Topic wise instead of AIMs order

[Steve Jobs]

If I'm not wrong, I remember that there was some discussions regarding arranging the study materials in topic-wise instead of the AIM based order. Any updates regarding that?

 

[Suzanne Evans]

Steve Jobs,

I know this was discussed previously, however this will not be implemented this year. In order to order them topic wise, it will require much more time and efforts. If we decide to implement the above, we will definitely announce it on the forum.

Thanks,
Suzanne

 

[David Harper CFA FRM]

It's still on the table for 2013 videos, where I think it makes a lot of sense. Thanks,

 

[Steve Jobs]

Thanks, it would be helpful.

 

[David Harper CFA FRM]

Steve - if you want my candid view, given GARP's methodology (i.e., sourcing questions first from practitioners with a secondary vet against the AIMs, and with unclear rigor) it would be superior to organize by topics. The challenge is that many (not all) candidates appear to want organize by the AIMs; understandably since GARP publishes them. Put another way, it's the difference between "buying criteria" (what people think they want) and what's actually good for them.

It's also discussion we had earlier this week with GARP: my position is that GARP creates a bit of a problem by issuing detailed, granular AIMs yet administering the exam with a primary lean on practitioner sources (I cited the CFP as one end of the spectrum: the CFP issues a set of concepts without granular, AIM-like specifics. The CFA would be at the other end of the spectrum, except the CFA has far more rigor to its LOs, than the FRM to its AIMS). I told them the most common question we get is, "will this [something] be tested on the exam?" But given the AIMs are more like guidelines than definitive references (and, in some cases, lacking internally consistency due to various authors), the most honest answer I should give most of the time is, I can't know. Which has some advantages. But makes review by concept arguably more appropriate.

 

[Steve Jobs]

Hi David, thanks for your efforts in discussing it with GARP.

I find the range of materials very broad and topics overlapping to the extent that I can't study and understand without first rearranging the topics. For section 3 of part 1, I categorized the topics into the below categories. Even more, I also categorized the practice question of each topic into Subtopic determined by myself(instead of AIMs) so that I can review all the question of each Subtopic together. Let me know if you guys have any remarks? Have you done any thing similar before?

Category
No. Topic
Sub-Topic



Forward Rates

24 Determination of Forward and Futures Prices
Forward Price - Commodity/Stock
Forward Price - Currency
Forward Contract Value
Arbitrage Profit
Cost of Carry
Contango-Backwardation

29 Fundamentals of Commodity Spot and Futures Markets: Instruments, Exchanges and Strategies
Trading Futures
Risks in Trading Futures
Delivery Arrangements
Hedge Effectiveness
Arbitrage: Theory

30 Commodity Forwards and Futures
Cash and Carry Ex.
Forward Price Calc.
Forward Price Curve
Other
Commodity Spread
Stack and Roll
Basis Risk
Contango-Backwardation

Futures Trading

21 Mechanics of Futures Markets
Arbitrage Profit
Maintenance Margin
Diff. btwn Long & Short Positions
Futures Contract Characteristics
Clearing House
Order Types

22 Hedging Strategies Using Futures
Exposure to Basis Risk
Hedge Ratio
Beta
Tailing the Hedge
Buy Short or Long Futures?
Overall profitability of hedging

Bonds

23 Interest Rates
Discrete to Continuous
Annual Continuous to Discrete
Bond Price
Bond Yield
Bootstrapping Spot Rates
FRA Payoff
Forward Rates
Convexity
Spot Rates(Annual Compounding)
Theories

25 Interest Rate Futures
Bond - Accrued Interest
Bond - Cash Price
TBill - Quoted & Cash Price
CTD
Duration-Based Hedge
Arbitrage
FRA
Euro-Dollar

32 Corporate Bonds
Trustee Responsibilities
Investment banks Responsibilities
Claim Amount on Bankruptcy
Equipment Trust Bonds
The Call Option for Bonds
Credit Risk(Default, Spread)
Rating
Event Risk
Income Bonds






Other

20 Introduction (Options, Futures, and other Derivatives)
Options: Pay off and Profit
Forward Contracts: Pay off
Exposure & Hedging
Futures Payoff (and Margin)
Speculation with Futures
Speculation with Options
Arbitrage
Difference between Futures and OTC
Derivatives
Market Maker

26 Swaps
Interest Swap Value: Bond
Interest Swap Value: FRA
Currency Swap Value: Bond
Currency Swap Value: FRA
Comparative Advantage
Currency Swap: Theory
Interest Swap: Theory
Other Types of Swaps
31 Foreign Exchange Risk
Currency Exposure - No Hedging
Currency Exposure - Hedging
Net Asset-Laibility:Theory
Interest Rate Parity (IRP)

To be studies with other sections of part 1


Section 1
33 The Rating Agencies

Section 4
27 Properties of Stock Options
28 Trading Strategies Involving Options