View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What are the bonds of one-time blue-chip companies called?
(a) Loss leaders.
(b) Convertible bonds.
(c) Fallen angels.
(d) Second-string bonds.

2. What are the European genus, English species, of slick financial people called?
(a) Snakes.
(b) Rakes.
(c) Spivs.
(d) Donkeys.

3. According to the author, even knowledgeable thrift presidents feel they face a choice between rape and _____ when dealing with mortgage traders.
(a) Prison.
(b) Slow suicide.
(c) Long-term gains.
(d) Battery.

4. Ranieri says Bill Voute always has a _____.
(a) Need to pick at people.
(b) Political agenda.
(c) Biting wit.
(d) Sportscar image.

5. A guiding principle of Salomon Brothers that Tom Strauss iterates to the author is that customers have _____.
(a) Short memories.
(b) Big wallets.
(c) Long options.
(d) Small brains.

Short Answer Questions

1. What is Latin for "buyer beware"?

2. Which country's interest rate is part of the deal for which "the opportunist" steals credit?

3. A carnival performer who bites the heads off live chickens and snakes is definition of a _____.

4. Michael Milken works for which company?

5. What type of ideas does Herman want for his investment?

Short Essay Questions

1. Despite the upheaval in the mortgage market, what is the initial objection that remains valid as the mortgage market evolves?

2. What happens to the average age and the average age at Salomon Brothers in London in 1987?

3. When is the best time to sell short?

4. From the moment the Federal Reserve lifted interest rates in October 1979, what happens to the thrifts?

5. As the author gains more experience working in London, what does he think interests European traders that differs from American traders?

6. How is Howie Rubin thought of at Salomon Brothers? Why?

7. What is the relationship of IOs and POs to the market?

8. What is a tombstone and how does it apply to the German interest warrant created by the author and Alexander?

9. Why does one trader think that Mark Smith is not a Trojan Horse like some of the other traders believe?

10. How does the role of researcher change at Salomon Brothers during the mortgage bond explosion?

(see the answer keys)

This section contains 768 words (approx. 3 pages at 300 words per page) View a FREE sample