OTC derivatives valuation and risk advisory

OTC derivatives valuation and risk analysis advisory service as a third-party firm in a neutral position. Provides fairness opinions on derivatives proposed by investment banks.

Clients: Financial institutions like commercial banks as an investor.
Competitors: Investment banks as a structured products provider.

The Concepts and Practice of Mathematical Finance 2nd Edition - Mark Joshi

This is a book recommended by RL, an ex-structurer at Société Générale, today. He said to me that this is the best book to understand derivatives from practical and theoretical point of view. I've just ordered it at Amazon.co.jp.

Amazon.com


Amazon.co.uk


Amazon.co.jp


Here is the link to the author's page:
http://www.markjoshi.com/
http://www.facebook.com/pages/Mark-Joshi/109959844817


12/19/2010
Arrived today.

[Schweser] CFA Level 2 2011 Practice Exams Volume 1 & 2

Arrived today.

[Schweser] CFA Level 2 2011 Practice Exams Volume 1 & 2

Ordered today.

CFA Level 2 2011 Practice Exams Volume 1 In Stock
Quantity: 1
Item Price: $ 149.00USD
Total Price: $ 149.00USD
CFA Level 2 2011 Practice Exams Volume 2 In Stock
Quantity: 1
Item Price: $ 149.00USD
Total Price: $ 149.00USD
**Please check out our website at www.schweser.com/help for product availability.**
Subtotal: $ 298.00USD
Freight: $ 28.42USD
Applicable Tax: $ 0.00USD
-------------------------------
Total: $ 326.42USD

Tokyo as the best financial center in Asia Pacific

Japanese government should create a special district in Tokyo Bay area. This district's features are as follows:

Name: New Tokyo Special District
Public Language: English
Currency: Japanese Yen (since JPY is already a global currency)
Mayor: Independent mayor for this special district
Law and Regulations: Basically Japan's existing laws are applied to this area, but less restrict regulation for financial industry and import/export.
Corporate tax: Low and competitive compared to Singapore and Hong Kong

People who can take risk and want to live in international and free environment will come to this area. 

CFA Level II (June 2011 Exam) - Errata

[1] CFA PROGRAM CURRICULUM
CFA Institute - Errata

VOLUME 1 - Ethical And Professional Standards, Quantitative Methods, and Economics
p.23
(Original) Member resides in LS country, does business in MS country; LS law applies,
(Correct) Member resides in LS country, does business in MS country; MS law applies,

p.176
(Original) Answer C is also consistent with the Standards
(Correct) Answer C is not consistent with the Standards

p.347 13.E
(Original) The coefficient of variation, the R-squared, is
(Correct) The coefficient of determination, the R-squared, is

p.431 2.
(Original) b^{^}₂ = regression estimate of b₁
(Correct) b^{^}₂ = regression estimate of b₂


VOLUME 2 - Financial Reporting and Analysis, and Corporate Finance

p.90 EXAMPLE 10
last paragraph
(Original) result in the same return on assets.
(Correct) result in the same debt-to-asset ratio.

p.254
7.
(Original) Under IFRS, Passaic's balance sheet reflects the present value of the defined benefit obligation at the balance sheet date, plus any unrecognised actuarial gains (less any actuarial losses not recognised), minus any past service cost not yet recognised, minus the fair value at the balance sheet date of plan assets.
(Correct) Under IFRS, Passaic's balance sheet reflects the fair value at the balance sheet date of plan assets, minus any unrecognised actuarial gains (plus any actuarial losses not recognised), plus any past service cost not yet recognised, minus the present value of the defined benefit obligation at the balance sheet date.

p.256 31.
(Original) In this case the held for trading securities
(Correct) In this case the held-to-maturity securities

p.257 36.
(Original) (7.5% industry vs. 7.2% SeaBriar for 2006)
(Correct) (7.5% industry vs. 7.2% SeaBriar for 2008)

p.415
(Original) Companies with low (high) earnings quality tend to experience lower (higher) accounting rates of return and relatively lower excess stock returns in future periods.
(Correct) Companies with low (high) earnings quality tend to experience lower (higher) accounting rates of return and relatively lower(higher) excess stock returns in future periods.



VOLUME 3 - Equity Investments

VOLUME 4 - Alternative Asset Valuation and Fixed Income

VOLUME 5 - Derivatives and Portfolio Management

---

[2] Schweser (2011 CFA Level II)

• Practice Exams Volume 1
• Exam 1
• Morning Session
• p.93 57.
• (Original) the COGS for 201X would be ($ millions):
• (Correct) the COGS for 20X1 would be ($ millions):
• Exam 3
• Afternoon Session
• p.261
• (Original) G = growth rate = g/(r-g)
• (Correct) G = growth factor = g/(r-g)
• p.263
• (Original) Both methods (Note: equity and acquisition method) result in the same net income, so Statement 1 is incorrect.
• (Correct) Net income under equity method (+45% net income of acquired company) is lower than the one under acquisition method (+100% net income of  acquired company), so Statement 1 is incorrect.
• Practice Exams Volume 2
• Exam 1
• Morning Session
• p.26
• (Original) He will leave 2008 EPS and ROI out of his estimates.
• (Correct) He will leave 2008 EPS and ROE out of his estimates.
• p.198 1.
• (Original) Since Gingeria is remotely located,
• (Correct) Since Binaria is remotely located,
• Afternoon Session
• p.60
• (Original) missing
• (Correct) The following description should be added to Exhibit 2: The present value of YD's future operating lease is $57 million with interest expense of $4 million.
• p.62
• (Original) He has assembled the following annual data on four of the oil and gas stocks in the portfolio.
• (Correct) He has assembled the following annual data on three of the oil and gas stocks in the portfolio.
• p.221 90.
• (Original) IFRS accounting standards allow the parent to translate an inflation-adjusted value of the nonmonetary assets and liabilities of the foreign subsidiary at the current inflation rate,
• (Correct) IFRS accounting standards allow the parent to translate an inflation-adjusted value of the nonmonetary assets and liabilities of the foreign subsidiary at the current exchange rate,
• p.223
• (Original) Note: Capitalizing R&D expense will increase YD's book value. However, the market value used in calculating YD's WACC is not impacted.
• (Correct) should be deleted
• Exam 2
• Morning Session
• p.239 53.
• (Original) Answer: A
• (Correct) Answer: C
• Afternoon Session
• p.116 84.
• (Original) Which of the following statements is least likely regarding this sale?
• (Correct) Which of the following statements is least likely accurate regarding this sale?
• p.123
• (Original) After a through analysis of Targus's future prospects, Alpha Fund's management believes that there is a possible 15% risk of failure for the company.
• (Correct) should be deleted
• Exam 3
• Morning Session
• p.138
• (Original) Luna then reviews TIM's projected commission dollars for the year and decides there are more than enough soft dollars to pat the StockCal, AGF, and Add-Invest Software bills combined.
• (Correct) Luna then reviews TIM's projected commission dollars for the year and decides there are more than enough soft dollars to pat the StockCal, AGF, and Add-Invest Software bills combined.
• p.139 2, 3
• (Original) Gobble Insurance
• (Correct) Broadway Life Insurance
• Afternoon Session
• p.176
• (Original) 74. Fox estimates that the fair value of Target's other assets are $250 million.
• (Correct) 74. Fox estimates that the fair value of Target's PP&E are $250 million.
• p.275 76.
• (Original) The increase/decrease to Hope's investment balance is equal to the investment balance at the beginning of year plus equity income less dividend paid.
• (Correct) The increase/decrease to Hope's investment balance is equal to the investment balance at the beginning of year plus equity income less dividend paid.

• Practice Exams Volume 1 (2010 CFA Level II)
• Exam 3
• Afternoon Session
• p.264 89.
• (Original) Confidence risk represents the unexpected change in the difference between the return of risky corporate bonds and corporate bonds.
• (Correct) Confidence risk represents the unexpected change in the difference between the return of risky corporate bonds and government bonds.
• Practice Exams Volume 2 (2010 CFA Level II)
• Exam 1
• Afternoon Session
• p.222 107.
• (Original) ROE = $195 million / $795 million = 0.245
• (Correct) ROE = $19.5 million / $79.5 million = 0.245

---

[3] CFA Institute 2011 Level II Mock Exam

• Morning Session
• Suburban Publishers Case Scenario
• Exhibit 3
• (Original) Shareholders' Equity (in $-millions) for ...
• (Correct) Shareholders' Equity (in $-thousands) for ...

CFA Level II (June 2011 Exam)

[1] CFA PROGRAM CURRICULUM

8/2/2010-10/31/2010
VOLUME 1 - Ethical And Professional Standards, Quantitative Methods, and Economics

• 8/2/2010-9/22/2010: Ethical And Professional Standards
• 9/22/2010-10/31/2010: Quantitative Methods

8/9/2010 - 12/4/2010
VOLUME 2 - Financial Reporting and Analysis, and Corporate Finance

Omitted:
VOLUME 3 - Equity Investments
VOLUME 4 - Alternative Asset Valuation and Fixed Income
VOLUME 5 - Derivatives and Portfolio Management

[2] Schweser Practice Exams
http://www.schweser.com/cfa/cfa2.php

• Practice Exams Volume 1
• Exam 1
• Morning Session
• 1st: 12/6/2010 - 12/10/2010
• 2nd: 12/10/2010 - 12/11/2010
• 3rd: 12/11/2010 - 12/13/2010
• Afternoon Session
• 1st: 12/13/2010 - 12/23/2010
• 2nd: 12/23/2010 - 12/24/2010
• 3rd: 12/24/2010 - 12/28/2010
• Exam 2
• Morning Session
• 1st: 12/28/2010 - 12/30/2010
• 2nd: 12/30/2010 - 1/4/2011
• 3rd: 1/4/2011 - 1/5/2011
•  Afternoon Session
• 1st: 1/5/2011 - 1/8/2011
• 2nd: 1/8/2011 - 1/8/2011
• 3rd: 1/8/2011 - 1/9/2011
• Exam 3
• Morning Session
• 1st: 1/9/2011 - 1/11/2011
• 2nd: 1/12/2011 - 1/13/2011
• 3rd:  1/13/2011 - 1/14/2011
• Afternoon Session
• 1st: 1/14/2011 - 1/19/2011
• 2nd: 1/19/2011 - 1/25/2011
• 3rd: 1/25/2011 - 1/26/2011 
• Practice Exams Volume 2
• Exam 1
• Morning Session
• 1st: 1/26/2011 - 1/30/2011
• 2nd: 1/31/2011 - 2/1/2011
• 3rd: 2/1/2011 - 2/5/2011
• Afternoon Session
• 1st: 2/5/2011 - 2/10/2011
• 2nd: 2/10/2011 - 2/12/2011
• 3rd: 2/12/2011 - 2/13/2011
• Exam 2
• Morning Session
• 1st: 2/13/2011 - 2/16/2011
• 2nd: 2/16/2011 - 2/18/2011
• 3rd: 2/18/2011 - 2/19/2011
• Afternoon Session
• 1st: 2/19/2011 - 2/24/2011
• 2nd: 2/24/2011 - 2/26/2011
• 3rd: 2/26/2011 - 2/27/2011
• Exam 3
• Morning Session
• 1st: 2/27/2011 - 3/6/2011
• 2nd: 3/7/2011 - 3/9/2011
• 3rd: 3/9/2011 - 3/10/2011
• Afternoon Session
• 1st: 3/10/2011 - 3/11/2011, 4/1/2011- 4/2/2011
• 2nd: 4/2/2011 - 4/3/2011
• 3rd: 4/3/2011 - 4/3/2011
• Practice Exams Volume 1 (2010)
• Exam 1
• Morning Session
• Afternoon Session
• 1st: 4/3/2011-4/5/2011
• 2nd: 4/6/2011 - 4/7/2011
• 3rd: 4/8/2011 - 4/9/2011
• Exam 2
• Morning Session
• Afternoon Session
• 1st: 4/9/2011 - 4/12/2011
• 2nd: 4/12/2011 - 4/13/2011
• 3rd: 4/13/2011 - 4/14/2011
• Exam 3
• Morning Session
• Afternoon Session
• 1st: 4/15/2011 - 4/17/2011
• 2nd: 4/18/2011 - 4/19/2011
• 3rd: 4/19/2011 - 4/20/2011
• Practice Exams Volume 2 (2010)
• Exam 1
• Morning Session
• Afternoon Session
• 1st: 4/21/2011 - 4/23/2011
• 2nd: 4/24/2011 - 4/25/2011
• 3rd: 4/26/2011 - 4/27/2011
• Exam 2
• Morning Session
• Afternoon Session
• 1st: 4/27/2011 - 4/30/2011
• 2nd: 5/1/2011 - 5/2/2011
• 3rd: 5/2/2011 - 5/3/2011
• Exam 3
• Morning Session
• Afternoon Session
• 1st: 5/4/2011-5/5/2011
• 2nd: 5/6/2011-5/7/2011
• 3rd: 5/7/2011-5/8/2011

[3] CFA Glossary
Check: 5/15/2011-5/28/2011

[4] Schweser's QuickSheet (CFA 2010 Level 2)

Check: 5/28/2011-6/2/2011

[5] CFA Institute

• 2010 Mock Exam
• 1st: 5/8/2011-5/11/2011 (50/60+47/60=97/120=80.83%)
• 2nd: 5/11/2011-5/14/2011 (59/60+60/60=119/120=99.17%)
• 3rd: 5/14/2011 (60/60+60/60=120/120=100%)
• 2011 Mock Exams
• Early May
• 1st: 5/29/2011
• Review Morning session (45/60 = 75%) 5/30/2011
• Review Afternoon session (49/60 = 81.7%) 5/31/2011
• 2nd: 6/3/2011
• Review Morning session (59/60 = 98.33%) 6/3/2011
• Review Afternoon session (58/60 = 96.67%) 6/3/2011
• Sample Questions
• 1st: 6/2/2011 (16/18=88.9%)
• Sample Exams
• Open - 9/6/2010
• (did NOT try it)

http://www.cfainstitute.org/mycfa/candidate/takingexams/dates/Pages/index.aspx

[6] Exam admission tickets
Late April 2011 Exam admission tickets available online

[7] CFA Level II Exam date (Tokyo)
5 June 2011

June 2011 Level II CFA Exam - CFA exam registration

I've ordered CFA exam registration + eBook and print.

2011 June CFA Level II Exam: $745.00
Level II Print Curriculum June 2011: $225.00
Level II eBook Curriculum June 2011: $185.00
Discount: $495.00
Shipping: $20.00
Tax: $0.00
--------------------
Total: $680.00

June 2010 Level II CFA Exam Result (Fail)

I've received email from CFA Institute today that said I've failed the exam; it's very disappointing but this is the reality. I had did my best and there is nothing to be shamed. It was just 6-month prepareation after Level I. Most importantly, we had a lovely baby girl in Janurary! My family comes first.

I will denitely review my results and start studying for next exam. I will never give up CFA.

The email from CFA Institute is as follows (parts I changed are indicated by gray, blue and red characters):
----------
XXXXXXX


Dear XXX XXX,

Your results for the June 2010 Level II CFA exam are below. The pass rate for June 2010 Level II was 39%. If you have questions or comments, please contact us.

Level II: Fail

The table below illustrates your subject matter strengths and weaknesses. The three columns on the right are marked with asterisks to indicate your performance on each question or topic area.

Item SetQ#TopicMax Pts<=50%51%-70%>70%

-Alternative Investments18--*

-Corporate Finance36--*

-Derivatives36--*

-Economics18*--

-Equity Investments72-*-

-Ethical & Professional Standards36*--

-Financial Reporting & Analysis72-*-

-Fixed Income Investments36--*

-Portfolio Management18--*

-Quantitative Methods18*--



We have divided the full group of failed candidates into ten approximately equal score bands. Your score band below shows how your overall score on the exam compares with all other failed candidates.

For example, if your reported score band is 1, you scored in approximately the bottom 10% of failed candidates. If your reported score band is 2, your score was within the next band width ranging from approximately the bottom 11% to 20% of failed candidates. If your score band is reported as 10, you scored in the top 10% of all failed candidates.

Your score band: 9

Candidate registration will be available 27 July on the CFA Institute website. All candidates may register for an upcoming examination. Please note that heavy traffic due to results may slow our online registration system on 27 July.

Any alteration of this e-mail message is strictly prohibited and may be grounds for disciplinary action by the CFA Institute Professional Conduct Program.

This e-mail message and any attachments it contains are confidential and are intended solely for the use of the intended recipient. If you are not the intended recipient, you are hereby notified that you received this e-mail message in error, and that any use, dissemination, distribution, printing/copying, or forwarding of this message and any attachment is strictly prohibited. If you received this e-mail message in error, notify info@cfainstitute.org immediately, and delete the message and any attachment from your system. Thank you for your cooperation.

Mastering MATLAB 7

I've just started reading today to master MATLAB 7!

ZoomIt

This is really useful software to zoom on Windows. This must be useful tool during your presentation.

• No need to install; when you download the file and extract it, you will find ZoomIt.exe. All you have to do is run the exe file.
• How to use:
• Ctr + 1: Zoom
• Focused
• Move up/down or left/right
• Left-click to hold the screen
• Then you can draw and type
• Esc: Back to normal
• Ctr + 2: Draw without zoom
• Ctr + 3: Start timer

http://technet.microsoft.com/en-us/sysinternals/bb897434.aspx

CFA Level 2 June 2010 Exam

I took the exam at Asia University in Musashisakai. It was a bit tough given more calculation problems than expected, but I certainly did my best; I have nothing to regret. I made some mistakes in, say, swap calculation in Morning session and also one section regarding futures in Afternoon session. But I think I did not made a huge mistake. I never lost my control and I just solved problems one after another calmly almost on time.

Let me look back my challenge so far. Right after the Level 1 in December 2009, I had started preperation for Level 2. Then our baby girl was born at the end of January. The most painful thing is that I could not have time with my family at all. Our baby girl is too cute to keep me away from her, however, to have enough time to play with her in the future, I made up my mind to pass all levels asap so I had only 6 month to prepare Level2. My wife takes care of our lovely girl, I do really feel sorry for that. What a farther!

Trying CFA is really great experience for me. Although I passed CMA (securities analyst charter in Japan), I really want to go global as a professional in finance. CFA covers not only US, but also international like IFRS. I thought that CFA is the best way to comprehend finance, rather than MBA. I emphasize on basic theories at this point in time, so I might apply part-time or executive MBA to learn combination of finance and other major like accounting and management/strategy. Furthermore, I do want to study with people with different background. Finance is important for me, but it's not everything.

I never feel that I don't wanna study finance. Taking exams are absolutely stressful, but studying finance gives me wonderful intellectual stimulation. Like I felt in phyics. Most importantly, it's deeply related to my day-to-day job; with theoretical knowledge and experience, I can understand practical matters better and that makes me feel like learning more!

Now I am on my way home. My wife is waiting for me with cold and my favorite beer, Suntory's Premium Malts, and cooked dumpling, gyoza. I really appreciate my family; with my wife and our girl, I could stick to extensive and continuous study. Let's drink, eat, and laugh! We will have fun. Oh, maybe our wonderful girl is sleeping:-)

CFA Exam - belongings

• Admission Ticket
• Map
• ID(Passport, Driver's license, etc.)
• Mechanical pencil
• Eraser
• Extra lead
• Earplug
• Eye mask (for lunch break)
• Financial Calculator
• Battery (for the financial calculater)
• Watch(G-SHOCK)
• Mobile phone (with mobile Suica; electronic money/commuter pass in Japan)
• Lunch box
• Pet bottle (mineral water)
• Snack (chocolate or something sugar-rich)

Unnecessary
• Wallet

Only for December exam
• Underwear for cold protection

Finance Calculator

http://www.arachnoid.com/lutusp/finance.html
http://www.dinkytown.net/java/FinCalc3.html

CFA Level II (June 2010 Exam) - Applied

Applied to CFA Level II (June 2010 Exam) today!

After login,
http://www.cfainstitute.org/

Go to the Enroll and Register page,
http://www.cfainstitute.org/cfaprog/register/

Then select
"Register for an exam"
June 2010

Chose the Level II
CFA Program Level II Registration

You have to fill in a lot of items to finalize your application.

Today is just before the Second Payment Deadline. So it costs as follows:
2010 June CFA Level II Exam $485.00
Level II Curriculum June 2010 $225.00
Total: $710.00

It seems discount is available considering the CFA Institute's fee page: http://www.cfainstitute.org/cfaprog/register/fees.html

CFA Level I (December 2009 Exam) - Passed

I passed the exam! According to CFA Institute, pass rates were 34% and lowest in 5 years (2005:34%). My December 2009 result on
https://www.cfainstitute.org/cfaprog/resources/examdetails/examresults.html
was as follows:

----------
Level 1: Pass
The table below illustrates your subject matter strengths and weaknesses. The three columns on the right are marked with asterisks to indicate your performance on each question or topic area.


Multiple Choice
Q# Topic Max Pts <=50% 51%-70% >70%
- Alternative Investments 8 - * -
- Corporate Finance 20 - - *
- Derivatives 12 - - *
- Economics 24 - - *
- Equity Investments 24 - - *
- Ethical & Professional Standards 36 - * -
- Financial Reporting & Analysis 48 - - *
- Fixed Income Investments 28 - - *
- Portfolio Management 12 - - *
- Quantitative Methods 28 - - *