Posts Tagged ‘ Schweser 2009 Books ’

Change in Study Approach

I wanted to take a sec to recap a sudden change I have had in my study approach.  When I drew up my original study plan I was well aware I would constantly be making adjustments, and that has rang true thus far.  Because I had to start so late in the game (3 months) I am now at a point where I am counting days before the exam, not months.  With that being said, I am trying to get through the curriculum in the best possible, with the least time possible.  This has unfortunately led to a lot of exclusion of original study plans.

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Change: No more formula notebook

Solution: Schweser summarize the formulas in the back of each note section.  During my review process I will rip out those pages and practice all the formulas.  So my formula notebook will be a collection of ripped out pages, but still have the same information.  Net result is less time, same outcome.

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Change: Not reading secret sauce as I progress through the material

Solution: Secret sauce is meant for a final review process, so trying to complete a secondary review immediately after a study session was overkill for my particular situation.  Instead I will read secret sauce during my first review week, and make notes in it throughout my review.  Also I will review the entire secret sauce with the SPH days before the exam.

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Change: No sequential cross referencing at every reading.  I noticed one day that if I cut out the cross referencing I could do an additional reading per day, which is a big plus for me.  The cross referencing was to ensure I didn’t miss anything pivotal, but schweser does put the information under each LOS so the likely hood of this happening is reduced.

Solution: If time allows at the end of each topic I will cross reference the entire topic at one time.  I’d like to think of this as my secondary review of the material, but it really just a skim through the sections.

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Change: No questions immediately after the review. Some may argue with this point as questions really do help to drive home the material.  I am pro questions 100%, but I also want to get through the curriculum so I can have as much dedicated question and review time as possible.  When I cut out question as well as cross referencing I was able to do a lot more in a day, moving through 3 topics in under a week.

Solution: Not to miss a single question in qbank, schweser, cfai, or any addition mock/sample exams I am able to get ahold of.  By completing the curriculum in a shorter timeframe I will be less stressed about finishing the curriculum.  With that said, I will focus on completing all the questions I have before the end of the exam.  This is non-negotiable, questions are essential to success.

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What I haven’t changed is the review of stalla cue cards after the entire topic as well as a review of the quick-sheet.  This just gives me a general exposure to the entire material before I move on.  I have been able to squeeze these at the end of review quite painlessly.  I will also be reviewing the cue cards and quick sheet again during my review process.

Reading 64: Introduction to the Valuation of Debt Securities

SCW: 8 pages

Lessons Learned:

  • Using quant/TVM here to value bonds
  • Price yield profile is perplexing
  • I still don’t understand why we multiply N in zero coupon bonds and why YTM/2 for I/Y!!!???
  • The arbitrage-free valuation approach is pretty basic, applying it shouldn’t be to difficult….try out the example

Reading 63: Understanding Yield Spreads

SCW: 9 pages

Lessons Learned:

  • For once, graphs actually helped clarify something
  • The yield ratio is simply one plus the relative yield spread
  • I need to revisit LIBOR as it isn’t really clarified in my mind enough yet, even though it seems fairly simplistic
  • Preferred habitat theory and the market segmentation theory
  • Importance of spot rates!!!

Reading 62: Overview of Bond Sectors & Instruments

SCW: 16 pages

Lessons Learned:

  • Terminology is still fairly introductory, but interesting
  • Learning how to read t-bond quotes was very interesting
  • Page 55: be careful here, medium-term notes are not necessarily medium-term or notes……ok what……
  • Another chapter packed with definitions
  • I would like to know more about special purpose vehicles in regards to bankruptcy
  • Stripped securities introduced, play a large role later on
  • The combination of the derivative and the note is called a structured security