For MAX PFE question, if we check David's Practice Question: P2. Credit-Global Topic Drill, 207.3 - it says MAX PFE occurs approx 1/3rd of lifetime of. As I remember CDS graph was showing 5 year maturity and the graph peaked @ approx 1.67 years.. so would CDS be the right answer then..?
just 2 weeks to exam and I am naturally anxious about part2 new AIMS videos, practice question pdfs, current issue notes not available yet, so I am sort of compelled to ask again (really sorry for that) - by when would these course materials be made available?
Hi Daivd/Suzanne,
May I know by when practice questions (pdf files) for new chapters be available for Credit Risk, Market Risk Tuckman chapter 7 and also Investment Risk
Regards,
- Prajwala
Thanks for clarifying David.
PS:
Sorry for not being clear in my question.
The sentence from T6 notes is "The problems with rehypothecation is another driving force behind cash collateralisation becoming increasingly the standard"
The sentence "cash posted as collateral can be used by receiver...
Hello David,
Can you please explain why there may not be any risk of rehypothecation with cash collateral? (referring to last para of page 155 in T6 pdf)
The cash posted as collateral can be used by receiver to lend, purchase other assets or re-post as collateral for it's own negative MtM...
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