Nice Pneumonia thread. Thought it was mnemonics… But I suppose grammar and spelling doesn’t count at this exam
Why not trade? Traders Speak Bullsh… Trading constraints Story disagreement Buy and hold Seasonality Risks in buying a mortgage (backed security) with your wife? Buy it then find out she’s a VIP at the S&M club! Volatility risk Interest rate risk Prepayment risk Spread risk Model risk These are just two of many
For remembering the Active / Style return formulas: P = M + S + A Portfolio Return = Market Index Return + Style + Active (PMS Aggravates) and P = M + (B - M) + (P - B) Portfolio Return = Market Index Return + (Benchmark - Market) + (Portfolio Return - Benchmark) (Portfolio Managers Bring Many People Bucks)
Most random study mnemonic ever… straight out of the course books… “To keep type 1 errors and type 2 erros straight remember the phrase “Type 1 horn””. Right… what with the whole Type 1 error and horn connection.