Of Equities, Bonds, and Derivatives

T-7 days for my CFA Level I Exam, and I still have the time to type this out! Bonds are just damn frustrating, with so much complex instruments like call, puts, benchmarking, discounting, convexing and etc etc etc.

Well, the learning experience while taking CFA has broadened my knowledge on the financial instruments available, and it is just amazing that with the level of knowledge and valuation methods available, there can still be financial mishandling like that of the recent subprime mortgage problem. Do note that this was a small section covered under Collateralized Mortgage Obligations in Level I. A financial instrument meant to benefit the investors have instead produced a double-edged knife affecting liquidity of financial companies worldwide. This goes to show how it is the people that matters and how people use their knowledge and resources responsibly. “With power, comes great responsibility”, these are the phrase I remembered from Spider-man.

Speaking of Spider-man, several of my cousins seems to be extra huge fans of Marvel, one even bought their stock and earned from it. Me? I am more a fan of Japanese animations like Bleach and Naruto. Maybe it’s got to do with my upbringing and surroundings. Since young, I have been reading more HK comics like “Dragon Tiger Gate” or “Tiger Wong” as it is known in Indonesia.

By the way, as a side note, I will be returning to Singapore tomorrow (2nd of June) and will be returning to Indonesia on 23rd of June.


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