|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. The author and Alexander orchestrate the a second security after "the opportunist" steals credit for the first involving the interest rate of which country?
2. Tokyo is seemingly the obvious site for Salomon Brothers' global expansion because of Japan's _____.
3. What are the European genus, English species, of slick financial people called?
4. What is it called when a trader offloads bonds down a customer's throat for the company's benefit?
5. What is the name of the Federal Housing Administration's approval to trade in whole loans?
Short Essay Questions
1. Who took the hit for the AT&T bond loss that the author advised Herman on?
2. What is selling short?
3. Do bosses at Salomon Brothers think badly of employees who are not at their telephones all the time? Why or why not?
4. What characterizes Stu Willicker's leadership style?
5. What is the particular need of thrifts in terms of investing in the mortgage bond market?
6. Does Michael Milken consider himself a part of Drexel Burnham?
7. What is the relationship of IOs and POs to the market?
8. What happens to the average age and the average age at Salomon Brothers in London in 1987?
9. When is the best time to sell short?
10. What are the two kinds of friction at Salomon Brothers?
Write an essay for ONE of the following topics:
Essay Topic 1
Compare the personality traits of Lewie Ranieri and Michael Milken. What is the difference between their careers in regards to their respective companies? Compare the amount of money each person made. Why did one make more money than the other?
Essay Topic 2
Describe the evolution of the mortgage trading department at Salomon Brothers. Who came up with the idea to develop that department? Who saw it through the hard times? What were some of the stumbling blocks that had to be overcome to make mortgages viable for trading? How does it finally become successful?
Essay Topic 3
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.
This section contains 839 words
(approx. 3 pages at 300 words per page)