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...
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