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Cool, thanks.

Hi David, There seems to be a typo in the PDS for Dowd 3,4,5,7 it gives the tail dependence coefficient as: λu=lima→1Pr[Y>F−1Y(a)∣Y>F−1X(a)]. Instead of λu=lima→1Pr[Y>F−1Y(a)∣X>F−1X(a)].

Thanks for the detailed reply, much appreciated.

Hi David, So you mean by "more responsive to large loss observations" he's referring to both the overcoming of the ghosting effect and the better weighting scheme ?

Thanks @irenab

Hi David, Dowd says that large losses receive a higher weight under age weighted HSIM than under the equally weighted HSIM. I don't understand why this is, my understanding from the notes and Google is there is no special treatment for large losses just each day that passes gets a lower weight...

Thanks for the very detailed reply.

Hi Bionic Turtle team, How do the AIMs for 2014 compare to 2013? I'm specifically interested in part 2, but I'm sure others will be interested in both.

Easy compared to the difficulty of the BT questions, but a challenge none the less in 4 hours. A few questions worth noting that come to mind: - Duration hedging using key rate durations, I didn't have time to think it through. - Given expected future revenues, Beta, market risk premium...

Thanks, I must have overlooked exam E.

Hi Suzanne Evans and David Harper, CFA, FRM, CIPM, Where can I find the 2013 mock exams for p1 ?

Thanks David, Suzanne and team. Your help in the forums and study materials have been invaluable. The new site looks great.

Hi David, I would be so grateful if you could find time to look at this by Friday night. I can imagine how busy you are this week; your help over the past few months has been invaluable. Thanks !

Hi David, I'm having trouble wrapping my head around this statement "More generally, price increases with maturity whenever the coupon rate exceeds the forward rate over the period of maturity extension." Can you give me an idea of why this is ? Thanks !

Simply put, don't put half circles or cross on the scantron.

Your'e welcome. But don't do ii, that is a recipe for disaster. The scantron is very finicky, best not to put any marks on it ither than your name and ID in the designated spots and full dark circles for answers. If you want to return to a question just cicle it on the exam paper or draw and...

Hi Johnny, From experience, you are provided with a few sheets of scratch paper to do your work on, but all answers must be marked on the scantron sheet. Nothing written on the exam paper is graded. Don't spend too long on a single question, come back to it, after all each question is equally...

Thanks David !

Please ignore. I (think) I get it now, funny how that happens after I've posted it. The comparative advantage is because AAACorp can borrow 1.2% less than BBB in the fixed market vs only .07% lower than BBB in the floating. Thus AAA is "stronger" in fix than floating compared to BBB. At the...

Hi, Can you quickly clarify for me how to determine a comparative advantage ? I simply don't get it. As per Hull 7.4: Company | Fixed | Floating AAACorp | 4.0% | LIBOR -0.1% BBBCorp | 5.2% | LIBOR + 0.6% I only see the absolute advantage.