Roshan Ramdas
Active Member
Not true,...Basel's expectation is that the LCR be greater than or equal to 100%I think LCR question is 73% since basically it cant be more than 75%
Not true,...Basel's expectation is that the LCR be greater than or equal to 100%I think LCR question is 73% since basically it cant be more than 75%
Rams y u deleted your answers ..we could discuss many other questions as well..
I selected consumer creditI remenber a question concerning the golin reading and credit analyst who use just the quantitativ credit analysis in their decision and we had to guess the type of conterpart. I selected the answer customer
and an other sub question of this block where I select that the merton model was not appropriateThe question about the PD over 3 year which were 3% with the internal model, and we had to compare it with the Information given by the spread and the cumulative PD Matrix of a Rating agency.
I selected that the 3% was the lowest PD among the three measures
Hey it's mentioned for retail customers they have automated process, so it can't be consumer. I put Non financial but not sure as analyst is from a big lender. either Financial or Non financial companyI selected consumer credit
i selected consumer as well....do one thing please keep posting what ever questions you all remember..i have posted around 54 questions already...if we can increase the sample to say 70 questions...then we can estimate the MPS here only on BT.I selected consumer credit
For difficulty here at my testing site Bangalore ppl are saying for good amount of Q they have no clue. It include some ppl who are appearing for 3rd timeHi Nicole/David,
Based on your experience, do you always get this kind of "very Difficult" feedback from students or are we a "bunch of ill prepared losers"
Now getting this feeling that I read Q wrong. . Can you please correct if I am wrong Q is asking what is the day to day task of CreditA in a big lender?i selected consumer as well....do one thing please keep posting what ever questions you all remember..i have posted around 54 questions already...if we can increase the sample to say 70 questions...then we can estimate the MPS here only on BT.
I think the questions asked us that in case of which of the following individuals does the analyst cannot rely on qualitative analysis only..Now getting this feeling that I read Q wrong. . Can you please correct if I am wrong Q is asking what is the day to day task of CreditA in a big lender?
Yes I misread it thenI think the questions asked us that in case of which of the following individuals does the analyst cannot rely on qualitative analysis only..
The reason why I selected consumer credit was because there was a mention of the usage of statistical tools and (I think) scoring methodologies and this matches the profile of individual (consumer) credit. I may be wrong here,....but there is a write up in paragraph 2 page 21 (GARP's credit risk book) that leads me to believe that that this was the answer.Hey it's mentioned for retail customers they have automated process, so it can't be consumer. I put Non financial but not sure as analyst is from a big lender. either Financial or Non financial company
So 50/80 is safe?
I think in question 2 we both selected the same answer....Hi @monumonumental - I agree with most of the answers on your initial thread and some, I don't know myself. Could you clarify my comments (in blue) for the below questions, please.
2)We use internal data for body and distributions to model tail in measuring of loss severity. I selected answer which made mention about internal loss data for body & external loss data for tails.
4)Leverage ratio was around 2.94% Donot remember answer but used formula-> (Tier 1 Capital/Asset Weighted Exposure).The numerator should have Total Tier 1 Capital (and not just common equity component).
5) 73% was LCR .....this has already been discussed on this thread.
12)A question on trade repository where i selected that they are to protect unsophisticated investors from cheating.......Disagree.I selected option of regulators being able to control risk concentration.
13)A question on transaction liquidity where i selected the 1st option.....not sure which question ??
18)Graph of IO strip..i think it should be D as interst component decreases over time......I selected the line which had the biggest drop,....not sure if this was D.
20)Diff between OAS/NS/ZS.....I selected the option where OAS was deemed relatively superior as it captures prepayment risk.
21)a question on EL where i think the answer was 60......which question was this ?
30)Few questions on CSA where stronger party will want one CSA ......there was a few questions on funding liquidity risk, don't remember the answers. I think that the reason why I may have rejected the one way CSA option was because the option made mention that the one way CSA would reduce the counterparty exposure for both the institution and hedge fund. In my view, a one way CSA will not reduce the counterparty exposure that the hedge fund faces to the institution.
40)A question on holee model..i am not sure about the answer......the answer had time dependent risk premia (i.e., drift)
45)Solvency vs Basel..i think i got it correct....I selected the one which stated VAR came with varying confidence levels for different risk classes and Solvency had a single measure for company as whole ?
4)I think we are asked to use Basel 3 and i think we should use 10.5% of RWA instead of 8%in Basel 2.Hi @monumonumental - I agree with most of the answers on your initial thread and some, I don't know myself. Could you clarify my comments (in blue) for the below questions, please.
2)We use internal data for body and distributions to model tail in measuring of loss severity. I selected answer which made mention about internal loss data for body & external loss data for tails.
4)Leverage ratio was around 2.94% Donot remember answer but used formula-> (Tier 1 Capital/Asset Weighted Exposure).The numerator should have Total Tier 1 Capital (and not just common equity component).
5) 73% was LCR .....this has already been discussed on this thread.
12)A question on trade repository where i selected that they are to protect unsophisticated investors from cheating.......Disagree.I selected option of regulators being able to control risk concentration.
13)A question on transaction liquidity where i selected the 1st option.....not sure which question ??
18)Graph of IO strip..i think it should be D as interst component decreases over time......I selected the line which had the biggest drop,....not sure if this was D.
20)Diff between OAS/NS/ZS.....I selected the option where OAS was deemed relatively superior as it captures prepayment risk.
21)a question on EL where i think the answer was 60......which question was this ?
30)Few questions on CSA where stronger party will want one CSA ......there was a few questions on funding liquidity risk, don't remember the answers. I think that the reason why I may have rejected the one way CSA option was because the option made mention that the one way CSA would reduce the counterparty exposure for both the institution and hedge fund. In my view, a one way CSA will not reduce the counterparty exposure that the hedge fund faces to the institution.
40)A question on holee model..i am not sure about the answer......the answer had time dependent risk premia (i.e., drift)
45)Solvency vs Basel..i think i got it correct....I selected the one which stated VAR came with varying confidence levels for different risk classes and Solvency had a single measure for company as whole ?