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    GARP 2021 Pre Study Pack Q2 (Repo)

    Thanks David! Very helpful thread :)
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    GARP 2021 Pre Study Pack Q2 (Repo)

    Hi all, Here is the question from the pre study pack (2021): A bank buys a bond on its coupon payment date. Three months later, in order to generate immediate liquidity, the bank decides to repo the bond. Details of the bond and repo transaction are as follows: Notional value (USD) 100,000...
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    PFE of CDS and Cross Currency SWAP

    This is quite an interesting point. After covering the topic about Covered Interest Parity Lost, I recalled that Cross-currency basis swaps actually exchange notionals (at maturity) based on the initial spot rate (and not the prevailing spot rate at maturity). So if one is paying the higher...
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    GARP 2016 Q61

    Hi all, I was just going over a past exam and stumbled upon this question. If you have already had the discussion on this question, could you please redirect me to the relevant forum (I can't seem to find this specific question in the past paper forum discussions). Here is the question: You...
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    GARP Practice Exam 2017 Q9 (Part II)

    Hi there, I just wanted to see if I could ask one of the questions from a past Practice exam (2017). Here is the question: Note: Updated by Nicole to copy/paste text of question for search purposes A wealth management firm has a portfolio consisting of USD 48 million invested in US equities...
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    Key rates defined in terms of par yields infer the hedge position

    Top-notch explanation @David Harper CFA FRM ! I think I got it now... it took a while :eek:
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    Key rates defined in terms of par yields infer the hedge position

    Hi David On page 170 of VRM, GARP says that when key rates are defined in terms of par yields, one can immediately calculate the position necessary to hedge a portfolio once the exposure of the portfolio to the key rates are calculated. I think I am struggling to see why all the changes in...