TOPIC 1:
1. Executive Summary:
Provide an overview of the report’s purpose and main findings.
2. Bank Overview:
Include key details about the bank, such as its establishment date, primary services,
national or regional focus, markets and regions, customer base, recent performance
(including profitability and asset quality ratios, like non-performing loans ratio and
provision coverage ratio). This section should help assess any potential weaknesses,
issues, or strategies that may lead to risks under adverse market conditions.
3. Introduction to Basel III:
Summarize Basel III’s purpose and key ratios (Capital Adequacy, Liquidity Coverage,
Leverage, and Net Stable Funding), including their formulas, objectives, and
requirements in Australia. Keep it brief, as the focus is the bank’s compliance and
whether meeting these requirements is sufficient.
4. Bank’s Compliance Analysis:
• Collect data from the past 3 years (by quarter) to create charts/graphs that
show trends in the Basel III ratios (no need to calculate the ratios; they are
available in the bank's annual report or quarterly disclosures).
• Go beyond describing the trends: explore underlying factors (e.g., e.g: an
increase in CET1 ratio might be due to a strategic response from the bank
anticipating worsening market conditions).
• Consider the bank’s unique characteristics, current strategies, any issue in their
recent performance, and market conditions. Identify potential risks and
evaluate if the current ratios are sufficient or need improvement (e.g., for
example, if we observe a rising trend in non-performing loan and predict
worsening market conditions, then the current level of CET1 might not be
sufficient).
5. Recommendations:
Based on your analysis, suggest actions the bank should take to address potential risks
and improve resilience against adverse events or market shifts.
TOPIC 2:
1. Executive Summary:
Provide an overview of the report’s purpose and main findings.
2. Background of the selected ASX listed company:
Introduction of the company, history, business model, etc.
Discuss the company’s equity capital market relevant information, such as market
capitalisation, market liquidity, PE, Dividend yield, etc
Discuss various significant indicators of financial performance (past to present)
Use factset to download all pertinent financial indicators and discuss the information
collected. Go beyond just describing trending up or down, but to synthesize for
insights.
3. Fundamental or Technical analysis (This is the major section of your paper):
a. Select one of the two analytical approach;
b. Provide your analysis based on the approach. Factset can assist to produce
summary of all the data required for both approach. If unsure, you can contact
factset helpdesk directly.
c. Synthesize and provide insights
4. Recommendations:
Based on your analysis, provide recommendation on the share, including suitability to
the type of investors with justification.
TOPIC 3:
1. Executive Summary:
Provide an overview of the report’s purpose and main findings.
2. Overview of the 3 bonds selected: briefly describe their main features (coupon rate,
coupon payment frequency, callability, sinking fund, convertibility, maturity, credit
rating (issuer rating and bond rating), where they were issued and traded.
3. Bond Features and Their Impact on Yield:
• You may begin with a general discussion on how various bond features affect
bond yield, then apply this to the bonds in your report.
• Alternatively, you can directly analyze how differences in bond features
explain the yield variations between bonds, supporting your analysis with
concepts and previous findings from literature.
4. Macroeconomic Outlook and Potential Impact on Bond Prices and Yields:
• Develop an outlook on current and expected market conditions, including any
anticipated changes in central bank monetary policies. If you selected bonds
from multiple markets, provide this analysis for each market.
• Discuss how these factors might influence bond prices and yields (e.g., an
anticipated rate cut by the RBA may raise bond demand, or economic
challenges in China may drive investors to safer assets like bonds, affecting
yield and prices).
5. Conclusion: summarise your main findings but in greater detail than in the executive
summary.
TOPIC 4:
1. Executive Summary:
Provide an overview of the report’s purpose and main findings.
2. Overview of the company:
Introduce the company and its business model (what does it do to make money). If a
company is an exporter: what are the main markets? Do some breakdown of revenues
by markets/countries/regions. If a firm imports, then where it imports from, break cost
of goods sold by market/country/region.
This will allow us in the next section to
evaluate the company’s FX risk exposure: where the foreign exchange risk is most
concentrated, what factors/events have significant impact on the firm’s FX risk.
3. Evaluation of the Firm’s FX Risk Exposure and Hedging Strategy Effectiveness:
• FX Risk Exposure:
Identify key areas of vulnerability, concentration, and the extent of FX risk.
• Current Hedging Strategies:
Outline the company’s existing hedging strategies and assess their
effectiveness, including any gains or losses due to FX fluctuations.
• Future Effectiveness of Hedging:
Evaluate if these strategies will remain effective by analyzing macroeconomic
factors affecting FX rates between the AUD and other currencies.
For instance, USD has been deprecated against AUD since the FED cut rates,
will the trend continue or will it reverse? What might happen when RBA cut
rates in the coming quarter? Determine whether these FX trends benefit or
pose risks for the company and assess if the current hedging strategy is still
necessary. In cases where FX moves favorably and is expected to stay stable
long-term, it may be advantageous for the firm to reduce or eliminate FX
hedging to capitalize on these favorable conditions.
4. Recommendation:
Based on your analysis, make recommendations on how the firm can improve their
FX risk hedging strategies.
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