|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. Drexel Burnham runs an ad in the Wall Street journal showing two men _____.
2. What type of nightmares is the author having at the beginning of "The Art of War"?
3. CMO's are divided into slices, or _____.
4. Mike Milkin of Drexel Burnham is the guru of _____.
5. What is the name given to the junk bond seminar that Michael Milken speaks at every year in Beverly Hills?
Short Essay Questions
1. What is the particular need of thrifts in terms of investing in the mortgage bond market?
2. When is the best time to sell short?
3. How does Lewie Ranieri feel about Michael Milken? How does this differ from John Gutfreund's opinion of him?
4. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?
5. What happens to the average age and the average age at Salomon Brothers in London in 1987?
6. What is the relationship of IOs and POs to the market?
7. Does Michael Milken consider himself a part of Drexel Burnham?
8. From the moment the Federal Reserve lifted interest rates in October 1979, what happens to the thrifts?
9. What is drifting away from Salomon Brothers and toward Drexel Burnham in 1987? Why?
10. What is happening in colleges in Britain by the end of 1986?
Write an essay for ONE of the following topics:
Essay Topic 1
How does the game of Liar's Poker have the feel of trading? Describe how Liar's Poker works, the list of questions a bond trader asks himself, and list some of the other firms besides Salomon Brothers which have similar games.
Essay Topic 2
How is Lewie Ranieri fired? Why is he fired? Who does he blame for his being fired? Why? What reasons are given by Gutfreund for his dismissal? Why is he not let into the building after he is fired?
Essay Topic 3
What is the quickest way to be fired from Salomon Brothers? Why? How does Gutfreund act contrary to this unwritten rule? How does he get away with it?
This section contains 791 words
(approx. 3 pages at 300 words per page)