By Sara & Mikaela
Another week, another challenge! This, our third week, we have been working together with the Risk Solution team which for us means new concepts and new cases. So, what do they do in Risk Solution? In short, the team offers customers advice on how to hedge their risks in the best way, among others. During the week, we have for example discussed different risk measurements like VaR (Value at Risk) and CFaR (Cash Flow at Risk) and looked into how to calculate those.
A new week means a new case (challenge ;-)). This week, our case was to investigate a client’s market risk, primarily based on the balance sheet, EBITDA risk and leverage risk. We based our findings on public figures and gave suggestions on how the client could hedge risk utilizing the balance sheet and financial derivatives.
The most challenging part of the case was to make reasonable assumptions since the annual and quarterly reports had overall aggregated data and missed valuable information. We went at it, and put together our conclusions in a presentation and presented it to the group.
Thankfully, it was well received! Our presentation was (of course) combined with socialising and a Friday beer 😊.
Our first three weeks here have flown by quickly – time flies when you are having fun. This week has been really hot in Stockholm, over 30 degrees!! So, we obviously had to squeeze in some ice cream breaks in between work.
Our next stop will be at the FX desk where will get insight to the foreign exchange (FX) market. But first … we will have one week’s vacation!
As I write this post, my third week is coming to an end. Just like the previous weeks, the time has fled by way too quickly. Since it is impossible to tell you about everything I’ve learnt here – as it would be a very, very long text – I’ll do my best to summarize highlights of this week.
I began the week together with the other interns, Sara and Mikaela, at Risk Solutions. We met the team and got an introduction to what they do and how they go about doing it.
The rest of my week, I spent at the Credit Trading desk. Here the focus was on learning as much as possible about credit trading, and I must say, the team has really gone out of their way to accommodate my needs, explaining stuff and answering my many questions. I have, among others, learnt about everything from hybrid bonds to different ways to hedge risks. I also got the opportunity to practice writing a sales pitch together with one in the sales team.
In between different learning sessions, I have had time to work on the project I started during my week here. This week, I started processing and cleaning the data to prepare it for use. I also began reading up on different machine learning practices which are going to be used later on in the project.
So, never a dull moment here, on the contrary. People are very attentive, and the learning sessions and projects I’m in are very interesting – and I can’t wait to see what next week will bring. I’ll tell you all about it!