Real Wall Street Expert and Instructor Reviews BBC's Industry (Episode 3)

Very helpful thankyou!

This is all so interesting, thankyou for explaining it

Love these videos

Keep them coming! Love these videos

Great vid again, interested to see your thoughts on how Harpers mess up at the end plays out in the next ep

Really helpful, thank you for explaining. And your clear passion for the industry makes your videos even more interesting to watch

Hello Alastair,
I've gone on a tear through your 3 videos on Industry. Absolutely lovely commentary and scene selection.
Your massacre of Harper's structured product pitch was side splitting. I would have never picked up on it myself had you not pointed it out. My face turned as red as yours when you highlighted the irony of it being a total ANTI-hedge 😂😂😂 Financial... Well high-financial literacy isn't a common trait amongst drama fanatics so that piece of comedic gold would've gone over many people's heads.
Looking forward to episode 4 !

Hmmm. It was mentioned that in IB you work long hours and compete for personal versus work time but that's okay b/c the money is so good. In another video however it was mentioned that IB starting analysts make around 50k. That doesn't sound that great.

I think Harper's pitch isn't thaaat crazy, since in the same episode Eric is saying that they needed to be "sharper" at packaging strategies across asset classes. So, remember the purpose of a Sales trader is to offer multiple financial products to multiple clients ranging from investment funds to corporations and as they increase client coverage, sales revenues along with commissions will increase for the desk overall.
What she would pitch the client is the idea that the Homebuilder's sector is overvalued, thus offering protection by selling them a call option on gold, a put option on the Homebuilders Index, and a CDS on the Homebuilders. This would create a sort of an "insurance policy" in the case the Homebuilder sector is actually overvalued and decrease in the observable future. That's why she refers to it as the "ultimate hedge" for an investor and that it's margin ( revenue vs cost ) is big enough to pay us ( Pierpoint) while they (the clients) own it, cause remember that in all three products the seller receives the initial premium and the traders can hedge that position pretty easily by doing the opposite.
Nonetheless, awesome series and videos, greetings from an FICC EM Sales Intern.

Excellent commentary. Just brilliant.

Wouldnt be more resonable to buy a call option on the 10y treasury when there is a major meltdown? Also what would be the strategy if the value of treasuries devalue?

I wonder if Harper's early ideas, which as you say are absurd, are part of why Eric takes to her. He recognizes her brilliance, but frequently allows her to make amateur and borderline unethical mistakes. For example, when she gets the notional wrong with Aubrey and decides to fix it herself, she risks losing hundreds of thousands of dollars for the company, but when she fesses up to Eric he doesn't reprimand her in the slightest, instead complementing her on her resourcefulness in trying to fix the mess. When she gets a win with Bloom, Eric dresses her down slightly. He is deliberately inflating her ego but at the same time ensuring that she's just inept enough that she will remain dependent on him.

I have a dog that looks exactly like those two dogs in the painting.

damn,.. our hedgefunds used to pay 10 cents a share Commish plus inside spread. and we got 35% is that

This is gold! Thanks for sharing

great insight. do they carry on with the same work pattern / working hours as they progress? how many years do they carry on with these brutal working hours?

When Harper says the product is a hedge, I wonder if she's talking about the entire product being a hedge for people who hold the consensus view and are therefore long?

Hello. Can I trouble you for a season 2 analysis??

Of course it’s a hedge. Texas hedge