Thoughts?
And, for whoever cares, I caved today and learned the two bond hedge for mtge backed securities…
yaaaaaaay! congratulations !
haha yea I was going to punt on the 2 bond hedge calculation myself. But I seriously doubt they will make people set up and solve solving simulatenous equations…
just one more useless fact to pack in the brain…
And, if they don’t test on some of the more time/calc intensive stuff in the morning (like attribution) I will not be happy. Spent too much time beating that stuff in my brain.
WTf? Singer and no music. Waste of life. I hate that model. Always make a mistake in examples with segmentation/integration.
Solving an equation of 2 unknowns is something any high school kid knows how to do.
Sometimes I wonder about the quality of CFA candidates, this is the stuff that gives me think I can pass despite the fact that I am underprepared. If 50% of population dislikes solving for two unknowns, I will take the exam right now.
Would like to see some of you guys take the first 2 acturial exams, you would go hug your CFA books and never let them go.
Yeah. Figured its a pretty testable corner of he material that most people haven’t spent a lot of time on.
Also, we know how CFAI loves to test EM material bc they are such a globally focused organization.
Why do they use the additive method to solve for two unknowns vs the substitution method? That’s what threw me.
I have done severall actuarial exams and have four more to do to be qualified under the institute of actuaries ( british). I have passed 11.
Ther are guys who worked with me who have qualified as actuaries and could not pass the level 2 exam.
They love the insurance and pensions stuff but investment stuff scares the shit out of them, especially the word derivative.
how canyou like pensions stuff but not investments?..they are pretty linked
they are but there is a ton of stuff on the liabilities, like actually calculating liabilities and benefits that actuaries do for their valuations. There is some investmnet work in that since assumptions need to be set based on future outlook. But the investmnet involved is not as broad as what we have learnt in this designation.
In my department we use these reports and stuff and look at alm strategies and setting investmnet policy.
I guess it is all in all related work just some guys prefer some parts of it more than others.
To put things in perspective , if I can get pass this on Saturday i will be the only person in my firm with this designation and we both know how much pension plan defined benefit and contribution plans, especially defined contribution relate to investment and the designation.
ppl who complained about quants in L2…would get absolutely raped in insurance certificate related maths right? stochasitc differential equations stuff?
Im pretty sure the 2 treasury hedge for negative convixity MBS doesn’t require any calculations, Schweser just throws them in there for sh!ts and giggles- not sure though, read the LOS. I think U just need to know the concept of using a ST and LT treasuries or futures to hedge.
Im not going to waste my time learning Singer and Teehar- again, I’d just know the concept of intergrated and segregated markets. I was fortunate enough to pass lvl’s 1 & 2 on my first attempt, but if I had failed and had regrets it would have been spending too much time nailing calculative intensive concepts that have little probablitily of showing up.
@LostCFA- get over your actuarial crap, there are plenty of ASA’s that can’t pass level 2. I think a few parts of the CFA curriculum provide exemptions to some accuarial exams. Its not like those test are PhD programs at MIT or CalTech… there’s always something more difficult, so save it.
Agreed totally
yea LostCFA is on his imaginery high horse he puts himself on
^ LOL. Yea he is stirring up some bad karma for himself on Saturday…
Really considerate there, lostcfa.
actuaries > CFA?
you should be on comedy central
I have been expecting singer terhar for a while now. Called it last year and it was a no show, calling it again this year. Why? Bc I have never once seen it in a prior mock. Gamblers fallacy? Maybe, but that’s last years curriculum anyhow.