FTIP case studies
FTIP · Put your knowledge to work in context.
FTIP is a professional certification exam in financial products, investment analysis, and advisory practice. The exam is delivered in multiple-choice format and spans six domains: financial products and markets; investment analysis and valuation; portfolio management and asset allocation; risk management; regulation, ethics, and professional standards; and client advisory and financial planning. The FTIP case studies are 5 cases and about 3,098 words.
1Make-Whole Call or Yield Trap? Switching a BBB Bond
An investment committee is reviewing a $12 million position in the 6.25% senior notes due 2031 of a BBB-rated industrial issuer. The bonds are priced at 94.50 to yield 6.80%, a 210 bp spread over the 4.70% five-year Treasury, with an option-adjusted duration of 5.4.
525 words, about 3 min2SaaS Minority Investment: DCF vs Market Multiples
A growth-equity fund is valuing a private B2B software company for a 30 million minority investment. Trailing revenue is 48 million; management reports ARR of 52 million growing 28%, gross margin 78%, and net revenue retention 112%.
672 words, about 3 min3Foundation Allocation: Spending, Illiquidity, and a 7.5% Target
A 250 million foundation has a 4.5% spending policy, a 2.8% inflation assumption, and 0.60% all-in investment cost. Its current allocation is 45% global equity, 35% core bonds, 10% private equity, 5% real estate, and 5% cash.
621 words, about 3 min4VaR Exceptions, Clustering, and a High-Yield Request
A 1.2 billion multi-asset portfolio uses a one-day 99% historical VaR model. Over the last 250 trading days there were 5 exceptions, meaning losses exceeded VaR on five days.
641 words, about 3 min5Client Tip, Revenue Pressure, and the Investment Committee
A portfolio manager at a registered investment adviser manages $800 million for 120 clients. A long-standing client who is a director of a listed company tells the manager, in a private call, that the company will announce a takeover bid for a competitor at a 40% premium next week and asks the manager to ‘buy some of the competitor for my account before it moves.’ The manager’s firm has a policy prohibiting trading on material nonpublic information, but the compliance manual does not specifically address client-originated tips.
639 words, about 3 min