Google Nexus One Phone: Does Google really need it?

There is a lot of Googling going on about the Google Nexus One Cell Phone. The net, storyboards, blogs, tweets and infact the entire web is full of news and pictures of the Google Nexus One Cell Phone.
However, as a Business Analyst, I am a bit skeptical about this venture that Google is getting into.

First, What is the intention of Google when it says that it wants to sell Google Nexus One Cell Phone directly to the consumers? I cant understand that when there are so many cell phones or better to say smart phones available in each part of the world, what is Google trying to do by coming up with its own brand of phones?
True that Google is a big name, but imagine the stiff competition it will face from the existing smart phones.

Second, Google is going solo. No strings attached, no carrier bounds like one must go with AT&T or Verizon. However, that might mean that Google will not be able to provide the required discount to the buyers, which is possible when the manufacturer and the cell phone connection carrier join hands.

Third, remember iPhone. It was an instant hit. However, after some months, many other smart phones were found to be better than the iPhone. The remade low cost Chinese models were the choice for their low costs, no strings attached about connections and easy availability. What if Google Nexus One Cell Phone also meets the same fate?

Fourth, is mobile phones the core of Google Business? I dont think so. Google is a search company. Although it has launched many new things - bloggger, picasa, chrome, etc., but it still remains a software company. What is forcing it to shift to hardware? As WSJ claims, Google did not build computers or the internet, but it dominates the computers as well as the internet. It would have made more sense for Google to build web applications for mobiles, rather than a mobile phone itself. The business deviation might look a good venture into a new hardware stream, but the risks of failure are no less.

Hope to see some concrete returns for the shareholders of Google after the launch of the much awaited Google Nexus One Cell Phone.

Corporate Actions Processing: Introduction, Example & Course Outline for CA Processing

What are Corporate Actions? How are they processed? In this article, we will give a brief introduction about the various sub topics involved in the Corporate Actions Processing.
Despite all kinds of computer automation and programs available, the Corporate Actions processing still is dependent upon the manual processing. Although many systems claim to have the Corporate Actions processing through automation or So called Straight through processing (STP), the truth is that it still requires a lot of manual intervention and pre-processing setup. Hence, it is very important for a financial professional to become familiar with the Corporate Actions Processing and the various concepts and steps involved.


-- What is a corporate action event and why is it important?:
The details and introduction to CA Processing and what is the financial importance of the Corporate Actions Processing.

-- Types of corporate action events in Corporate Actions Processing:

 Mandatory Corporate Actions

 Voluntary Corporate Actions

-- The role of market data in Corporate Actions Processing:

 Details of the Corporate Actions event

  -Types of Corporate Actions Processing

  -New values of Corporate Actions Processing

  -Ratio calculations in Corporate Actions Processing

  -Dates and their importance in Corporate Actions Processing

 Sources of market data for Corporate Actions Processing

  -Vendors - data required from vendors for Corporate Actions Processing

  -Specialties about Corporate Actions Processing

  -Scrubbing the data for Corporate Actions Processing

-- Industry Utilities for Corporate Actions Processing:

 Off-the-shelf applications - Intro to some ready available software applications for Corporate Actions Processing

 DTC RIPS

-- Processing Voluntary Events in Corporate Actions Processing:

 Types of Corporate Actions Processing

  -Conversions in Corporate Actions Processing

  -Exercises in Corporate Actions Processing

  -Investments factors in Corporate Actions Processing

  -Tenders in Corporate Actions Processing

 Typical work flow for Corporate Actions Processing

 Case Study about Corporate Actions Processing

-- Processing Mandatory Events in Corporate Actions Processing

  Types of Corporate Actions Processing

  -Bankruptcy case in Corporate Actions Processing

  -Call options in Corporate Actions Processing

  -Merger in Corporate Actions Processing

 Typical work flow of Corporate Actions Processing

 Case Study

-- Risks in Corporate Actions Processing:

 Types of Risks in Corporate Actions Processing

 Impact of failure or mismanagement or mishandling in Corporate Actions Processing

 Mitigation alternatives in Corporate Actions Processing Risks

-- Global Perspective in Corporate Actions Processing:

 Differences in data collection and processing

 Unique operations-related challenges

 Impact on the US operation

-- Evolving Trends in Corporate Actions Processing

 New events, new outcome comes with new challenges

 Event data warehouse

 Event data guarantee of accuracy

 Should an industry utility develop a partial or total solution?

Financial Mathematics: Introduction, Topics, Examples & Course Outline

Continuing further from our previous article Financial Accounting, In this article, we will cover another well known and most sought after topic of Financial Mathematics. Money requires understanding, and that understanding can come only when you know maths quite well. Now the maths required for Finance is not algebra or trigonometry, but there is a seperate section called Financial Mathematics.
Here we cover some basic details about the Financial Mathematics course outline, what all is covered in Financial Mathematics and how useful is Financial Mathematics for survival in Financial World. Making correct calculations for profit / loss is as important as making the right investment decision. Moreover, with the introduction of complex financial products like derivatives, options, swaps, etc. it has become a necessity for not just the financial professionals and investors but even for the individuals to know and understand Financial Mathematics.
Even if you are not an investor or trader, chances are that you might have taken a loan or might be manageing a savings account. You need to understand the effective interest rate payments you make for your loan repayment or credit card and the effective interest you receive from your savings account.

The course on Financial Mathematics teaches you all these things. The course on Financial Mathematics includes the following:

Fundamentals of Financial Mathematics:

 -- Time Value of Money o Cash Flows and Discount Rates o Present Values o Future Values

 -- Investment Measures

 -- Returns: Calculation and Conventions

 -- Interest Rates, Yields and Rates of Return Compared

Fixed Income Analytics of Financial Mathematics:

 -- Price and Yield Calculations

 -- Yield Curves, Spot Rate Curves and Fixed Income Valuation

 -- Quantifying Interest Rate Risk


Equity Securities Analytics of Financial Mathematics:

 -- Pricing Models: Discounted Cash Flows, Earnings or Dividends

 -- Pricing Models: Earnings, Cash Flow, Sales or Book Value Multiples

 -- Capital Asset Pricing Model (CAPM)

 -- Beta and Systematic (Market) Risk

 -- Index Model and Equity Investment Selection

ALong with these topics and their theoretical knowledge, you may also be required to get a lesson in fundamental tools and applications like MS Excel, E-views, Matlab etc

Financial Accounting: Introduction, Topics, Examples & Course Outline

In this article, we will cover another well known and most sought after topic of Financial Accounting.
As we have seen, many scams have unfolded in the world, primarily in the stock markets listed companies, just because of the accounting issues. The cases of Enron, Worldcom, Parmalat, AlbertHein of Netherlands, etc. are well known. They are typical examples of how financial accounts can be manipulated to gain/ show imaginary profits and bloated sales figures. Ultimately, it is blamed on the financial accounting. Hence it is very very important for a firm or even an individual investor to be extra vigilent and careful about creating, writing or even reading these financial accounting numbers.

In this article, we will see the various topics and sub topics which are covered for Financial Accounting. Although we aim to give all the required information, the fin details may still need a thorough analysis and study.

Financial Statements within Financial Accounting:

-- Types of Financial Statements

-- How the different Financial Statements Relate to One Another

General Accounting Issues of Financial Accounting:

-- GAAP (Generally Accepted Accounting Principles)

-- Accounting Concepts and Conventions

Structure and Interpretation of Financial Statements of Financial Accounting:

-- Balance Sheet: Assets, Liabilities and Equities

-- Income Statement: Revenues, Expenses, Gains and Losses

-- Cash Flow Statement: Cash Provided by/used for Operations, Investments and Financing activities

Tools and Techniques for Analyzing Financial Information of Financial Accounting:

-- Financial Ratios

-- Use and Misuse of Financial Ratios in Analyzing Financial Statements

Swaps Processing: As Introduction to Swaps Market & Swaptions Terminology

In this article, we will talk about a most common form of financial derivative which is traded heavy as an OTC product and is called SWAP.
We will cover a brief outline about the Swaps Introduction, What affects the Swap pricing, Risks in Swap transactions, the Swap Market, Swaptions and other related topics.

The typical topics covered when you undergo a swap lesson or course are as follows:

--Overview of the swap market :
This would include a brief overview and introduction about the swaps market, the swaptions market, how the market works and who all are the swap market participants.

--Factors affecting Swap market and pricing: Interest Rate, Currency, Credit Default and Equity Swaps :
Characteristics of all these factors and how they affect the swap market and pricing mechanism

--The roles of the sales and trading desks in swaps market:
This would primarily cover the details of how swap deals take place, originate and contract details and what roles do these teams have to play

--Counterparty risk :
Swaps market primarily is an OTC or Over the Counter Market. Hence, this Counterparty risk is a significant risk in the swaps market.

--Price dissemination in a swaps market :
How Prices are disseminated for swaps market

--Collateral management in a swaps market :
Various aspects of Collateral management in a swaps market

--How swap deals are confirmed :
The methodolgy for swaps and swaption deals and how the process takes place. This is important since swap market is an OTC market, so the entire process should be clear.

--ISDA agreements and documentation :
Required regulatory procedures.

--The evolving infrastructure of the industry :
Swaps are emerging as the hot products for banks and other organizations to hedge their risks and re-structure their loans. Hence they are becoming very common.

--Functions of Clearing House and alternatives for swaps market:

--Calculation, advice, and settlement of payments for swaps :

--Issues for operations for swaps

Mortgage-Backed Securities: Securitization and Processing Introduction

In this article, we will learn about the Mortgage-Backed Securities, the Securitization process and Introduction to Securitization process . Though this article may not be covering the full minute details about entire Securitization process, but it will give you a clear introduction about the process and steps involved in the Securitization Process for Mortgage-Backed Securities. It will also talk about the various market participants, the types of Mortgage-Backed Securities, the models to be followed and related topics.

-- Participants in the Securitization and Processing of Mortgage-Backed Securities: Who all participate in the Securitization and Processing of Mortgage-Backed Securities? Here is the list of market and process participants
  -- Investors of Securitization Processing
  -- Originators in Securitization Processing: These are typically Banks, institutional investors, funding partners or Lenders
  -- Issuers: Something similar to the BRLM or Book running lead managers of a fresh issue. They are typically Agencies, Banks, Lenders
  -- Guarantor of Securitization Processing
  -- Dealers of Securitization Processing
  -- Servicers Organizations in Securitization Processing

-- Basic Mortgagle Facts about the Securitization and Processing of Mortgage-Backed Securities:
  -- Lien
  -- Amortization schedule
  -- Residential
  -- Commercial
  -- Characteristics of mortgages
  -- Types of mortgages
  -- Mortgage cash flows

-- Guarantees provided by the Government Sponsored Enterprise (GSE) in the Securitization and Processing of Mortgage-Backed Securities:
  -- Government National Mortgage Association
  -- Federal Home Loan Mortgage Corporation
  -- Federal National Mortgage Association

-- Fundamental Types of Mortgage Backed Securities: Basics of Mortgage Backed Securities
  -- Conforming
  -- Non-Conforming

-- Securitization Process Model in the Securitization and Processing of Mortgage-Backed Securities:
  -- Origination
  -- Securitization
  -- Secondary Market
  -- Investors
  -- Servicers
  -- Mortgage Rates versus MBS Coupon
  -- Cash Flows

-- Characteristics of the Mortgage Backed Securities:
  -- Types of mortgage pass-through securities
  -- Characteristics of pass-through securities
  -- Demographics
  -- Seasonal patterns
  -- Home sales
  -- Availability of money
  -- WAC - WAM - WALA
  -- Prepayments - PSA benchmark

-- An introduction to the MBS Marketplace (Securitization and Processing of Mortgage-Backed Securities):
  -- Over The Counter
  -- Trade Types
  -- Transaction Size
  -- Variance
  -- Settlement Periods

-- Process Lifecycle of a MBS Trade in the (Securitization and Processing of Mortgage-Backed Securities):
  -- Execution of Securitization Processing
  -- Risk Assesment and Management Process in Securitization Processing
  -- Trading and Allocation of capital and resources in Securitization Processing
  -- Settlement Processing of Securitization Processing

Fixed Income Trade Lifecycle: Introduction, Example, Process & Functions

In this article, we will explain the Fixed Income Trade Lifecycle. All topics, examples, introductions, steps and processes involved in Fixed Income Trade Lifecycle are explained.

Related: Fixed Income Securities Market: Introduction & Example
-- Fixed Income Products of Fixed income Market : What makes up a particular market? It's the assets that are traded (bought or sold) in that market. Hence, a good starting point for Fixed income Market Introduction will be the Fixed income Security types. Let's begin with the introduction of the assets traded in the Fixed Income Security Markets. Here is the list:

-- US Government Fixed Income Securities

-- Municipal Fixed Income Securities

-- Corporate Fixed Income Securities

-- MBS Fixed Income Securities

-- CMO Fixed Income Securities

-- ABS Fixed Income Securities

-- Participant of Fixed income Market :

-- Buy-side Fixed Income Market Participants: These are the typical big investors, which may include Insurance Companies, Investment firms, Portfolio Management companies, func houses, etc.

-- Sell-side Fixed Income Market Participants: These are the typical market makers. They act as broker dealers and maintain required liquidity in the market.

-- Industry Utilities Fixed Income Market Participants

-- Industry Service Organizations Fixed Income Market Participants

-- Fixed income Markets : Different products are traded differently. For e.g. though these is a lot of online shopping, but people still prefer to purchase fresh vegetables from the farmers in the local vegetable market. Similarly, most of the Fixed Income Securities being the OTC (Over the Counter) Securitites, are having different kinds of markets for them.

-- Marketplaces for Trading Fixed Income Market

-- Electronic Trading for Fixed Income Market

-- Telephonic Trading for Fixed Income Market

-- Inter-dealer Brokers Trading for Fixed Income Market, where trading is done between 2 brokers or dealers

-- Order Processing & Execution of Fixed income Market :

-- Order Receipt & acknowledgement

-- Routing to the clearing & settlement agency

-- Middle Office Functions of Fixed income Market :

-- Trade Entry into the system for enrichment and validatiopns

-- Trade Reporting to counterparty, custodian, regulators, etc.

-- Inventory Management - involves book keeping, margin requirements, etc.

-- Confirmation/Affirmation - Instructions sent electronically or snail mail for confirmation of trades and acknowledgements.

-- Trade Comparison in Fixed income Market :

-- Real Time Trade Matching

-- Industry Utility

-- Processing of Trade

-- Clearance Function in Fixed income Market :

-- Trade Guarantee

-- Central Counterparty

-- Novation

-- Industry Utility

-- Settlement in Fixed income Market :

-- Environments

-- Exchange of Value

-- Federal Reserve/Clearing Banks

-- Depository Trust Company

-- Fail Control & Financing Opportunities in Fixed income Market :

-- Fails

-- Financing

-- Securities Borrow/Loan

-- Inventory Control in Fixed income Market :

-- Depository Trust Company

-- Federal Reserve/Clearing Banks

-- Physical Securities

-- Stock Record in Fixed income Market :

-- Books & Records

-- Income or Money Collection & Income Distribution in Fixed income Market :

-- Interest

-- Principal Repayments

-- Corporate Action Processing of Fixed income Securities Market :

-- Types of Events

-- Event Processes

-- Trends Identifiers of Fixed income Market Trading:

-- Fixed Income Trading – On an Exchange?

-- The Impact of Credit Rating Agency Optimism