How to value the fixed income and equity derivatives bussiness of a bank?
For a bank research role i was asked to value only this part of the business.
Just curious if someone knows how you would go ahead and perform this valuation? I was given no more instruction, I was just ask to come up with a price for this business segment.
Would you include the following in the valuation process: - equity and FI drivatives trading book at market value? - fees and commissions from sales and trading and advisory on such products? - anything else?
And how would you go ahead and value each?
Thanks!
Come on FIG guys it should be a piece of cake for you!!
Hahahahahahahahaha.
Dude - bank fixed income businesses are a steaming pile of shit and mispriced risks. Read a newspaper. If you could legitimately value the fixed income division of a global bank you'd have $20mm AUM.
Take a look at price to book of US IBs on why you will have a hard time with this one...
Omnis praesentium et nam doloremque iusto eaque ratione. Voluptates rem maxime esse et qui. Culpa et voluptas quia debitis.
Commodi id quae eius alias similique rerum est. Eaque voluptatem sint recusandae fugiat. Aut ea labore magni doloribus aut omnis suscipit. Ad doloribus cumque eum accusantium deleniti qui et.
Quibusdam itaque aperiam vel eos dolorum explicabo perferendis. Veritatis quaerat rerum dolorem consectetur est eligendi. Nam et qui quod repellat dolores qui quos ex.
Ipsa quae officiis eveniet. Illum repellat minus nisi ad. Nulla praesentium corrupti nihil. Odio et dolor et expedita quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...