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Hello, I was wondering if you had pdf versions of the 2011 and 2012 GARP AIM statements. I am brushing up on a few topics for an interview and I was hoping to be able to look over the AIMs to help me locate everything I may need to review. Thanks!! Shannon

Hi David, Now that I have passed part 2 of the FRM I am considering studying for the CFA. I REALLY over studied for the FRM. I was in the top quartile for 8 of the 9 sections and 2nd quartile in the "current events" section of part 2. I dont really regret it because I think I got a lot more...

Hi Everyone, Now that the FRM is over, I am looking for a new position. I live in New York City and am not begging anyone on here for a job, but rather asking if anyone has used any recruiters in the past or resume builders that have generated results. Any help would be greatly...

Hi David, Now that FRM studying is done, I was considering doing the CIPM. I do not have the time (or the desire) to do CFA right now, but I heard that the amount of studying for the CIPM was relatively small compared to the FRM. Is this a worthwhile designation or would my time be better...

Hi David, I have certainly learned a lot from you and the other people in this forum. Going forward, could you recommend any other forums where we could ask somewhat dumb questions without asking our superiors and looking foolish? For instance, I am at work and looking at a report right now...

If I passed part 1 and part 2, but have not officially been designated as a Financial Risk Manager, how can I put this on a resume? There is something about submitting your work history and needing to be approved before we are supposed to use the designation. I would like to get my resume out...

Hello, Every once in a while, I see an old practice question that simply uses the formula: spread = PD*LGD. Is there ever a case where this is not a viable answer to a problem? I know this is extremely vague, but sometime it seems like the most simple solution is best and other times it...

Hello, The idea of the swap makes enough sense, but what in the world does the recovery rate represent? The example in the book is horrible. It says if a stock goes down from 100 to anything less than 75, that we get paid notional*(1 - RR). Is the "recovery rate" just the current value of...

Hello, I read somewhere that there is a multiplier on specific risk. Is there any kind of a max function or multilpier that applies to specific risks (like market Var or stressed VaR)? Thanks! SHannon

Hello, Do these two terms mean the same thing? If not what is the difference? Also, what does it mean when it says base servicing is money the "must be held by the servicer of the loan"? I thought this was at least in part considered a payment to the servicer for his services. Is this not...

In the chapter, it always assumes that the future spot rate is going to go up. All of the RN probs of going up are higher than the ones going down (positive drift). This, in turn makes the option less valuable than its expected value. If, however, the spot rates were favored to go down...

What exactly is K? Is it a percentage? Is it a dollar amount? Is it comparable to a risk weight? Is it comparable to the 8% in the standardized approach? It is mentioned a few times but it always seems to be in circular references. Thanks! Shannon

Hello, In the notes it makes a distinction between "disclosed reserves" as being tier 1 capital and "general loan loss provisions" and "asset valaution reserves" as Tier 2. I know this might be splitting hairs, but what is the difference between a "disclosed reserve" and the other two types...

Hello, As I was reading the chapter on hedge funds something looked strange. It has been mentioned several times that shorting assets is a way to gain leverage. However, in the example in the text, and in the notes, why would we have to give 10,000,000 to a prime broker so that he can sell...

Hello, I thought I understood the concept of what an unencumbered asset is, but this section concernign the NSFR is throwing my ideas for a loop. Does this just mean that the loan, bond, etc is not pledged for collateral? For instance, the RSF factor for an "unencumbered residential...

Hello, I was just wondering if there was a last minute formula sheet that you recommend we look over. Thanks! Shannon

Hello, Under Basel III, does the IRC include the CVA adjustments or are these treated seperately? I am reading some of this from Schwesser. The idea makes perfect sense but they do a TERRIBLE job at tying everything together. It says that it is a stand alone charge, which sounds like the...

Hello, In the notes it says that ES is the probablity weighted average of the tail losses, yet the way we always calulate it assuming that all of the "slices" have equal weight. Is ES defined as equally weighting the slices or is this just a simplification that Dowd makes? Is there an...

Hello, It was said that debt from international banks should never be rated higher than the sovereign that they are incorporated in. Does this also apply to corporates that are in other countries, (say Teva Pharmaceuticals, that is incorporated in Israel)? Thanks! Shannon

Hello, Please excuse me for the really bad question, but how exactly Did Rusnack use a prime brokerage account to make trades for Allfirst? I just dont know the mechanics of how this works. Did he tell BofA and Citi to make trades for him or did he trade on behalf of the two banks? Thanks...