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lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

High level finance class is a new level of intense
Hardest class in my MBA program by far and the amount and difficulty of material is overwhelming.

Some of the topics:
All aspects of fixed income including duration and convexity
Immunization
Rebalancing
Horizon analysis
Spot, short, and forward rate calculations
APV, FTE, Capital Cash Flow, and WACC Valuation methods
Stockholder-Bondholder conflicts
Options and option strategies
Calculating Black Scholes using the cumulative normal density tables
Binomial Risk Neutral Valuation using Martingale probabilities
Hedging risk using derivatives
Put-Call Parity
Real Options
Bankruptcy process and strategies
Degree of operating, financial leverage

....the list goes on. Studying for this is soul crushing


Doc Fenton
LSU Fan
New York, NY
Member since Feb 2007
52458 posts

re: High level finance class is a new level of intense
Suck it up, b-school boy. You will get no sympathy from me!

Okay... maybe a little sympathy...


Azazello
Duke Fan
Member since Sep 2011
2291 posts
 Online 

re: High level finance class is a new level of intense
I have derivatives next quarter and it's going to kick my ass.

quote:

Binomial Risk-Neutral Valuation using Martingale probabilities


This post was edited on 11/15 at 6:42 am


monteandmakers
LSU Fan
New Orleans
Member since Dec 2014
69 posts

re: High level finance class is a new level of intense
I had a similar class that was way over my head. I think I drained a few of the professors red ink pens over that semester. Thank god for partial credit, somehow ended up with a B.


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arkiebrian
Arkansas Fan
Arkansas
Member since Nov 2006
3025 posts

re: High level finance class is a new level of intense
Good stuff in these classes. The kind of knowledge you can actually make money with. I use what I learned to this day.


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BestBanker
LSU Fan
stuck in a moment
Member since Nov 2011
7390 posts

re: High level finance class is a new level of intense
You gotta love the language huh? Every industry has it's own! Could we suggest Roseto Stone?


lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

re: High level finance class is a new level of intense
When I get problems requiring levering and unlevering Beta or equity returns at varying debt levels, it is like a gift.... Because that is now the 'easiest' material we need to know.

It wasn't too long ago that material was foreign concepts in my first Valuation class.

Overall, I know that I will have learned a tremendous amount in this class but I can also say with certainty that I have no interest to work in Treasury or a trading desk.


lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

re: High level finance class is a new level of intense
For reference, how does this compare to the CFA exam? I assume all of these concepts show up on L2 or L3?


Azazello
Duke Fan
Member since Sep 2011
2291 posts
 Online 

re: High level finance class is a new level of intense
quote:

lynxcat


You headed to Corp Fin, IB, other?


GenesChin
Army Fan
The Promise Land
Member since Feb 2012
29637 posts

re: High level finance class is a new level of intense
quote:

Binomial Risk-Neutral Valuation using Martingale probabilities
quote:





Stochastic processes aren't that bad


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lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

re: High level finance class is a new level of intense
(no message)
This post was edited on 11/19 at 10:50 pm


Azazello
Duke Fan
Member since Sep 2011
2291 posts
 Online 

re: High level finance class is a new level of intense
IB - focused on advisory or MM


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Lazy But Talented
Houston Astros Fan
Member since Aug 2011
10141 posts

re: High level finance class is a new level of intense
quote:

Bankruptcy process and strategies



For some really weird reason, I would like to learn this.


AmeriKop45
LSU Fan
Coach, Wing Tip Seat
Member since Jan 2016
2079 posts

re: High level finance class is a new level of intense
quote:

For some really weird reason, I would like to learn this.


Not so weird! The greatest minds out of top 5 B-schools are recruited by your GS/BCG/McKinsey to work in Bankruptcy Consulting/Structuring/TDRs. You work in this field and you are starting at $300K and up

It is a very interesting field indeed.
This post was edited on 11/15 at 9:03 am


barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
45468 posts

re: High level finance class is a new level of intense
quote:

All aspects of fixed income including duration and convexity
Immunization
Rebalancing
Horizon analysis
Spot, short, and forward rate calculations
APV, FTE, Capital Cash Flow, and WACC Valuation methods
Stockholder-Bondholder conflicts
Options and option strategies
Calculating Black Scholes using the cumulative normal density tables
Binomial Risk Neutral Valuation using Martingale probabilities
Hedging risk using derivatives
Put-Call Parity
Real Options
Bankruptcy process and strategies
Degree of operating, financial leverage


I loved that class. I'm getting excited just thinking about put-call parities and black-scholes.


GenesChin
Army Fan
The Promise Land
Member since Feb 2012
29637 posts

re: High level finance class is a new level of intense
quote:



I loved that class. I'm getting excited just thinking about put-call parities and black-scholes.



I love the idea, but we need to get a replacement for B-S option pricing. Long duration option pricing problems are


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10
Golfer
LSU Fan
Member since Nov 2005
67918 posts
 Online 

re: High level finance class is a new level of intense
I’m in stats right now and feel like a moron
This post was edited on 11/15 at 10:23 am


lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

re: High level finance class is a new level of intense
We had guest speakers from distressed / turnaround consulting firms. It was a pretty fascinating discussion and I could see that being an interesting career path.

FWIW, MBB rates are ~$150K base and a ~$45K signing bonus post-MBA now at the Consultant level. You don’t hit the ~300 range until you get closer to Principal or at least later stage Project Leader / Engagement Manager.


lynxcat
Rutgers Fan
Member since Jan 2008
18712 posts

re: High level finance class is a new level of intense
I’m almost done with my program and there are three areas where my knowledge base has really grown:
1) Valuation techniques and building DCF models
2) Econometrics, especially as it relates to marketing mix modeling (namely using and interpreting multiple regression)
3) Leadership philosophies and frameworks

Everything else has basically been a wash for me that I studied in undergrad. The people with non-business backgrounds get more out of the classroom.

Statistics used to really be a weak point for me and now I would argue it is becoming a strength. It was the single biggest transformation for me academically.


barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
45468 posts

re: High level finance class is a new level of intense
quote:

We had guest speakers from distressed / turnaround consulting firms. It was a pretty fascinating discussion and I could see that being an interesting career path.


If your program is worth a shit, my firm was probably there.


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