Purchasing Managers’ Index In this article, Bijal GANDHI (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) elaborates on the concept of Purchasing Managers’ Index This read will help you understand the formulation of PMI and it’s importance for each of the stakeholders. Introduction The Purchasing Managers’ Index (PMI) is a statistical estimation … Read more
In this article, Georges WAUBERT introduces you to bond markets. The bond market allows the financing of medium and long-term needs of States, local authorities and companies. In return, it offers opportunities to invest medium and long-term financing capacities. In order to understand the bond market, it is necessary to distinguish two markets. The primary market, … Read more
The 2007-2008 subprime crisis In this article, Mark RAHME (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) explores the 2007-2008 subprime crisis. Finance in 2021 was unlike anything imagined: cryptocurrencies going up and down, vaccines, trading restrictions, … all and all, it is safe to say that the year is a very particular one. … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the job description of a Quantitative Analyst. Introduction Quantitative analysts or “quants” are professionals that work on designing, implementing, and analyzing algorithms based on mathematical or statistical models to help firms in taking financial decisions. With the … Read more
2020: a year of all records The year 2020 has been the scene of the greatest economic downturn since the Great Depression and the fastest market collapse on record. From mid-February onwards, stock markets have plummeted. In one month, the Paris stock market fell by nearly 40% and the New York stock market by more … Read more
In this article, Alexandre VERLET (ESSEC Business School, Grande Ecole Program – Master in Management, 2017-2021) explains why financial markets invented futures and how they function. Where do futures come from and how are they different from forwards? Sometimes, derivatives get so complex that finance can seem quite disconnected from real-world economics. Nevertheless, futures were … Read more
Who will become London’s heir as Europe’s main financial center in the wake of Brexit? In this article, Alexandre VERLET (ESSEC Business School, Grande Ecole Program – Master in Management, 2017-2021) explores the Brexit’s consequences on the City’s monopoly over European finance, and which capital could possibly claim the throne. A historic perspective on the … Read more
In this article, Alexandre VERLET (ESSEC Business School, Grande Ecole Program – Master in Management, 2017-2021) provides 10 brain teasers from real-life investment bank interviews, and explains simple ways to solve it. In most finance interviews, applicants must face the feared trial of brain teasers, defined as unusual questions which have basically nothing to do … Read more
Gamestop: how a group of nostalgic nerds overturned a short-selling strategy In this article, Raphaël ROERO DE CORTANZE (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) talks about the Gamestop case which has shaken up Wall Street last january. Gamestop: an unprofitable company with slender turnaround prospects Gamestop is a US company … Read more
This article written by Akshit Gupta (ESSEC Business School, Master in Management, 2019-2022) presents the role and functioning of a Hedge fund. Introduction Hedge funds are actively managed alternative investment vehicles that pools in money from several investors and invest in different asset classes. Only accredited investors have the access to invest in hedge funds. … Read more
This article written by Akshit Gupta (ESSEC Business School, Master in Management, 2019-2022) presents the strategy of Value Investing. Introduction Value investment strategy is an investment style where investors look for shares that are undervalued by the market. In the companies that are undervalued, the current share price of that company is less than its … Read more
Understanding financial derivatives: forwards In this article, Alexandre VERLET (ESSEC Business School, Master in Management, 2017-2021) explains why financial markets invented forwards and how they function. What’s a forward? A forward is a derivative that is rather simple to understand. To illustrate the principle, let’s say you own a farm that you want to sell … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the job description of a Portfolio manager. Introduction A portfolio manager is an employee responsible for developing, implementing, analyzing, and managing the asset portfolios of the clients (institutional or retail investors) of the asset management firm he/she is … Read more
This article written by Akshit Gupta (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the job description of a Sales analyst. Introduction Sales analysts are sell-side analysts that develop and pitch ideas to sell financial securities to the firm’s clients and build relationships with them. They are responsible for analyzing and … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the trading strategy of Short Selling. Introduction Short selling refers to the act of selling a stock without actually owning it. By definition, an investor makes a short sell when he/she borrows a stock, then sells it … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the role and functioning of an Asset management firm. Introduction Asset Management is one of the lucrative fields of the financial industry over the world. As the name suggests, it is essentially handling and management of assets … Read more
This article written by Akshit GUPTA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the strategy of Growth Investing. Introduction Growth investment strategy is an investment style where investors look for companies, industries, sectors, or markets that are rapidly growing and have the future potential to grow at a higher-than-average rate … Read more
This article written by Akshit Gupta (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the job description of a Risk Manager. Introduction Ever since the financial crisis of 2008, new rules and regulations have been put into place by different regulatory authorities across the world. These rules and regulations demand strict … Read more
In this article, Alexandre VERLET (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains the GameStop saga. Why does the app “Robinhood” bears its name so well? Did hedge funds actually kneeled down before a bunch of Reddit users? What is a short squeeze? Let’s find out! Speculation on GameStop For some, … Read more
In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents fixed-income products. Introduction Fixed-income products are a type of debt securities that provides predetermined returns to investors in terms of a principle amount at maturity and/or interest payments paid periodically up to and including the maturity date (also known … Read more