@analyst0719
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Up9
Time tranching has more to do with setting up tranches to suit different investors with different maturity preferences. Investors who preferred to hold bonds with shorter maturities will invest in tranches that accept a lot of mortgage prepayments. So if the underlying mortgage get paid off faster, than the tranche will have shorter lives. Investors who prefer to hold bonds with longer maturities will invest in tranches that accept fewer mortgage prepayments. So these tranches will have longer maturities. Does that make sense?
Up5The job I moved to was a corporate finance manager job for a private equity firm.
Up5I would read the FI section in level III first before jumping back to prior readings in lvl I and II. I believe there are some duration questions. Then again, It’s been a while since I passed Lvl III.
Up5In my opinion, the one thing that’s extremely important from Lvl 1 that flows into Lvl 3 is time value of money. You better know how to solve all those PV, FV, annuity, etc questions. On lvl 3, there’s always a huge essay question that’s worth at least 30% that has to do with some sort of retirement planning. I find it extremely easy to mess up on timelines simply by not knowing whether something happens at the beginning of the year or the end of the year, because the language can be vague. So make sure you know how to solve complex TVM questions.
Up5This is also a poorly written question because it doesn’t consider the interest that you have to pay back on the borrowed funds.
Up4Recruiters really saw my charter as a plus. I got my first six figure job due to the charter, and the next one afterwards.
Up4Ya, for me it was the case. But then again, I have a very diverse background working in various different industries and different roles.
Up4pushups and situps!
Up3Keep it high level. Start with the most important LOS, and ask yourself what are the key concepts I should associate with each LOS.
Up2The CFA institute will post lots of prior year essay questions online. I took over 10 old essay mock exams from the institute (some of them might have even been actual old exams).
Also really refresh time value of money from L1. There will be a significant retirement planning related question that is heavily based on TVM. good luck!
Up2I took off 2 weeks before each level to study and it helped significantly.
Up2For the most part they are the same. The readings are the same. The format in which they are asked may differ. Level 2 and 3 will be in item sets instead of individual questions.
Up2Depends on what you want to transition into. I f it’s still analytics but within the Finance industry than ya, it will greatly help you. A lot of investment mgmt firms are looking for ppl with solid data science skills and finance knowledge.
Up2Think about it, when interest rates are high, you’re going to hold more bonds because you earn a return on it. But when interest rates are low, you’d rather hold money instead of bonds so when interest rates are low, the demand for holding money is higher. But when interests are high the demand for holding bonds, or putting money into a CD, etc is higher. Does that make sense?
Up1More practice exams for sure. I only had about 2 months to study for L2 but I did like 7 practice exams.
Up1You’re good on both of those.
Up1Really depends on your experience. I think staring in Jan for the June exam is fairly good rule of thumb. People who start later than that usually succeed if they already have some industry experience.
Up1Good info, but for lvl 1 but you really don’t need to spend that much time memorize the nuances of what’s different between IFRS and GAAP.
Up0Depends on what your major in university is. If you’re a finance major then there is a lot of overlap so you can condense your time needed to study for the CFA. However if your major’s completely different then deferring to December may be a good idea.
Up04-6 months is a good guideline. A lot of people think just because you work in finance you have a huge edge, not true. CFA curriculum is very academic and a lot of the things you learn in the finance work world are different.
