What is Deep Learning in Finance? As a subset of machine learning, deep learning teaches itself patterns and relationships by analyzing vast amounts of data. Unlike traditional systems that follow pre-programmed rules, deep learning learns on its own — much like a human brain. It’s similar to how people can improve face recognition or languages…
The Hidden Cost of Poor Naming Conventions Imagine logging into a data room, expecting quick access to critical reports only to find a mess of inconsistently named files. You waste valuable time sifting through the chaos, and in the worst cases, you have to call the client just to locate what you need. However, this…
If you’ve used AI tools like ChatGPT before, you’ve likely run into a common issue — shallow, incomplete responses. These tools tend to analyze questions individually, offering generic summaries without context or failing to identify key financial patterns. Chain-of-Thought (CoT) prompting solves this by guiding AI tools through a step-by-step reasoning process, generating logical and…
In this conversation, Meeyeon and Ryan discuss collateralized mortgage obligations (CMOs), exploring their structure, relevance, and the impact of the Global Financial Crisis. They delve into the customization of CMOs for different investor risk profiles and the role of special purpose vehicles (SPVs) in isolating mortgage assets. The discussion highlights the importance of financial education…
The Challenges of Industry Research for Financial Analysis As a financial analyst, you’re expected to understand industries inside and out — whether you’re preparing a market report, evaluating a company for a loan, or benchmarking financial performance. But here’s the problem: Reliable industry data isn’t easy to find. Scouring through government reports, earnings transcripts, and…
Why Normalizing an Income Statement Matters in Financial Analysis Strong financial analysis starts with a clear view of a company’s real earnings. But one-time gains and losses — known as non-recurring items — can distort financial statements, making it harder for you to assess financial results. That’s why you need to normalize income statements to…
In this episode of CFI’s Member Spotlight podcast, Meeyeon sits down with Francis Faucher to discuss his unconventional path into finance. Originally aspiring to be a doctor, Francis discovered his passion for finance through networking and education, ultimately embracing an entrepreneurial mindset that shaped his career. He shares his experiences, from his first banking job…
Why Understanding Valuation Mistakes in Job Interviews Matters Valuation case studies can make or break a job interview, especially for highly competitive roles in investment banking, equity research, and private equity. Miscalculate enterprise value or apply the wrong multiple, and you risk looking unprepared in front of hiring managers. Let’s make sure that doesn’t happen….
What is a Collateralized Mortgage Obligation? A Collateralized Mortgage Obligation (CMO) is a structured fixed income product that repackages mortgage-backed securities (MBS) into multiple tranches. Each tranche offers a different level of risk, return, and maturity, allowing investors to better manage cash flows and prepayment risk. Since their creation in 1983, CMOs have become an…
Why Should You Learn Valuation? If you’re looking to build a career in investment banking, equity research, private equity, or FP&A, valuation is a core skill you’ll need to master. Financial analysts use valuation models to assess how much a company is worth, if buying another company is a good deal, and identify good investment…
