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I think with David experience he should be able to throw some light on what kind of marks (in absolute terms out of 80) do you need to pass with top (1 and 2) quartiles? - when we get an easy paper - from reading over here .. 90% of my answers match other on this forum - but then these ppl as u...

Yeah that is true - lot of sweets and chocolates in your mouth :) - last time I thought I will just pass --- but still got 1st quartitle on all sections - I guess lot of ppl get a huge portion of the paper wrong and ofcourse they are least interested to discuss - ppl over here are serious so I...

However, I do think this time as the paper was relatively easier - one needs to score atleast 60 / 80 (75%) to pass - so maybe 4 questions wrong each section allowed .. and hence 1st quartile I believe would probably be 1 - 2 mistakes at the max per section.

i am reallly really sad - as I got the PD wrong for the other question -I selected 16% earlier .. but changed it to 20 % .. same as u did :(

As far as I understand - it is always buy targeted firm and sell acquring firm

I changed from 16 % to 20 % at the last min - another one bites the dust :(

I think OAS is an output not an input - shouldn't the answer be ? Monte Carlo simulation takes into account the path that interest rate takes to get to where it is

Hi David, however, my issue is with the wording of the question itself - before pointing to the choices itself :mad: - it clearly said - "with an instrument which has negative duration" Surely going Long / Short can not constitute as an - instrument ?

I think there was an option in regards to - path dependence - i.e was the correct option I believe

However, my issue is with the wording of the question itself - before pointing to the choices itself :mad: - it clearly said - "with an instrument which has negative duration" Surely going Long / Short can not constitute as an - instrument ?

I am also sure - there was another value given? :confused:

Was it short a put option on IO strip or go long a put option on IO strip? I am not sure - but I am seeing different option / answer choices in the previous conversations - where did the buy part come from?

apologies what I meant by above is that - IO strip is an instrument (maybe that is what they refer to) which has a negative duration itself

Hi Emer - Isn't there another way to look at this question? If you concentrate on the wording - it says - with an instrument which has negative duration. Let us divide and look So if you want to hedge - ofcourse you will buy a put option And the second part wanting to use a negative...

Can anyone pls comment on the question - A manager wants to hedge his fixed income portfolio with an instrument which has negative duration? Is it a) Buy the put option on the zero b) Buy the put option on IO I have a strong feeling after reading the above that b option is wrong now - I...

I know I might be going crazy now after reading the posts above :) - one question - I am not sure where I am imagining this from? But wasn't the question regarding - Performance of a TBA with changes in interest rate with respect to the normal fixed income portfolio? - If not - I got it really...

I know I might be going crazy now after reading the posts above :) - one question - I am not sure where I am imagining this from? But wasn't the question regarding - Performance of a TBA with changes in interest rate with respect to the normal fixed income portfolio? - If not - I got it really...