MFE is a 3 hour long exam with no breaks in between. It consist of 30 multiple choice questions. MFE test theoretical basis of financial models and the application of those models to insurance and other financial risks. It is a little advanced level co...
China Aviation Oil (Singapore) Corporation Ltd. (CAO) was involved in the biggest scandal of the city-state of Singapore since the Nick Leeson case (1995), in which Baring Bank collapsed and lost around $1.3 billion in speculative trading. Following losses of around $550 million, CAO filed for bankruptcy in November 2004. Improper application of accounting principles, and inadequate [...]
A Synthetic Credit Portfolio trader, Bruno Iksil, was given the title of the “London Whale” in the April 6, 2012 issue of the Wall Street Journal and Bloomberg. (Hurtado) This case study focuses on the reasons for that article and the series of derivative transactions (involving credit default swaps) which cost JPMorgan Chase & Co. [...]
Ceylon Petroleum Corporation (CPC) made oil price hedging deals with several banks in 2007 without employing the proper expertise for such a complex option. When the oil market crashed, the hedging deals’ negative payoff for CPC reached several hundred millions. CPC defaulted on the hedging payments which resulted in the banks taking CPC to International [...]
Random musing of founder – From startup rants and timelines to roadmaps. Every now and then, I end up making a promise that I can’t keep. A week ago I promised ten young startup teams that I would create a dedicate learning page for them that they could use as a reference guide once we were [...]
Startup Crash Course for Entrepreneurs Teaching smart people is always difficult. Teaching them about a subject that they possibly know a lot more than you do is an even bigger uphill task. Over the years I have figured out one approach that tends to work better than others. Take a few core ideas and [...]