Vigneshwaran Rajendran’s Post

𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗜𝗻𝘁𝗲𝗿𝘃𝗶𝗲𝘄 𝗣𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻 - 𝗗𝗮𝘆 𝟳𝟵 𝟭)𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗮 𝗰𝗼𝘂𝗽𝗼𝗻 𝗿𝗮𝘁𝗲 𝗮𝗻𝗱 𝗮 𝘆𝗶𝗲𝗹𝗱 𝘁𝗼 𝗺𝗮𝘁𝘂𝗿𝗶𝘁𝘆 𝗼𝗻 𝗮 𝗯𝗼𝗻𝗱? The coupon rate is the fixed interest rate paid on a bond's face value, while the yield to maturity reflects the total return an investor can expect if the bond is held until maturity, considering its current market price. 𝟮)𝗛𝗼𝘄 𝗱𝗼𝗲𝘀 𝗰𝗼𝗻𝘃𝗲𝘅𝗶𝘁𝘆 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲 𝘀𝗲𝗻𝘀𝗶𝘁𝗶𝘃𝗶𝘁𝘆 𝗼𝗳 𝗮 𝗯𝗼𝗻𝗱 𝘁𝗼 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀? Convexity measures the curvature of the bond's price-yield curve. It influences the bond's price sensitivity to interest rate changes. Higher convexity reduces price volatility when interest rates fluctuate. 𝟯) 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗺𝗮𝗶𝗻 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻-𝗣𝗿𝗼𝘁𝗲𝗰𝘁𝗲𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 (𝗧𝗜𝗣𝗦) 𝗮𝗻𝗱 𝗰𝗼𝗻𝘃𝗲𝗻𝘁𝗶𝗼𝗻𝗮𝗹 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗯𝗼𝗻𝗱𝘀? TIPS provide protection against inflation by adjusting their principal value, while conventional Treasury bonds have a fixed principal. TIPS offer a real yield, reflecting both an inflation expectation and a fixed spread. 𝟰)𝗘𝘅𝗽𝗹𝗮𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗻𝗰𝗲𝗽𝘁 𝗼𝗳 𝗰𝗿𝗲𝗱𝗶𝘁 𝘀𝗽𝗿𝗲𝗮𝗱𝘀 𝗮𝗻𝗱 𝗵𝗼𝘄 𝘁𝗵𝗲𝘆 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗼𝗳 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗯𝗼𝗻𝗱𝘀? Credit spreads represent the additional yield over the risk-free rate that investors demand for holding a riskier asset. In the context of corporate bonds, wider credit spreads indicate higher perceived credit risk and can result in lower bond prices. 𝟱) 𝗛𝗼𝘄 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝘀𝗵𝗮𝗽𝗲 𝗼𝗳 𝘁𝗵𝗲 𝘆𝗶𝗲𝗹𝗱 𝗰𝘂𝗿𝘃𝗲 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲 𝘁𝗵𝗲 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀 𝗼𝗳 𝗳𝗶𝘅𝗲𝗱-𝗶𝗻𝗰𝗼𝗺𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀? The shape of the yield curve influences investor expectations about future interest rates and economic conditions. 𝗙𝗼𝗿 𝗶𝗻𝘀𝘁𝗮𝗻𝗰𝗲, a flat or inverted yield curve may prompt defensive positioning, while a steep curve may encourage risk-taking. 📌Follow Vigneshwaran Rajendran For More Interesting Content Like This #day79 #bnymellon #jpmorganchase #morganstanley #goldmansach #blackrock #blackstone #investmentbanking #interviewpreparation #opentowork #linkedinforcreators #statestreet

This article delves into the contrasting career paths of David Solomon, CEO of Goldman Sachs, and Alan Waxman, co-founder and CEO of Sixth Street Partners, highlighting the broader industry trends and challenges faced by big #banks today. This article serves as a rich case study and offers valuable insights for other banks aiming to navigate the complexities of talent retention, regulatory compliance, leadership development, and strategic decision-making in today’s rapidly evolving financial landscape. In addition, the contrasting careers of Solomon and Waxman raise questions about talent retention and the attractiveness of long-term careers within big banks. Banks should reconsider how they nurture and retain their top talents, ensuring they provide competitive and fulfilling career trajectories. What strategies do you think big banks should adopt to retain top #talent , stay competitive, and ensure sustainable growth in this evolving landscape?" #GoldmanSachs, #TalentRetention, #ABSL, #CareerDevelopment, #polandjobs

How Citi’s exit is reshaping the muni landscape The Bond Buyer | Jessica Lerner Citi's exit from the municipal business late last year, on the heels of UBS' closure of its negotiated underwriting business in October, has brought about a redistribution of high-level bankers, traders and other market players to a broad range of municipal firms that is leading to an evolved muni market landscape in 2024.  …. The spree of recent hires is part of what JAMES PRUSKOWSKI, chief investment officer at 16Rock Asset Management, calls the “Great Reset” in the muni market, rolling over from 2023, which saw a “war on junior talent and fee compression and regulation” that led to layoffs, compensation resets and consolidation of teams and business. “The market naturally in this scenario created huge opportunities,” JAMES PRUSKOWSKI said. “There is no shortage of skilled labor; it’s that they’re being redistributed to other shops.” https://lnkd.in/gYCCi-yY #municipalbonds #muniland #jobs #opportunity #thegreatreset #notthegreatdepression #roaring20s #talentwar #budgets #fees #compression #regulation #technology #skilledlabor #layoffs #consolidation

𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗜𝗻𝘁𝗲𝗿𝘃𝗶𝗲𝘄 𝗣𝗿𝗲𝗽𝗮𝗿𝗮𝘁𝗶𝗼𝗻 - 𝗗𝗮𝘆 𝟱𝟭 𝟭) 𝗪𝗵𝗮𝘁 𝗿𝗼𝗹𝗲 𝗱𝗼 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝗿𝘀 𝗽𝗹𝗮𝘆 𝗶𝗻 𝘁𝗵𝗲 𝗔𝘀𝘀𝗲𝘁-𝗕𝗮𝗰𝗸𝗲𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀 (𝗔𝗕𝗦) 𝗺𝗮𝗿𝗸𝗲𝘁, 𝗮𝗻𝗱 𝘄𝗵𝘆 𝗮𝗿𝗲 𝘁𝗵𝗲𝘆 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗳𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀? Servicers are responsible for collecting payments from the underlying assets, managing delinquencies, and distributing cash flows to ABS investors. They play a crucial role in ensuring the performance and stability of ABS. 𝟮) 𝗘𝘅𝗽𝗹𝗮𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗻𝗰𝗲𝗽𝘁 𝗼𝗳 𝗰𝗿𝗲𝗱𝗶𝘁 𝗲𝗻𝗵𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 𝗼𝗳 𝗔𝗕𝗦? Credit enhancement is a mechanism used to improve the credit quality of ABS. It can involve overcollateralization, subordination of tranches, or third-party guarantees. Credit enhancement helps absorb potential losses, making ABS more attractive to investors. 𝟯)𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝗯𝗲𝘁𝘄𝗲𝗲𝗻 𝗮 𝗽𝗮𝘀𝘀-𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗮𝗻𝗱 𝗮 𝗽𝗮𝘆-𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗶𝗻 𝗔𝘀𝘀𝗲𝘁-𝗕𝗮𝗰𝗸𝗲𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀? In a pass-through structure, investors receive a share of the cash flows directly from the underlying assets. In a pay-through structure, cash flows pass through various tranches before reaching investors, allowing for risk allocation. 𝟰) 𝗛𝗼𝘄 𝗱𝗼 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗿𝗮𝘁𝗲𝘀 𝗮𝗳𝗳𝗲𝗰𝘁 𝘁𝗵𝗲 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗼𝗳 𝗔𝘀𝘀𝗲𝘁-𝗕𝗮𝗰𝗸𝗲𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀? Rising interest rates can lead to increased prepayments on certain ABS, while falling rates may extend the life of investments. To manage interest rate risk, investors can choose tranches with suitable characteristics, use derivatives, or employ hedging strategies. 𝟱) 𝗪𝗵𝗮𝘁 𝗿𝗼𝗹𝗲 𝗱𝗼𝗲𝘀 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗽𝗹𝗮𝘆 𝗶𝗻 𝘁𝗵𝗲 𝘀𝗲𝗰𝗼𝗻𝗱𝗮𝗿𝘆 𝗺𝗮𝗿𝗸𝗲𝘁 𝗳𝗼𝗿 𝗔𝘀𝘀𝗲𝘁-𝗕𝗮𝗰𝗸𝗲𝗱 𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀, 𝗮𝗻𝗱 𝗵𝗼𝘄 𝗱𝗼𝗲𝘀 𝗶𝘁 𝗶𝗺𝗽𝗮𝗰𝘁 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗼𝗳 𝘁𝗵𝗲𝘀𝗲 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝗶𝗲𝘀? Liquidity is vital for the secondary market as it influences the ease of buying and selling ABS. Higher liquidity typically leads to tighter spreads and better pricing. Illiquid ABS may face challenges in finding buyers or sellers, affecting pricing dynamics. 📌𝗙𝗼𝗹𝗹𝗼𝘄 Vigneshwaran Rajendran 𝗙𝗼𝗿 𝗠𝗼𝗿𝗲 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗖𝗼𝗻𝘁𝗲𝗻𝘁 𝗟𝗶𝗸𝗲 𝗧𝗵𝗶𝘀 #day51 #bnymellon #jpmorganchase #morganstanley #goldmansach #blackrock #blackstone #interviewpreparation #opentowork #investmentbanking #statestreet

Private credit is dominating the financial landscape, with traditional banks retreating from risky loans. Private lenders are flourishing, driven by rising interest rates, and offering substantial returns that outperform traditional bonds. Even top executives like Blackstone recognize this as a "golden moment." It's no surprise that LinkedIn reflects the trend, with a 131% surge in users listing "private credit" as a skill. But, it's not all smooth sailing. https://lnkd.in/dTP6Uzvi

The new Kings of Wall Street aren't Banks, they're Funds ~ Wall Street Journal With headlines like this and just a mere scan the The Wall Street Journal, Secondaries Investor or Private Equity International, you'd be living under a rock not to see the uptick of headlines across the funds space. Whether it is strategy changes to build out credit or debt offerings, discussion of continuation fund offerings or changes to LP and GP appetite in the current climate -- there is a lot happening. This affects the appetite for hiring, too. In a good way. After a short lull, hiring across #privatefunds, #secondaries and #regulatoryfunds is coming back with a vengeance. Get ready.

🚀 Exciting developments in the world of high-frequency trading! 🚀 Ken Griffin’s Citadel Securities has made a significant move by appointing former Goldman Sachs executive Jim Esposito as president. Esposito, known for his expertise and leadership, will join the Miami-based market maker in September, reporting directly to CEO Peng Zhao. This strategic hire showcases Citadel Securities' bold ambitions to rival traditional Wall Street banks. As a dominant force in high-speed trading, Citadel Securities handles about a third of all US retail stock trades and is rapidly expanding into new asset classes and global markets. Esposito's addition to the team is set to drive the firm’s growth even further. “I am excited to join Citadel Securities, a next-generation capital markets firm with world-class talent and cutting-edge analytics and technology,” Esposito said. His primary focus will be on expanding the firm’s client base and forging new partnerships. With Citadel Securities on a path of significant expansion and innovation, this move signals a thrilling period of growth and opportunity. Stay tuned as Citadel Securities continues to disrupt and lead the trading world! 🌍📈 #Finance #HighFrequencyTrading #CitadelSecurities #GoldmanSachs #JimEsposito #MarketMakers #Trading #Investment #KenGriffin

Using the current market price of Goldman Sachs' stock, the EEA framework predicted investor outlook on its future performance. https://lnkd.in/g_zfQw8R #FinancialNews #EconomicTrends #InterestRates #StockMarket #Investing #Accounting #FinancialAnalysis

📊Even after the 2008 financial crisis and criticism of big banks mounted, a mystique remained about Goldman Sachs, writes Bethany McLean. It was cool and competent. Even when it lost hundreds of millions on a trading bet gone awry, or intentionally screwed its own clients, well, that had a certain swagger to it.💵 Being a partner at Goldman meant you were part of the greatest wealth-creation machine the world had ever known. You were one of Wall Street's kings. But that sentiment has shifted. For Business Insider, McLean reports: Has the age of America's last great investment bank finally come to an end? Is Goldman Sachs dead? https://lnkd.in/e9Cv7qHx #wallstreet #financialnews #goldmansachs #finance #markets #investing

Bye bye Goldman Sachs, hello Citadel Securities Citadel Securities has got some big aspirations. Bloomberg reported earlier this month that the electronic trading firm would like to offer a white labelled trading service to banks that presumably would no longer run trading operations of their own. In return for a fee, the vision seems to be that Citadel Securities would manage technology, order analytics and execution. Banks would just need to plug in the clients. Citadel Securities isn't commenting on whether this is the case, but if it is, the firm will have no problems understanding what banks need for their trading operations. - Many of its employees have banking backgrounds. Quite a few have previously worked for Goldman Sachs. Citadel Securities' biggest Goldman Sachs hire this year is Jim Esposito the former co-head of global banking and markets at Goldman Sachs. Esposito is joining Citadel Securities as president, to help expand into new markets with new clients in September. However, Citadel Securities is also stocking up on other more junior ex-Goldman Sachs staff in the meantime. In London, it has just hired Kristina Kravchenko a former executive director at Goldman who joins as a senior trader on the delta one team. Kravchenko had been at Goldman for nearly six years. In New York, Citadel Securities recently added Jeff Eason a former Goldman VP in investment research. Eason joined as head of investment grade research as the firm builds out its fixed income trading business. Citadel Securities itself isn't immune to losing staff, though. François JEULIN its Hong Kong-based head of index arbitrage left for Qube Research & Technologies in March. A former senior quant trader went to Jane Street in May - but only have a two year period of gardening leave. #jobs #capitalmarkets #investmentbanking #trading