Release of Book 193 - AML, KYC - Notes 2026

                                      Happy to inform that today

 I have shared my 

Book 193 - AML, KYC - Notes 2026

(related to IBC Code examination of IIBF)

Those who need may send a message in WhatsApp to me. 

Sekhar Pariti

+91 944064

DBC 2430 - Credit Default Swaps (CDS)

 

The Banking Tutor 

                 Daily Banking Concept -  2430 

Credit Default Swaps (CDS)

 

Credit Default Swaps (CDS) are derivative contracts that transfer credit risk from a buyer to a seller, acting as insurance against borrower default.

BTL 897 - Joint Supply

 

The Banking Tutor’s Lessons

BTL 897                                                                                09-05-2026

Joint Supply

Joint supply is an economic term referring to a product or process that can yield two or more outputs. Common examples occur within the livestock industry: cows can be utilized for milk, beef, and hide. Sheep can be utilized for meat, milk products, wool, and sheepskin. If the supply of cows increases, so will the joint supply of dairy and beef products.

Where joint supply exists, the supply and demand for each product is linked to the others originating from the same source. For example, if demand increases for wool and sheep farmers, therefore, raise more animals for wool, there will be a related increase in sheep meat production. This increased production will lead to greater meat supply and potentially lower prices.

In some cases, the proportions of the joint products are nearly fixed, such as with cotton and cottonseed. In such cases, proportions cannot be varied. In other cases, the proportion can be variable. For example, through cross-breeding, it is possible to breed sheep either for wool or for meat. So the quantity of one can be increased at the expense of the other to a degree. Analysts keep a close eye on products in joint supply because investments in one can be significantly impacted by what happens with the other.

Another important issue with joint supply products is the allocation of expenses. Since both products are derived from the same source, it is often difficult to figure out how to divide up expenses.

Sekhar Pariti

+91 9440641014

DBC 2429 - Credit Derivatives

 

The Banking Tutor 

               Daily Banking Concept -  2429 

Credit Derivatives

 

Credit derivatives are financial instruments that transfer the credit risk of an underlying portfolio of securities from one party to another party without transferring the underlying portfolio.

DBC 2428 - Horn Effect

 

The Banking Tutor

Daily Banking Concept -  2428

                                Horn Effect 

The Horn Effect is a cognitive bias where one negative trait or impression of a person, product, or situation causes overall perception to be skewed negatively.

DBC 2427 - Social Loafing

 

The Banking Tutor 

               Daily Banking Concept -  2427

                             Social Loafing 

Social loafing is the psychological tendency for individuals to put forth less effort when working in a group compared to working alone.

BTL 896 - Value Investing

 

The Banking Tutor’s Lessons

BTL 896                                                                               06-05-2026

Value Investing

Value investing is an investment strategy that involves buying stocks trading at a significant discount to their intrinsic value, often coined as buying "dollar bills for 50 cents". Popularized by Columbia Business School professors Benjamin Graham and David Dodd in the 1930s, this approach views a stock not just as a trading ticker, but as a direct percentage of ownership in a real business.

Value investing is a disciplined, long-term investment strategy focused on purchasing securities at a price significantly lower than their intrinsic value.

The 4 Pillars of Value Investing

Intrinsic Value: The true financial worth of a business based on fundamentals like cash flows, assets, earnings, and competitive advantage.

Margin of Safety: The discount between the calculated intrinsic value and the market price. Graham recommended buying at two-thirds or less of true value to absorb analytical error or market downturns.

Market Inefficiency: A rejection of the Efficient Market Hypothesis (EMH). Value investors believe stock prices temporarily diverge from true value due to fear, greed, and short-term noise. The strategy relies on the market eventually recognizing a company's true value, which can take years.

Contrarian Mindset: Moving against prevailing market trends—buying when others are fearful and selling or holding cash when the herd is exuberant. 

Key Metrics Used by Value Investors

Price-to-Earnings Ratio (P/E): Low P/E  ratios compared to the industry average often indicate potential value stocks.

Price-to-Book Ratio (P/B): Used to determine if a stock is cheap relative to its assets.

Dividend Yield: High, consistent dividends are often favoured as they provide returns while waiting for price appreciation.

Value investing requires patience and the conviction to hold fundamentally strong companies during market downturns.

Sekhar Pariti

+91 9440641014