Pass!
Today is the day the CFA June 2008 Level 1 result is released!! The pass rate for this year is 35%. And I am very happy that I managed to pass it. I got >70% for all the topics except equity investments which I got only 51-70%. But I am glad that I passed the exam. Congratulations to fellow candidates that passed the exam!! Now I will have to wait till I graduate before I can take the level 2 exams. Hopefully I can still remember all the stuff by then...
Continue Sharing
Ok I got a few question on how good is the Schweser study guides from a few friends. So I think it will be a good idea to share it too. I would say that it covers the main idea pretty well and the practise questions are quite good too. I found a website where you can download it so if you are interested do go and take a look at it and buy it if you feel it is good. The website is www.elitebook.net/cfa.asp you can find other useful study guides there too but I recommend you use the downloadable copies as a sample of the usefulness only and not keep them.
Sharing session
Now that I have taken my first attempt at this year's June CFA level 1 exam, I feel that I should share how I studied for it. I registered for it last december and started studying for the paper in January starting with reading the CFAI Texts completing about 9 out of the 18 readings at end of Febuary. From then I was too busy with my studies and did not manage to study for it. I resumed around May after my school exams and started studying the Schweser study guide which I feel that it is very useful. On the last 2 weeks, I started doing the sample papers and Schweser test material doing a quick revision with the Schweser Secret Sauce book.
The june 08 CFA exam is over!!
Yeah finally today is the day of my CFA level 1 exams.
Just to share some of my experience of it. The exam venue at the Singapore Expo is very crowded. There are almost 6000 candidates and I didn't manage to grab anything to eat for the whole day!! The first paper began at 0900 and there seems to be quite a lot of absentees.. After the morning paper end at 1200, we were released at around 1230 after the proctors collect the papers. There the rush for toilet and then lunch begins. At 1330 we were then asked to enter the venue once again to prepare for the 1400 afternoon paper. At 1700 the paper ended and we are allowed to leave the venue.
Hope that I will pass the exam.
Just to share some of my experience of it. The exam venue at the Singapore Expo is very crowded. There are almost 6000 candidates and I didn't manage to grab anything to eat for the whole day!! The first paper began at 0900 and there seems to be quite a lot of absentees.. After the morning paper end at 1200, we were released at around 1230 after the proctors collect the papers. There the rush for toilet and then lunch begins. At 1330 we were then asked to enter the venue once again to prepare for the 1400 afternoon paper. At 1700 the paper ended and we are allowed to leave the venue.
Hope that I will pass the exam.
Final Rush
Did my two sample exam for my CFA exams and guess what I got only 71% of the required 70%. Looks like I will have to work harder for the last 4 days.
Interesting Finance Related Stuff
I read a news article on Bloomberg of another way for the corporations to "smooth" their earnings during bad times.
Accounting Rule: Statement 159, formally known as the "Fair Value Option for Financial Assets and Financial Liabilities"
This rule issued in February 2007 by the FASB is allowing firms to "mark-to-market" the value of their debts and was lobbied in by major banks.
It is said that Merrill Lynch used this rule to record a $4 billion gain from marking-to-markets its debts which yields raised due to it massive writedowns of its assets.
I must say that the rule allows the financial statements of the firms applying it to look a lot better. The rule allows the marking-down-to-market the value of debts giving rise to unrealised gains. However, decrease in debt value is usually due to higher yield due to higher risk or poorer economic performance. In the current case the banks' massive writedown in assets, credit shortage and credit downgrades. Thus the realisation of these gains is unlikely as the banks are in need of cash.
To argue that the requirement to mark-to-market assets is unfair when debt is not allowed is not really correct. The assets written-down are more likely sold and the loss realised to fund the banks needs. This is compared to debts written down with the realisation of unrealised gains unlikely due to the lack of cash or credit in such times, the gains is more likely reversed.
Accounting Rule: Statement 159, formally known as the "Fair Value Option for Financial Assets and Financial Liabilities"
This rule issued in February 2007 by the FASB is allowing firms to "mark-to-market" the value of their debts and was lobbied in by major banks.
It is said that Merrill Lynch used this rule to record a $4 billion gain from marking-to-markets its debts which yields raised due to it massive writedowns of its assets.
I must say that the rule allows the financial statements of the firms applying it to look a lot better. The rule allows the marking-down-to-market the value of debts giving rise to unrealised gains. However, decrease in debt value is usually due to higher yield due to higher risk or poorer economic performance. In the current case the banks' massive writedown in assets, credit shortage and credit downgrades. Thus the realisation of these gains is unlikely as the banks are in need of cash.
To argue that the requirement to mark-to-market assets is unfair when debt is not allowed is not really correct. The assets written-down are more likely sold and the loss realised to fund the banks needs. This is compared to debts written down with the realisation of unrealised gains unlikely due to the lack of cash or credit in such times, the gains is more likely reversed.
Panic time....
Just completed the afternoon practise paper for CFA. I got only 64% this time round... looks like I have to brush up on my revision a bit more if not I will not be able to pass it this june.
CFA exams approaches!!
It is exactly 7 days to my CFA level 1 exams on June 8. Though I did pretty well on the only morning session practise paper (76%) I did... , I am still feeling pretty insecure. If I were to fail or the paper is harder then the practise paper, I will be screwed but I am so bored of studying anymore. Which is the reason I am blogging now, so that I don't need to study lol. Lets hope for the best for all the candidates including me.
Weekly Market View
I would say that the better then expected economic performance of the US will have an impact on the interest rates. My view is that it will only be raised towards the end of the year as the mortage foreclosure problems and the threat of a recession are not yet over. I expect the oil price to be around 125-130 in the next week following the likely strengthening of the US dollar.
First Post!!
Thought I should start out a blog to write about my route in the field of finance and maybe allow me to learn more about myself. Hopefully a few years down the road I will be able to see how much I have learnt when I read through this.
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