The statement in the 2nd last paragraph on P.456 of V2 of CFAI text : asset-only perspective vs. liability relative perspective. Is the liability relative perspective = ALM (Asset-Liability Management) perspective ? Anyone can clarify ?
I guess you are right…
AMC Wrote: ------------------------------------------------------- > The statement in the 2nd last paragraph on P.456 > of V2 of CFAI text : asset-only perspective vs. > liability relative perspective. > > Is the liability relative perspective = ALM > (Asset-Liability Management) perspective ? > > Anyone can clarify ? You are right. Liability relative prespective takes into account the liabilities a s well as assets
rp77 & derswap or anyone else, In Schweser’s note & its Q-bk, the term of “liability-mimicking” is used too. Is it that this term also means “ALM” ? Please clarify ! I am confused by these terms !
AMC Wrote: ------------------------------------------------------- > rp77 & derswap or anyone else, > > In Schweser’s note & its Q-bk, the term of > “liability-mimicking” is used too. Is it that this > term also means “ALM” ? > > Please clarify ! I am confused by these terms ! yes, these terms refer to the same thing.
AMC, Liability mimicking is nothing but trying to align the assets with the known liability schedules. So the wored mimicking-to mimick the liability structure.
derswap07 Wrote: ------------------------------------------------------- > AMC, > Liability mimicking is nothing but trying to align > the assets with the known liability schedules. So > the wored mimicking-to mimick the liability > structure. derswap07, TKVM for your response ! Can we say that actually Liability mimicking = ALM ?
Definitely
derswap07 Wrote: ------------------------------------------------------- > Definitely derswap07, TKVM ! I always like to clarify the terms/defintions in order to avoid any misunderstanding or even misleading on the exam. Your are so kind in helping the clarfication !
Well, when I need help, you will do the same for me too right?!! That’s the reason we are here
derswap07, I am glad to help others as long as I have a good understanding of the subject issue and I have enough time. I know most candidates shall work (either at office or home) as well as study, especially for those study alone like me. On the other hand, I have some benefits in responding to the issues on this forum because they are very good testings to me. I shall try to respond as clearly/tangibly as possible when responding and this may help myself in answering the questions on AM exam too. I like to know why (it is so), how (to apply those theories/formula appropriately) and what (are the features/characteristics/definitions) while I hate “pure memorizations”. Anyway, let help each other. TKVM again !
This exam is all about understanding. Applying formulas is a part of it but pure memorization is not going to lead you anywhere. Concepts have to be clear. I concur with you so far as the learning process is concerned, and helping each other out. I am happy to see that some Afers who passed are still here and trying to help. I really appreciate them !!!
To those Afers who passed are still here and trying to help, I respect you and admire you !