It's been 2 years since my last post, and now I'm writing for the purpose of documenting my recent discovery in work. So, I have recently learned how to compute a BPV of an interest rate swap financial instrument. Usually, we would just take the DV01 value from any of the database (e.g. Bloomberg), but the technical side is quite simple I've decided to share it with everybody. So, the computation looks like this:-



The interest is computed by = (Notional amount x interest rate x tenure/360)
The discount factor is computed by = (1/((1+interest rate)^NPER))
Float (+1bps) = (Interest rate + 1/100x1%)
The PV is computed by = (Interest x discount factor)
NPV is computed by = (TOTAL PV (Fixed) - TOTAL PV (Float))

NPV of an IRS facility is computed by finding the difference between the PV of the total fixed interest paid, and PV of the total floating interest paid. So, a basis point value (BPV) is computed by increasing the NPV of an instrument by 1 bps and comparing it to normal arrangement. For those who don't understand, 1 basis point (bps) equals to 1/100 of 1% (i.e. .01%).

This is helpful in assessing the sensitivity of the instrument to changes in interest rate. I hope my explanation is sufficient for those who are just starting the accounting profession. I'm sure there are more accurate and complicated ways of doing this, but for me this is enough.

goodbye.

goodbye. thanks for everyone who's been reading this. won't have anymore posts for another month. won't make any differences really. tq & see you

A social experiment of my own

For previous International women’s day on March 8, I’ve done an experiment of my own. I put a board for the women to let their counterparts know whatever that is important to them. This is good for our personal advancements, mainly me. Although it was met with lukewarm responses, a thousand thanks to those who took part. These are the responses, (I’ve condensed some of them, and the board is not in best form to display.)
1. Polygamy should be abolished. Men, you will never be capable of being fair.
2. Although women fell for sweet talker, we need practical men.
3. Actions speak louder than words.
4. Be practical. -0727-
5. Don’t say that we are a burden to you.
6. You get a second chance, but that’s all you’re getting. So, behave!
7. Be more observant.
8. Kepada kaum Adam, belajarlah untuk menghargai kaum Hawa selagi dia setia disamping mu. Buang ego tu, dan jangan terlalu pentingkan diri. Be more sensitive.
9. Be matured; lead us, not the other way round. Be hygienic too. Speak out and share. Don’t ever keep your mouth shut, okay? Xoxo
10. Cukuplah satu oi. Gatal!
11. Kenape ekk?
12. Watch your language. Grow up, boys!
13. Perempuan tidak menjadi diri mereka sendiri.
14. Sekarang perempuan kan ramai, kesian kat yang lain.
Thanks yet again to those who had contributed their thoughts and honest comments. Let us absorb the lesson, and not be too critical about our counterparts as nobody is perfect. But, by realizing that allows us to strive to be a better person. Now, we all know…

A Strategist Mind

On previous March 9, or 12 Rabiulawal was the birthday of our prophet Muhammad s.a.w. or Maulidur Rasul. There were many articles and discussions about the life of our prophet, but in this article, let us see and learn the strategic mind of our leader.
The acceptance of Islam in Madinah provoked Makkans to take military action against our prophet. The first big armed confrontation is known as the Battle of Badr. The battle was won by Muslims, but later Makkans were able to avenge their defeat at Uhud.
The prophet felt that war was not the solution. He announced in 6 A.H that he would perform Umra with 1,400 companies in a peaceful march. Makkans were against it and at Hudaybiya the prophet was halted. Negotiating peace, an agreement was reached which was the Treaty of Hudaybiya. By accepting all conditions of Makkan leaders, the prophet managed to suggest that there would be no war for the next 10 years.
The Hudaybiya treaty was a proof of prophet’s strategic mind, as it proved to be of tremendous benefits to Islam. The pact created an atmosphere of peace that allowed makkans and other Arabian tribes to visit Madinah and vice versa. There was no stopping Islam from becoming a subject of general discussion, which lead to it spread rapidly everywhere.
Maybe this information is not new to some of us, but the act of sharing it with everyone is more important. So, now that all of us know about this, let’s share this with others, won’t we?

IWC, anybody?

In March 8, it is International Women’s Day. This day is to commemorate or remember or even celebrating for women’s achievement in social, political and economic outstanding. The first observation that had been made and could be assumed as a kick start to this celebration is, on the 28 February 1909 in the United States following a declaration by the Socialist Party of America. The main idea of having an international women's day was first put forward because of protests over poor working conditions. It is hugely believed that women from clothing and textile factories staged one such protest on 8 March 1857 in New York City protesting against very poor working conditions and low wages. They then even formed their very first labour union.
This was then religiously followed by other protesters on every respective March 8, most notably in 1908 where they strictly demanded for their right to fair working condition, even wages and voting right. Then, in 1910 the German Socialist, Clara Zetkin submitted an ‘International Women’s Day’ suggestion in Copenhagen and fall to public approvals. The rest of the world soon took up from the example, but only on 8 March 1913, women across Europe held out rallies in protest against lack of safety measures in textile factory sparked from the fire of Triangle Shirtwaist factory in New York City that killed over 140 garment workers.
However, women this day still celebrate IWD for different reasons. For this recent IWD the International Committee of the Red Cross has warned that the specific health care needs of women are often ignored in war situations. It is quoted that in less developed countries; women are three hundred (300) times more likely to die in childbirth or after birth complications compared to developed countries. In armed conflicts, women are particularly at risk of rape and sexual violence.
So, now that you know, isn’t it time that you follow the example of these brave ladies instead of the spoiled heiress or over the top celebrities in tackling your daily life. Well, whatever…

Dia del Amor y la Amistad?!

Valentine’s Day just passed and how do you show your appreciation to your loved ones? Maybe some of us do not agree that celebrating this day is not suitable for our culture but nevertheless, showing your love and appreciation to your family, friends and loved ones is never too much. Yet, this should not be limited to only one day, for love is eternal that flows from days before to the days yet to come. However for this edition, we would not get mushy all over. But we will view in retrospective how other cultures celebrate this day.
In Norfolk, a character called 'Jack' Valentine knocks on the rear door of houses leaving sweets and presents for children. Although he was leaving treats, many children were scared of this mystical person. In Wales, many people celebrate Dydd Santes Dwynwen (St Dwynwen's Day) on January 25 instead of or as well as St Valentine's Day.
The most interesting ways to celebrate Valentine’s Day could be found in Asian culture. In Japan for example, women are expected to give chocolates to counterpart colleague. This is called ‘giri choko’, as in giri (‘obligation’) and choko (‘chocolate’). ‘Honmei choko’ is the chocolate given to loved ones. ‘Tomo choko’ is chocolate given from a friend to another, usually girls. The men is not spared from this tradition, when they are expected to return the favour of whom had given them chocolate on March 14, which is called White Day one full month later.
South Korea seems to have a darker sense of humour than its neighbouring country. While they do celebrate Valentine and White Day in similar fashion, they have another tradition for the singles. On April 14, those who did not receive anything on Valentine or White Day will go to any Chinese restaurant to eat black noodles and mourn their single life. I’d say, black noodles sound like a pretty good meal!

Thaipusam!

That Thaipusam is a Hindu festival celebrated mostly by the Tamil community on the full moon in the Tamil month of Thai (Jan/Feb). It is also referred to as Thaipooyam in the Malayalam language.
Pusam refers to a star that is at its highest point during the festival. The festival commemorates both the birthday of Lord Murugan (also Subramaniam), the youngest son of Shiva and Parvati, and the occasion when Parvati gave Murugan a vel (lance) so he could vanquish the evil demon Soorapadman.
Kavadi Attam is a dance performed by the devotees during the ceremonial worship of Murugan, the Tamil God of War.[1] It is often performed during the festival of Thaipusam and emphasizes debt bondage. The Kavadi itself is a physical burden through which the devotees implore for help from the God Murugan.[2] Devotees prepare for the celebration by cleansing themselves through prayer and fasting. Kavadi-bearers have to perform elaborate ceremonies at the time of assuming the kavadi and at the time of offering it to Lord Murugan. The kavadi-bearer observes celibacy and take only pure, Satvik (uncontaminated and should not spread evil or disease in the world) food, once a day, while continuously thinking of God.
On the day of the festival, devotees will shave their heads undertake a pilgrimage along a set route while engaging in various acts of devotion, notably carrying various types of kavadi (burdens). At its simplest this may entail carrying a pot of milk, but mortification of the flesh by piercing the skin, tongue or cheeks with vel skewers is also common.