Transcription of Chapter 12 Investment Analysis
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Chapter 12 Investment Analysis TABLE OF CONTENTS Investment Analysis ..12-3 Examination Objectives ..12-3 Associated Risks ..12-3 Overview ..12-3 Examiner Resources ..12-4 Policies ..12-4 Examination Guidance ..12-10 Classification of Securities SFAS 115 ..12-10 Broker-Dealer Analysis ..12-11 Audit ..12-14 Safekeeping ..12-14 Records ..12-17 Investment Valuation ..12-18 Bond Basics ..12-18 Principal ..12-19 Coupon Day Count Basis ..12-20 Accrued Interest ..12-20 Price Quotations ..12-20 Yield Quotations ..12-21 Investment Products ..12-22 US Treasury Securities ..12-22 Treasury Bills ..12-22 Treasury Notes and Bonds ..12-23 Treasury Zeros or STRIPS ..12-23 Other US Guaranteed Securities.
INVESTMENT ANALYSIS ... of an investment communicates to management the board’s tolerance for risk at the instrument level. The policy should ensure management considers the effect of ... monitoring the price sensitivity of the investment portfolio and long-term loans, is a
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