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!

4 Comments
 

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.

 

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