Finance Interview Guide: Advanced concepts for Markets Role

By Beta IIM Ahmedabad

This book provides an in-depth overview of securitization, asset-backed securities, and advanced trading strategies. Some key points covered in each topic are:

Securitization:

The book covers the basics of securitization, including the benefits and risks associated with this process.It discusses the various types of assets that can be securitized, such as mortgages, auto loans, and credit card receivables.The book also delves into the legal and regulatory framework for securitization.

Asset-Backed Securities:

The book provides a detailed overview of asset-backed securities, including their characteristics, benefits, and risks.It discusses the various types of ABS, such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized debt obligations (CDOs).The book also covers the process of creating and structuring ABS, as well as the role of credit ratings agencies.

Mortgage-Backed Securities:

The book provides an in-depth overview of mortgage-backed securities (MBS), including their structure, characteristics, and risks.It discusses the various types of MBS, such as pass-through certificates, collateralized mortgage obligations (CMOs), and stripped mortgage-backed securities.The book also covers the role of government-sponsored entities such as Fannie Mae and Freddie Mac in the MBS market.

Credit:

The book covers the basics of credit risk, including credit ratings, credit spreads, and default probabilities.It discusses the various types of credit instruments, such as bonds, loans, and credit default swaps (CDS).The book also covers credit risk modeling, including structural and reduced-form models.

Options - Advanced:

The book covers advanced option strategies such as bull spreads, bear spreads, box spreads, butterfly spreads, and straddles.It also covers option combinations, such as call spreads, put spreads, and strangles.The book provides an in-depth overview of option pricing models, including Black-Scholes and binomial models.

Trading Strategies:

The book covers various trading strategies, including basis trades, steepeners, flatteners, barbells, and bullets.It also covers delta hedging, rolling hedges, and the hedge ratio.The book provides an overview of mezzanine debt, contango and backwardation, swaptions, and American Depository Receipts.

Regulations:

The book covers key financial regulations such as the Glass-Steagall Act, the Volcker Rule, the Smoot-Hawley Tariff Act, and the Dodd-Frank Act.It discusses the causes and consequences of financial crises, including the Great Depression, the Savings and Loan Crisis, Long-Term Capital Management, and the Asian Currency Crisis.

Overall, this book provides a comprehensive overview of securitization, ABS, MBS, credit, options, and trading strategies, making it a valuable resource for finance professionals and students al

• Format: Paperback
• Language: English
• ISBN: B0C1JK6KTW
• ISBN13: 9798390702055
• Release Date: April 2023
• Publisher: Independently Published
• Length: 60 Pages
• Weight: 0.21 lbs.
• Dimensions: 0.1" x 6.0" x 9.0"