Citi TTS

how did fed cutting interest rates impact market and TTS?

"When people can't earn attractive interest income on their money in savings accounts and certificates of deposit, they either use their money to pay down debt or invest in goods, services or assets like houses and stocks. This means banks lose deposits." how whole pandemic and government support has dropped interest rates and the lower interest Raes have decreased revenue that citi makes on all of deposits that TTS generates --> declining interest rates is so big on TTS because TTS is the largest generator of deposits for Citi (over half a trillion) but as interest rates have dropped, they are definitely making less on despots so that is a difficulty

tell me about BMC

#3- Forecasting GDP Analysts often publish the likelihood of the performance of economic indicators. Though not precisely in its nature, these estimates are often based on simulated economic models, which provide a general overview of how the economy is likely to perform shortly. Investors try to assess the mood of the economy based on how pessimistic or optimistic are prevailing indicators plus the future assessments of leading experts. This helps them identify possible inflection points and base critical economic decisions on them.

recent citi activity & transaction?

- Jane Fraser becoming ceo -Deposits continued to increase, and revenues are up 3% year to date. Treasury and trade solutions, the backbone of our global network, is down only 4% for the quarter and 5% for the year in constant dollars despite significantly lower interest rates. Citi on Tuesday reported net income of $3.2 billion — more than double the $1.3 billion it reported last quarte, Revenue for the nation's third-largest bank was also buoyed by double-digit percentage-point increases year over year in fixed-income trading (18%), equities trading (15%) and deposits (16%) --> Card revenue, meanwhile, dropped 18% for the world's leading credit card issuer, and spending volume fell 10%. This, too, represents a leveling off, when compared with decreases in card spending in the last week of March (30%) and during the second quarter (24%) - Citi announced transgender and nonbinary customers will no longer be forced to use birth names on eligible credit cards: the move is part of the "True Name" program with Mastercard, which offers approved customers the option to choose the name they want to appear on participating credit cards -Citi had been engaging in "unsafe and unsound banking practices," including in its programs to catch money launderers and was fined 400 million

how is TTS different than any other business of citi?

-"backbone of Citi" most stable part which handles day to day operations of clients, without it citi would be unable two mange its global presence and its relationship with all these huge institutions -TTS focus on innovation: TTS is committed to innovation and continues to develop new products and capabilities by partnering with FinTechs and integrating Machine Learning, Artificial Intelligence, Natural Language Processing, and Blockchain solutions -TTS is so large where I know the only way to operate is through teamwork: TTS itself would be a Fortune 500 Company (over 9 billion in annual revenue) and would rank 74th in Net Income among all S&P 500 Companies, TTS manages almost 450 billion in client deposits globally, almost half of Citi's deposit base

what is going on in market/economy and how will this affect TTS? what are some challenges and opportunities of this?

-1s biggest thing: how whole pandemic and government support has dropped interest rates and the lower interest Raes have decreased revenue that citi makes on all of deposits that TTS generates --> declining interest rates is so big on TTS because TTS is the largest generator of deposits for Citi (over half a trillion) but as interest rates have dropped, they are definitely making less on despots so that is a difficulty -2nd: when pandemic was bad, of course business activity declined so when business activity is down there is less payments being made less international trade transactions -3rd: complete disappearance of business travel has been difficult on commercial card business: one main business line of citi's is issuing travel corporate cards but when employees of big companies are not traveling no one is going to spend money on these citi corproate cards so that part of TTS has been affected

Why would a company issue equity rather than debt to fund its operations?

-If the company feels its stock price is inflated they can raise a large amount of capital compared to the percentage of ownership sold -If the projects the company plans to invest in with proceeds may not produce immediate or consistent cash flows to pay debt -If the company wants to adjust cap structure or pay down debt -If the owners of the company want to sell off a portion of their ownership

what have been recent international events you have been keeping up with?

-ant recently cancelled IPO -european eocnomy is stalling with increase in covid cases and was relying on us stimulus deal (Investors in Europe had been looking for a big stimulus to boost inflation and economic growth as a spillover effect from the U.S.) -Austria and France are planning a joint push for tougher European Union-wide measures to stamp out Islamist extremism on the continent after terrorist attacks in both countries in recent weeks -Heavy rains from Tropical Depression Eta brought death and devastation to Central America, with Honduras ordering the evacuation of a major valley and Guatemala reporting the deaths of more than 50 people -pakistan Drops TikTok Ban After App Pledges to Police Content

what you like to do in free time?

-cook & run

why should we hire you/what makes you different

-diverse exerpeicnes -challenge myself in anything I do -energetic and positive

why slp/what do you hope to get out of it?

-exposure too multiple lines of city ECG business and specifically TTS and get exposed to culture of citi and its people, mentorship opportunities -get to connect with tother students interested in finance -get to work on a huge collaborative project which eventually I will get to present at the end -Executive Speaker Series; lunch and learns; and cross business networking events

greatest weakness

-focus on detail (I&e project)

speak more about DIRA what have you learned from that?

-greater understanding of world around us -teamwork skills -communication skills

speak more about BUILD what have you learned from that?

-how to adapt -analytical skills -problem solving skills

speak more about BOW/what have you learn from that

-leadership need o step up like for ethics of enttrepernurship and creating workshop events -teamwork skills need to work in teams to problem solve like instagram thing or planning females ineentrpernsuhip -comunication skills wehethtere it is comuncaiing with people eon committee and making sure everyone has a role or maintaining outside relationships for BOW

what do you think differentiates citi from competitors in TTS?

-most simple thing is the presence and capability in more countries than anybody else that's why shell oil can come to us and give local accounts in 50 different countries where they operate rather than having to higher 50 different banks --> the globality and network is what differentiates us

in financial services industry what are some challenges and opportunities for citi/TTS:

-opportunity: seeing that in terms of competitors there are less and less banks around the world that are trying to do their own global network so we see some of competitors retrenching like Wells Fargo that has closed offices in number of countries and Deutsche bank is experiencing many problems (always in news) so this leads to more opportunities for citi -challenge: continue two see fintechs trying to take business away from banks so that can continue to be a challenge

speak more about ROTC what have you learned from that?

-teamwork -leadership -communication

stories:

-why duke story (basketball) -amazon river story -Wall Street class story -example of time you saw connection with latin -skiing went down tree trail stuck with sister had to stay positive (took risk as well) -ROTC theatre + AIA -shake break + motive through food (shake break) - sister eating disorder project heal -ancient greek not smartest in room -tennis partner mad at me had to stay positive -motivate tennis team -project care f*g ethical decision -LHS budget + fashion show -adopt from high school to duke culture -pub pol 155 memo mess up -tutor girl did not like me -pub pol 301 produce story -tented with people for basketball, was hard to do work because some people wanted to have fun in tent others didn't (pitched idea to make a study tent with good lighting --> no one wanted to step up I did) -public speaking swich ted talk pressure/difficult -love to cook, did a lot during quarantine kept me busy (read recipe, gather supplies, go to grocery store, cook, eat with family) -motivate to run half marathon during quarantine and did it with dad, woke up early on Father's Day and surprised him -disappointed/had to adopt BUILD institute was (helped during challenging time, , took initiative taught myself CRM, pitched office hours idea, organized spreadsheet + advocated/market for company) -BOW Instagram story -BOW ethical entrepreneurship event (stepped up as leader) -BOW slideshow to get to know + texted everyone -DMC the coop marketing strategy -I&E class suggested use chairs one per table a wire -I&E social entrepreneur class too attention to detail failed to miss bigger picture -DIRA noticed from personal experience only way to write was to be in club talking with friend, we pitched this idea --> got idea from morning brew + classics combined -hedgefund outreach -roommate alarm tone story -this semester managing time (walk to class do work, many classes)

why citi?

1. First and foremost, the people are what make the bank, and from talking to people at Citi, it's clear the people are not only super smart, but also truly care about you and really value collaboration and teamwork. For background, my interest in citi began at duke city networking sessions where I met people likejohn ladaney who really spurred my interest in TTS. He has been kind of enough to constantly take the time to help me understand the role of an analyst and the culture of collaboration, diversity, and growth at Citi. I've also been able to talk to many more Citi people and from the MD to analyst level I know Morgan Stanley's value of collaboration and teamwork is a great cultural fit for me, where I will truly feel like I am supported and can learn a lot in this environment where peopelr really care aboutt helping me adn heelping me grow. 2. most global bank: really appealing to me, from studying classical studies to public policy I have really come to appreciate what happens on a global scale and appreciate different cultures and learning about the world we live in --> citi and its globality unlike any other bank is truly astounding and appealing to me 3. citi really values diversity very important to me, for example with Jane Fraser I think it is amazing citis the firs major wall street back to have a female as face of company makes me feel valued, diversity of thought and people is very important, also citi specifically within TTS has women's networks to provide mentorship and support for females and I thtink this is really great and a continuation of the support I have gotten in BOW

why duke?

1. dad did residency at duke so grew up watching duke in march madness (duke similiar to MS being first bank i was familiar with) I remember watching duke win in 2010 championship and i remember seeing how fun and spirited looked the school and people 2. as I progressed and started to look into duke, i saw it wasnt only this type of passionate energy when it came to basketball but also to school and leearnign about things they loved, learned of amazing alumni strong network, heard of culture work hard play hard where there was this pre-professional environemtn espeically regarding clubs --> knew duke would have a strong alumni network passionate about school & have great opportuntities to be a part of clubs which helped you in real job, wanted this experience 3. people want to have fun and work hard, people literally tent out in freezing cold for 8 weeks while having work + they manage to do work + have fun 3. very similiar to MS, duke filled wih vibrant, spirited people who are not only passionate about basketball but also passionate, hardworking, and willing to help about learning more and pushing yourself --> there's this type of comeptitive environemn where eveyroen wants to push themselves to grow and others

considering your own personal strengths/skills how does that qualify you for this internship?

1. love learning more/desire to learn and challenge myself: I know TTS requires putting in hard work and challenging yourself to learn more, I think my past really shows my drive to push myself and challenge myself to learn more and put in the long hours --> whatever challenge I take I put the hard work in put extra hours in because I love to learn more 2. my team working skills --> may ability to effectively communicate, think, and co-work in team settings iv very important will be working with many people on many different teams in TTS and being able to effectively communicate and collaborate is important (ex: BUILD) 3. good analytical skills show all of this through BUILD example

what are steps of a stock analysis:

1. performing due dilligence (look at company business model and comapny story --> specific steps includae situation overview, company descripttion, industry competittion, fast or slow growth, turnaround/resurcturing, looking at past quarterly reports, understanding future things have in store) 2. technical skills/stock analysis (financial model/futture expectations assumptions & valuatiton methodologies --> continue growth, slow down or negative grwoth, overvalue, undervalue) (get info from capital iq or Bloomberg or 10Q in Edgar) 3. investtment thesis (investment thesis & risk --> create a price target/potential return, recomendation, catalyst, management execution, general economy, competition, regulation)

how do you keep up with market?

1. read morning brew every morning, read WSJ every night 2. keep a finance journal of things of 3 important things that have gone on in market 3. every night speak to my dad about it

what are some finance news you have edited for DIRA?

1. really intersting read aboutt how Chipotle was one of the first brands to launch a presence on TikTok. In a little over a year, the brand has launched five campaigns that have led to more than 1M followers and billions of impressions. The emerging GenZ platform has helped drive two top digital sales days and connected the brand to its GenZ target audience 2. I personally wrote peicce paralleling ancient weapon laws to modern day gun laws and how it aually helped further ancient roman and athenian economy advance 3. Soccer is being used as a tool in Western Europe two fight islamaphobia. Both studies showed that while there are periods of decline and Muslims are still judged differently in contrast to other groups, these athletes have contributed to progression in Muslim acceptance. The evidence shows that increased familiarity with Muslims has led to the normalization in the treatment of them as people, while simultaneously giving more opportunities to Muslim community in Western Europe financially 4. read article on girl from india from her perspective her havign tik ttok b/c american phone whil ebannd in india 5. currently in process of editing kid from china his perspective on the trade war

questions to ask them

1. what is the community like within TTS and what are some community events? 2. what drew you to TTS as opposed to other businesses within ICG? 2. what has been the most challenging part of your job during covid & how did you manage to adopt? 3. how has your role changed from the time you started with TTS to now? 4. I understtand TTS really values innovation, when have you had the opportunity to be creative or take advantage of the innovative resources within TTS? 5. I understand citi has really made feats to enhance diversity, have you seen any changes in culture/impact of this? 6. how has TTS been able to be so steady even in time when COVID was taking a direct hit to TTS? 7. how do you think TTS would be impacted by a relief package? 8. what has been one of hte most chllenging things about your job and how have you overcame it? 9. how can i continue to build the skills needed for a carreer in fiannce or TTS in my timee at duke or in free time? 10. What are some of your personal interests/hobbies? 12. are there any exciting future prospects you are working on? 13. how do you manage certain barriers when dealing with international clients like timezone, language barriers, etc.? 14. how do you manage risk? 15. what is relaitonship like with analysts, vps, mds? 16. what is onee thing you wish you knew if you were in my position? 17. how have you grown as a thinker, banker, teamworker, and innovator since you have joined citi? 18. what separates a great TTS analyst from a good one?

structure of TTS:

3 parts of citi: 1. institutional client group (TTS) 2. global consumer bank 3. corporate functions 5 segments of TTS: 1. channels 2. payments and receivables 3. trade 4. commercial cards 5. liquidity management

why TTS?

4 main reasons: its globality, its commitment to innovation, helping companies on day to day business, and how it is backbone of TTS -most global business within the most global bank: once again very appealing have always been interested in learning about different cultures and people from classics too public policy and I know that at TTS it is the only division guaranteed an international role ration, this is super cool to me would love to feel like i'm making an impact in different parts of the world and really learning from such huge international presence & TTS serves over 80% of the world's Fortune 500 Companies -TTS is committed to innovation and continues to develop new products and capabilities, by partnering with FinTechs and integrating Machine Learning, Artificial Intelligence, Natural Language Processing, and Blockchain solutions and I know TTS has innovation labs in Singapore and Dublin --> constantely using creative thinking in team settings to create solutions/products for client needs (talk about nividha and mich girl) -helping clients like different governments or even large companies like Tesla, Uber, shell manage their cash and find innovative solutions on a day to day basis rather than working on one huge transaction or deal --> you are constantly working with these huge companies on a day to day basis tot help them with daily work -TTS is backbone of Citi and is one of must stable businesses within Citi and one of the most efficient, without TTS Citi would be unable to maintain its globality and its relationships across the globe and without TTS corporations would have a hard time managing all the cash they have in the most innovative and efficient way --> clearly it's very valuable work being done and would love to contribute and gain exposure to how Citi operates

why finance?

After talking to a number of people in finance and doing my own research, there are three aspects of finance I find particularly appealing. First, similar to my time at Duke I would get to wok with the most hard working and intelligent people in a. team oriented setting. I understand that in finance you work in small teams and the opportunities to grow, learn a lot, and gain mentorship Fromm these highly intelligent people is an exciting opportunity because I would hone in on the technical and soft skills and grow as a collaborater and thinker. Second, I understand in finance you are helping companies perform daily operations and help them function. As someone who likes to make a lot of connections to things that I am learning to what is going on in the world around me, exposure to this level of how a business functions is something really appealing to me. Lastly, the abilitty to learn more about finance and develop analytical skills is unmatched. Analytical skills are undoubtedly the most important skill set for anything in life, and I know I will really be able to build upon really important analytical skills in a short period of time from the analyst level and upwards. Overall, I'll be gainign exposure to some of the biggest companies, I'll be working with the hardest and brighest peoplee much like my time at Duke, and I will be really able tot expand my analytical skills, adn this is why finance is so appealing to me. The opporutnity to learn in every aspectt is unmattched and I could not be more excited and motivated to be enetering in any other careeer path.

most meaningful thing you have done on your resume?

BUILD (cool o help during pandemic this awesome community) or ROTC

most difficult thing you have had to do on resume?

BUILD (had to adapt they were struggling)

how do you adapt/how have you adopted?

BUILD (keep open mind and effectively communicate) or adapting tot culture of duke

walk me through DCF & pros/cons:

DCF essentially values a company based on the present values of its intrinsic free cash flows and the present value of its terminal value. 1. Project out cash flows for about 5 - 10 years (by using the equation EBIT - taxes + D&A - capital expenditures - change in working capital). 2. Discount these cash flows to account for the time value of money using WACC to determine the "present value" of cash flows at the appropriate discount rate. WACC= Cost of debt times % of debt (1- tax rate) + cost of equity times % of equity + cost of preferred equity times % of preferred equity. 3. Determine the terminal value of the company to predict the value of the company/assets for the years beyond the projection period (5 years). There are 2 ways to find the terminal value either Gordon Growth (also called Perpetuity Growth) method or the Terminal Multiple method. Is using perpetuity growth rate, you must choose an appropriate rate by which the company can grow forever like a long-term expected inflation rate. To calculate terminal value we multiply the last year's free cash flow (year 5) by 1 plus the chosen growth rate, and then divide by the discount rate minus growth rate. 4. Discount the terminal value to account for the time value of money using the WACC. 5. Sum the discounted values to find an enterprise value by summing up the present value of the projected cash flows and the present value of the terminal value which gives us the DCF value.

what on resume is relevant to getting TTS position?

DIRA: it's really made me more interested about learning about the world we live in and having an understanding for what's gong on internationally, I get to learn a lot business in an international context and I think this is really applicable to TTS, also as cofounder of our magazine and as an editor of our finance column I get to really build upon some skills which I think are very important for TTS analyst position: -comunication skills (weekly meetings & in charge of keeping in contact with writers and meeting with them to discuss) - team work skills (work in team setting with other editors and writers to build this journal) -analytical skills (requires editing people's pieces & also currently figuring out hwo tot best design and market this journal to attract students to read it)

prices of DOW, S&P, NASDAQ, etc.:

DOW: 28,390.18 S&P: 3,510.45 NASDAQ: 11,890.93

what's happening with Europe & covid?

England has re-entered a national lockdown, following other European nations. Johnson said deaths in the second wave of the pandemic could potentially exceed those recorded in the spring, with the number of coronavirus patients in some hospitals "already higher than at the peak of the first wave." The election-induced drop in Treasury yields rippled overseas, dragging down borrowing costs in Europe as investors wrote off hopes that a big U.S. spending package could give the global economy a jolt. Investors in Europe had been looking for a big stimulus to boost inflation and economic growth as a spillover effect from the U.S. It became clearer by Thursday morning that the U.S. elections were closer than polls and investors had expected and that there would be no sweeping Democratic "blue wave" to carry out ambitious spending plans. "Everything Europe could be hoping for in terms of traction from the global environment, including a large U.S. fiscal package and a weaker dollar, may not happen after all," The European economy is expected to shrink significantly this year. The European Commission revised down its estimates for a rebound in 2021 as fresh Covid lockdowns take hold. The EU's executive arm expects next year's real GDP in the EU to improve by 4.1% compared with its earlier prediction of 6.1% growth.

enterprise value vs equity value

Enterprise Value is the value of an entire company that would be paid for in an acquisition. Enterprise Value is the value of a firm as a whole, to both debt and equity holders. To calculate Enterprise Value in its simplest form, you take the market value of equity (aka the company's market cap), add the debt and the value of outstanding preferred stock, add the value of any minority interests the company owns, and then subtract the cash the company currently holds. Equity value, commonly referred to as the market value of equity or market capitalization, can be defined as the total value of the company that is attributable to equity investors. It is calculated by multiplying a company's share price by its number of shares outstanding.

What are 3 main financial statements?

Financial statements are a representation of an organization's operations, financial position, and cash flows. The three main financial statements are the Income Statement, the Balance Sheet, and the Statement of Cash Flows. The Income Statement shows a company's revenues, costs, and expenses, which together yield net income. The Balance Sheet shows a company's assets, liabilities, and equity. he cash flow statement shows the amount of cash and cash equivalents entering and leaving a company and breaks the analysis down to operating, investing, and financing activities.

why public policy?

I chose my major because I knew I would be able to gain o learn how to think in an interdisciplinary way and apply my knowledge to real wrold settings, I knew i woul be able to work in teams to problem solve, and I know I would be able to develop analytical skills 1. taught me how to think through an interdiscplinary lens and apply knowledge and skills in real-world settings --> good because I will be working with many different people from many different areas of world and many different perspectives, great to be able to apply a multi-thinking approach when dealing with real clients and problems on a global scale 2. work in teams to find the best solutions to society's problems --> good for TTS improves ability to solve problems in steam setting and improves communication skills, understand a Lott of itt is working in team settings to creatively think and address a problem 3. provided me with great analytical skills where I have to learn how to present info and opinion in clear, professional, and concise way with little room for error --> good for analyst role when I will need to really tap into analytical skills let me example: had to create a campaign plan being sent to Durham policymaker where my team was assigned issue of how to address healthier eating habits in a cost efficient way for schools in durham county --> had trouble solving and coming up with idea at first so I suggested we go directly to source which was durham area and residents who have are actually familiar with this issue —> we went directly to source and first went to local elementary school and asked teacher why she thinks nutrition is such large issue in school and she said often times it is much cheaper to putt junk food or frozen food for lunch rather than actual nutritious food like vegetables and fruit, issue is cost of nutritious, fresh food —> we got to thinking and came up with idea to talk to durham residents who supply this sought after nutirotus produce, there so happened to be local durham farmer stand near campus so we spoke to durham country farmer market and spoke to him of different financial burdens of produce and why it is expensive —> found out one financial burden was the cost of storage where often times many of the produce wasn't been being sold because didnt fit grocery store aesthetic —> I remember there was this moment we all looked at each other and had same idea, why doesn't that produce that Is perfectly normal just be given to Durham schools, will be cost effective schools can pay little to no money for produce and will reduce waste and farmers could be incentivized tthrough beeing given financial compensation through new policy solution aimeed at this issue —> had to present policy solution to policy maker with relevant facts and research in a concise, eye-catching document that your policymaker can easily consult to get up-to-speed on the issue, this could even be highly adaptable in covid bring it back to why thesee 3 points are good for IB

do you invest/would you invest in market right now & if so what would you invest in right now? if I gave you 1 million dollars right now how would you spend it?

I would invest in stocks with a software edge and those who are using their platform to promote sustainability (which is a new trend consumers look for) (ex: trupanion, MATE, Kroger) An e-bike is functional, clean and a staunch adherent of social-distancing norms, even as the world returns to a new normal. It lets you move around without getting in an Uber or on a train, and is more compliant with ESG than your friendly neighborhood mutual fund. If like me, you've added a few pounds over lockdown, it can even serve as part of a daily exercise routine. The pandemic has accelerated a makeover of our cities, with the U.K. alone spending billion of pounds to develop thousands of miles of "cycle lanes." If you want to get on the electric bandwagon for a few thousand dollars, you could buy a MATE, a Danish e-bike with thick tires and Moncler branding. If you wanted to invest the $1 million and help reimagine mobility, invest in the common equity of an e-bike company. The investment thesis in companies behind e-bikes is straightforward. Buyers are willing to pay upfront and wait a few months for delivery. This creates a very favorable working capital dynamic. Production is typically outsourced to a major manufacturer, with direct shipping to many of the largest markets. A typical e-bike sells for $2,000 to $3,000 with gross margins in excess of 50%. Surplus cash flow is invested in marketing, which combines with organic influencers, and prominent celebrities like Kendall Jenner, Nigel Sylvester and Will Smith (in the case of MATE) promoting the bike.

tell me about yourself

I would love to tell you a little bit about myself and the experiences which have led me to be here talking with you today. First off, I'm originally from Long Island, New York, and I applied early to Duke where I loved the passionate spirit and energy of the students and school which I saw through basketball at a young age. Coming into Duke, I was pretty interested in finance and classical studies and was specifically interested in how different cultures and people interact and how these interactions are constantly shaping the world we live. And surprisingly enough I saw a lot of intersections among finance and classical studies in the Public Policy major where I've learned to think about the world holistically in an interdisciplinary framework. I'm also pursuing the finance minor and the innovation & entrepreneurship certificate. On campus, I joined Business Oriented Women where I'm a member of the entrepreneurship committee and have loved thinking creatively among a network of diverse females. Another meaningful opportunity was working with the Detroit BUILD Institute where I loved working so closely with a company and learning how to present and market this business creatively. Moving forward, I recently co-founded Borderless which is an online magazine for Duke International Relations Association, where I am the finance column editor and have loved developing a space for students to engage in current issues. And finally, I started interning with a hedge fund last week, and I'm really grateful and excited for this opportunity to learn more about finance. These experiences have challenged me to work harder, want to learn more about the world we live in, and think creatively which has helped me develop skills important for TTS & the SLP which I am really grateful to even be considered for and am excited to be talking with you today.

If you could use only one financial statement to evaluate the financial state of a company, which would you choose?

I would want to see the Cash Flow Statement so I could see the actual liquidity position of the business and how much cash it is using and generating. The Income Statement can be misleading due to any number of non-cash expenses that may not truly be affecting the overall business. And the Balance Sheet alone just shows a snapshot of the Company at one point in time, without showing how operations are actually performing. But whether a company has a healthy cash balance and generates significant cash flow indicates whether it is probably financially stable, and this is what the CF Statement would show.

who do you know at citi?

John Ladaney TTS, Kathryn deluca TTS, madhav Sharma TTS, nividha gurwara TTS, Alexa Mackintire TTS, Audrey wang TTS, jillian bass TTS Carolyn kee, kirkwood Roland John peeruzzi

when is a time you had to step up to be a leader/teammate?

LHS or BOW ethics of enreprnuhip

time you showed good leadership

LHS, ROTC, BOW ethical entrepreneurship event, tennis

How would a $10 increase in depreciation expense affect the three financial statements?

Let's start with the Income Statement. The $10 increase in depreciation will be an expense and will reduce net income by $10 times (1-the tax rate). Assuming a 40% tax rate, this will mean a reduction in net income of 60% or $6. So $6 flows to cash from operations, where net income will be reduced by $6 but depreciation will increase by $10, resulting in an increase of ending cash by $4. Cash then flows onto the Balance Sheet where it increases by $4, PP&E decreases by $10, and retained earnings decreases by $6, keeping everything in balance.

which gives highest value of 3 methods?

Of the four main valuation techniques (Market Value, Market Comps, Precedent Transactions and DCF) the highest valuation will normally come from the Precedent Transactions technique, because a company will pay a premium for the projected synergies coming from the merge, reflects what the acquirer had to pay to control the target in the acquisition. A DCF analysis will typically give you the next highest valuation simply because those building the DCF model tend to be somewhat optimistic in their assumptions and projections. Market Comps and Market Value will usually produce the lowest valuations.

best travel story?

Peru or Iceland or Croatia

walk me through precedents & pros/cons

Precedents transactions you essentially look at other transactions in the past which involves comparable companies of similiar backgrounds, size and other factors. A precedent transaction analysis is based on the idea that a company's worth can be determined by looking at the prices paid for similar companies situations like an M&A of the past. Precedent transaction analysis creates an estimate of what a share of stock would be worth in the case of an acquisition. You look at what the EV/EBITDA and EV/Sales multiples paid then calculate a valuation multiple based on the sale prices in those transactions, and apply the multiple to the comparable metric of the company being valued.

how do you raise capital & debt?

Raising debt is done by selling company bonds. Debt financing is done by an investor by lending money to the firm, for a certain period, at an interest agreed upon by both the parties. Debt is much less risky and cheaper for the investor because the firm is legally obligated to pay it. Also, If the company has taxable income, issuing debt provides the benefit of tax shields. You raise equity capital by selling a share of your business to an investor. Because the investor owns a portion of the business, he or she takes a share of the profits and you don't have to pay interest on a loan.

what is TTS & what does it do?

TTS provides cash management solutions and other foundational banking services to the world's largest corporations and governments (such as the US). So basically, how I was first introduced to TTS which really captivated my interest is what your bank does for you that's what TTS does for the biggest companies in the world. -1st: companies need a place to hold their cash so TTS does that for companies like Shell Oil and then out of for example my bank account I would need to pay bills so TTS does that for shell oil as they send money all over the world -2nd: you need from your bank or credit card for purchases or for travel and so TTS can give a commercial card to employees of shell for the same reason -3rd: or maybe let's say you need to go to bank for mortgage or personal loan or maybe shell needs to borrow from Citi for various international trade needs or during the course of a day as their money comes in and out there may be times where they send out more money and then they are waiting for money to come in (called daylight overdraft) another form of borrowing --> it's another way TTS in a credit sense supports Shell --> essentially thinking everything your bank does for you thats what TTS does for huge companies & institutions around the world (ex: for Tesla TTS is Tesla's exclusive global provider of Travel & Entertainment corporate credit cards or Uber uses TTS as their core payment engine to distribute earnings to drivers around the world), really helping these huge corporates manage their cash and how they would distribute it or collect it

how will recent election impact market and TTS?

The Fed's policy-setting committee on Thursday left overnight rates on hold, in keeping with its commitment to keep them there until it sees evidence of a tight labor market and inflation has obviously cleared its 2% target rate. It also said it would continue to purchase treasury's and mortgage-backed securities --> this will impact TTS because continued low interest rates could negatively impact deposits. For all that the central bank is already doing, the Fed remains deeply worried about how deep a hole the economy is still in, with millions of Americans still out of work and gross domestic product far below where it was before the pandemic struck. A stimulus package is seen as necessary for helping economy recover I think there will be prospects of a huge stimulus package being passed with a split congress. also with biden as president there could bis stricter quarantine policies and travel resetiicttons which would negatively impact TTS would need to be a relief package passed to increase consumer spending, raise GDP, and help inflation rate grow, then interest rates could rise and that would impact TTS

cashflow statement

The Statement of Cash Flows (also referred to as the cash flow statement) is one of the three key financial statements that report the cash generated and spent during a specific period of time. There are three parts to a cash flow statement. Cash from Operations (cash generated or lost through normal operations), sales, and changes in working capital. Cash from investing activities shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities (stock, bonds, cash), or the sale of securities or assets. Finally, cash from financing is cash generated or spent on financing the business; may include proceeds from debt or equity issuance (source of cash) or cost of debt or equity repurchase (use of cash). Lastly would state the cash at end of the year.

balance sheet

The balance sheet is a snapshot representing the state of a company's finances at a moment in time.A balance sheet reports a company's assets, liabilities and shareholders' equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation: Assets = Liabilities + Equity. This formula is intuitive: a company has to pay for all the things it owns (assets) by either borrowing money (taking on liabilities) or taking it from investors (issuing shareholders' equity). The balance sheet first displays the company's total assets, and how these assets are financed through either debt or equity. Then the balance sheet displays liabilities and shareholders equity. Shareholders' equity is the money attributable to shareholders and is also known as "net assets," since it is equivalent to the total assets of a company minus its liabilities, that is, the debt it owes to non-shareholders.

income statement

The income statement shows the performance of the business throughout each period, displaying sales revenue at the very top. The statement then deducts the cost of goods sold to find gross profit. Gross income is the amount you earn before taxes and other payroll deductions. From there, the gross profit is affected by other operating expenses and income, depending on the nature of the business, to reach net income at the bottom - "the bottom line" for the business. Net income is your total income after taxes, deductions, credits, and business operating expenses.

give me recent transaction/merger:

The merger of Canadian oil companies Cenovus Energy and Husky Energy will create presence in the Midwestern United States, but it comes at a time when weak demand has left that market oversupplied. Pandemic travel restrictions have hurt fuel demand and spurred companies to cut costs or merge. With infections surging again, consumption of gasoline and diesel could remain weak, hurting refinery profits. Cenovus's CVE.TO C$3.8 billion ($2.9 billion) purchase of Husky HSE.TO, announced on Sunday, is aimed at lowering operating costs and making it more resilient to low prices. In the Midwest, it will give Cenovus an additional 350,000 barrels per day (bpd) in total refining capacity. The region's refineries can process more than 4 million bpd, the second-most of five U.S. regions behind only the U.S. Gulf Coast, but analysts questioned the rationale for the deal. U.S. fuel demand is expected to fall to 18.2 million bpd in 2020 and rebound to just under 20 million bpd in 2021, but that's still short of 2019 levels. Cenovus shares closed down more than 8% on Monday. The company's combined 660,000 bpd of North American refining capacity is expected to more than match Cenovus' Alberta heavy oil production, but the supply of heavy crude still outweighs demand in the region. "Husky has struggled to make these (refineries) profitable and we believe in the near-term these fundamentals will remain challenged," Credit Suisse said in a note.

walk me through comps & pros/cons

The process is looking at comparable public companies in the same industry, geography, and of relatively similar sizes so we can have an approximate benchmark as to what their values or multiples should be trading at. -Some commonly used multiple is Enterprise Value/EBITDA, Price/Earnings, EV/Sales, and more. -Comparable Company A is trading at an EV/EBITDA multiple of 6.0x, and the company you are valuing has EBITDA of $100 million; your company's EV would be valued at $600 million based on this valuation technique.

How are 3 main financial statements connected?

The three main financial statements show separate views, and together they create a whole picture of a company's financial health. For example, the Income Statement closes with a net income figure that appears on the Cash Flow Statement as an addition to cash flow from operations. The Cash Flow Statement's beginning cash balance comes from the Balance Sheet for the prior period. The Cash Flow Statement's ending cash balance becomes the cash asset on the current period's Balance Sheet. In depth: (Ne income) Income stamtent shows the profgabiity of a company in a given period where the net income is added to the statemtn of retaine earnings on the balance shseet. net income is also listed at thee top of the starment of cash lfwo where if we want to find the change in net cash we eare goign to make some cash adjusmnets so before we do tht wee will havee eo put tne income at op of sament of ccash flows. —> income samtent is linked to oher 2 saments hrough net income figure (Cash att beginning of previous year) Cash at the end of he year which is found in statement of cash flows can be found at the top of the balance sheet in current assets section. This is linked to the satemtn of cash flows because when you calcualtethe change in cash over given fnancial period we need cash at the end of the preivous financial period to find cash a beginnign of this period. so previosu year's cash will be used to find cash amount in following year hwich is on top of balance sheet. (Change in cash focus) Statment of cash flows is also linekd to balance sheet and came throgh the cash ittem on statement of cash flow as we calculated the net change in cash over a given financial period and add or subtrac it from the cash at the end of he preivous period and we get the cash at the beginngn of the followng fnacial year. so we simply link the cash on previous year to statment of cash flows to the balance sheet to find he cash in following period and then simply link it back for the following year back ot blalance sheet.

what is going on with U.S. dollar and currency market?

U.S. dollar has declined about 2% YTD Gold markets have rallied significantly during the trading session on Thursday, reaching towards the $1950 level rather early. Senate leader Mitch McConnell has suggested that perhaps stimulus would be the first priority when Congress got back to work, but the reality is that the stimulus will be much smaller than originally anticipated. Because of this, you may actually make more money buying gold and other currencies than the US dollar. The U.S. currency is near its lowest level in 27 months and is down about 11% from its 2020 peak

why has the 10-year Treasury yield decreased?

Uncertainty around the U.S. presidential election spurred inflows into bonds amid worries that Wall Street will now face days, if not weeks of uncertainty about the eventual victor as results from battleground states trickle in. Meanwhile, hopes of a "blue sweep" that would see Democrats take control over the White House and Congress took a deep blow based on current voting, deflating the bond-market short positions which were positioned to capitalize on an increase in economic growth and a rise in inflation expectations if Biden's expansionary fiscal plan was implemented.

how do you risk/challenge/push yourself?

by learning more and going after things I am interested in even if I know it isnt the usual way to do things, all my life ive been very interested in many different things and ive found really cool intersections among them not typical but have tried to learn as much as I can (classical studies) even this semsester challenging myself (6 classes + 3 major club project + finance recruitment + new hedgefund internship)

what will you do if no summer internship?

continue work with hedgefund or apply to duke engage

what is your leadership/teamwork style?

dontt micoromange meets with them weekly create open communciagton and give everyone soemthtign to work on

cool class?

education seminar

time you received constructive criticism:

focus too much on details the I&E project

time you have helped someone in your network

freshman in entrpernsuhio BOW committee

speak more about DMC what have you learned from that?

helped tthe coop advertise their mission -teamwork -leadership -communication

where do you see yourself in 5 years-10 years?

hopefully att citi if nott business school

fed and interest rates/what role does fed play in economy/what should they be doing right now?

https://www.wsj.com/articles/federal-reserve-doesnt-have-to-just-wait-on-washington-11604607002?mod=markets_lead_pos4 The Fed's policy-setting committee on Thursday left overnight rates on hold, in keeping with its commitment to keep them there until it sees evidence of a tight labor market and inflation has obviously cleared its 2% target rate. It also said it would continue to purchase Treasurys and mortgage-backed securities. For all that the central bank is already doing, the Fed remains deeply worried about how deep a hole the economy is still in, with millions of Americans still out of work and gross domestic product far below where it was before the pandemic struck. Now, with the ultimate balance of power in Washington still uncertain, it remains unclear when stimulus might arrive. Senate Majority Leader Mitch McConnell on Wednesday said Congress should pass a relief package this year. But he still has to negotiate a package with House Speaker Nancy Pelosi and get support from his own caucus members in the Senate. The eventual package would likely be considerably smaller than what House Democrats have been pushing for, and it may not include another round of stimulus checks to households. Having already done so much, it is understandable why the Fed might view fiscal policy as the better tool to provide additional support to the economy at this point, but it isn't entirely out of options. One step it might take, Evercore ISI strategists point out, would be to make a commitment to keep buying bonds until certain criteria are met, as it has with its near-zero rate policy. It might also change the composition of its purchases to target longer-duration securities, putting further downward pressure on long-term interest rates. "Economic activity has continued to recover" but "the pace of improvement has moderated," Mr. Powell said at a news conference. Officials at their September meeting pledged to support the recovery by setting a higher bar to raise interest rates and by signaling it expected to hold rates near zero for at least three more years. This week, Fed officials continued discussions this week over how to provide more support to the economy should the recent rebound fizzle, Mr. Powell said. They could do this by adjusting their purchases of $120 billion a month in Treasury and mortgage-backed securities if needed. Fed officials cut interest rates to zero in March and expanded their asset portfolio to $7 trillion in June from $4 trillion before the pandemic hit. They launched an array of emergency lending programs in the spring. They unveiled a new policy framework in August and formalized new interest-rate guidance in September. Meantime, negotiations between Republicans and Democrats over how much more to spend on pandemic relief measures have stalled. Several Fed officials have said their forecasts for continued growth are premised on additional government spending. One reason Fed officials have been so outspoken about the need for additional government spending is because their stimulus tools are reaching the limits of what they can provide and because those tools are poorly suited to addressing the fallout from the pandemic, economists said. A separate question surrounds what the Fed will do with the scheduled expiration on Dec. 31 of the central bank's emergency loan programs. While the programs have resulted in fewer direct loans to businesses, cities, and states than many anticipated when they were first announced, the Fed is likely to prefer an extension because they are a source of comfort for financial markets and the pandemic hasn't subsided.

time you received feedback and what you found out about yourself from this?

in 6th grade was speaking did a lot of likes and ums in presntaitton about like a panda form hem have always been cosnisous about tthat and try to improve always trie to speak in class take public speaking got over tha nerbousneess or atttention to detail in I&E

what have you learned from financial markets/financial accounting/finance classes?

learned about basics of different valuation methods

what did you learn from classical studies/speak more on that:

learned o really appreciate ancient culture made me really intersted in world and learning things you different cuttlrues thought I twas really cool too connect ancient civilization and their world two modern world and see heir advancements, overall just made me very interested in different cultures and how their interactions are constantly shaping world we live in

how is TTS different than other transaction banks?

much steadier/stable business --> more predictable and why banks love it --> other major banks are in transaction services too but Citi is the single largest bank in transaction services in the world revenue for just TTS is 10 billion a year, costs are very low which make TTS compared to other parts of Citi very profitable (other parts of Citi may have more revenues but they may not have same amount of net income because costs are much higher than theirs, very efficient), within citi single most global business so have employees based in more countries and have clients based in more countries than any other part of the bank --> TTS serves over 80% of the world's Fortune 500 Companies TTS itself would be a Fortune 500 Company (over $9BN annual revenue) and would rank 74th in Net Income among all S&P 500 Companies TTS processes $4 Trillion of payments daily - equivalent to the World GDP every 20 days huge presence

interesting wsj journal arcticle/morning brew

nasa released news they have found water on moon which can help project artmis (Sustain human prscne on moon by 2028) -As Covid-19 Sweeps Europe, Slovakia Tries to Test Everyone: everyone above age of 10 and below 65 has to get tested or else they face fines and mandatory isolation

give me a stock pitch/a company you would invest in/give me example of a company that you think is undervalued/talk about company you admire:

one company I read in their stock report that I found interesting was Trupanion: A surprising fact: 25% of dogs and cats in UK are insured but only 2% in US! The CEO of Trupanion saw this discrepancy as a huge opportunity and found some initial success in Canada with his UK-type value proposition for pet owners. He relocated his company in Seattle to expand into the US. As dogs and cats are treated more and more like family members, Trupanion is betting that more and more people would prefer to eliminate the cash-flow problems caused by unexpected surgeries and other expensive interventions that are needed by their beloved pet from time to time. It uses machine learning to continually fine-tune its insurance premiums (precisely what to charge a 3- year old Bulldog in Manhattan so that the owner is pleased and Trupanion makes money on the average). They also install their own payment software at the animal hospital so that they can pay the vet within minutes of a pet's visit, something most vets really appreciate. They are rolling this out across all 28,000 veterinary hospitals across the country to win them over as their primary sales referral channel. We think there is a very good chance that Trupanion will be able to create a formidable moat around the vet channel and replicate the European model in the US (40% of dogs and cats in Sweden are insured). If they succeed, their current 0.22% market-share of insured pets has a massive potentially available market, one that is 50x to 100x their current size. We recently added TRUP to our portfolio. Incidentally, both Redfin and Trupanion CEOs hold up the same Seattle neighbors - Amazon, Costco, and Starbucks - as role models for long-term thinking, data-driven flywheels and customer-centricity. I would suggest you buy Kroger for the long-term as Kroger has been able to not only been able to outperform during COVID pandemic, but also has many future prospects in the software-space which would allow it further grow within the food consumer space. For background, Kroger is an American grocery store chain. Kroger has been able to survive and out-perform the market during COVID thanks to pandemic-related changes in shopper behavior. After seeing sales grow at a slow pace in recent years, management expects sales growth excluding fuel to accelerate to 13% for the full year, with adjusted EPS up between 45% and 50%. For the fiscal second quarter, total sales increased by 14% year over year excluding fuel, with digital sales surging 127%. Management has been investing to deliver more value and personalized rewards for customers, in addition to stocking more quality products. Kroger also has a 10.92x. These corporate franchises jumped 21% last quarter thanks in part to surging demand for plant-based and organic food products Other advantages for Kroger are its data collection efforts and private label brands, which are quite popular with customers. Kroger's loyalty program provides valuable data and insights about its customers' shopping history. This helps the company make decisions to improve the shopping experience, which management believes is crucial to maintaining its competitive advantage. On the other hand, Kroger is a bit behind its national peers when it comes to its multichannel selling platform. It's clear that Walmart's buy-online-pickup-at-store functionality is a big consumer draw. And Target has shown that shoppers are willing to pay up for ultra-fast fulfillment options. Kroger hasn't yet taken full advantage of these trends to sustainably boost margins and sales growth. But with a P/E of 10.2, investors don't have much to lose. Kroger is a well-managed business with a durable competitive moat. A its current valuation, this value stock could have big upside. If instead you think the retailer has a good sthot at growing its loyal shopper base into 2021, the stock could be a solid deal right now. Sure, Kroger hasn't demonstrated that its past market share struggles are behind it. But it has welcomed millions of new customers since the pandemic began. The retailer has used some of the spoils from that success to pay off debt, reinvest in the business, and accumulate an impressive cash reserve. All those assets should support the stock through a mix of strengthening earnings and increased direct cash returns to investors over the next few years.

time you had to face an ethical/difficult decision and how you dealt with it?

person was stealing from latin bake sale

time you dealt with difficult professor

pitched ideas of cooking class or dance class sin hind she shot me down I spoke tot her in breakout room she herard me out

time you dealt with personal/professional conflict & how you resolved it?

professional: LHS or tutor girl personal: simran

difficult concept/particularly complex piece of analysis you have done in class

pub pol class

time you were challenged in a team/experience working on a team (what did you like about it, what is difficult), or member on a team and you had to deliver and could not work alone

pub pol or LHS or ROTC or BUILD

significant project you worked on

pub pol, LHS, build

take accountability for something that others had failed to do so

recent events for BOW my group and I planned a startup workshop event when pandemic first started, we had planned this event reveling around breakout rooms and had this great idea but we failed to think about hwo to actually create breakout rooms --> I took accounbailtiy emailed everyone after saying sorry it had take up as a Time, as leader of the project it was my responsibility to make sure everything was perfect and overlooked a basic error have made sure now to go through and run every event before we plan it

greatest accomplishment

sister's eating disorder

greatest challenge

sister's eating disorder or BUILD or adapting to duke culture

time you failed

sister's eating disorder or I&E class

time you had to make quick high preessure/decision/worked in stressful environment

the ted talk in public speaking or this semester managing many essays or tennis team

a time you were very busy but still had to make time for something else that was important/multitasking:

this semester had many classes butt also many clubs used an app and made time blocks

what's a time you had to stay positive during a stressful situation?

this semester have much work but dealign with a lot of people over calls or in classes or in clubs or even asa roommate have tot remain positive and be able to help others as well or tennis example

time you dealt with difficult person

tutor girl

difficult job you had to do under pressure

use this semester as an example (big hindi podcast, I&E midterm, public policy paper, had to submit article for DIRA, and a huge research paper) all due within 2 days and it invogoratted me, busted out time management skills --> planned out week effectively into time blocks always gave myself breaks and was laser focused, I knew I had to get them done in a short period time and had to do them well Honestly, I'm someone who thrives under pressure. At the end of last semester, I had four papers due on the same day. It was a lot to get through. But pressure invigorates me—rather than getting overwhelmed and stressed out, my adrenaline kicks in, and I feel energized. During that hectic week, I busted out my time-management skills, broke each day into three-hour working blocks, and was laser-focused on those four papers. I knew I had to get them done, and done well, so nothing else mattered. I got them all in on time, and I got three A's and a B. When I'm under pressure, I take control, stay positive, and move forward. I'll do the same as your intern.

tell me about hedgefund internship/what have you done so far?

what ive done so far: --> I only started working a week ago so have not been able to do much yet but I know this will be a great learning opportunity. I get to learn a lot and work with smart people, and i think this is a great experience especially entering IB. -Main thing ive done is ive started reading their quarterly and yearly reports where i have learned what type of companies they like to invest in and how they have done well with covid what ive learned so far (what they specialize in andhow they have been able to do during covid) 1. I've learned they specialize in investing tech & software companies because they believe "software eats the world" and have noticed that companies with software edge tend to scale particularly well (like tracfone) 2. I've been able to learn how they have been doing during COVID. First, learned they have donee very well and outperformed market. 2nd quarter was best quarter ever where itt gained +60.2% for Q2 and is now up +45.5% net year-to-date. The S&P 500 is up 5.6% YTD as of this report release. They have been doing well because of tech stocks. They also outlined consumer changing preferences like tech stocks that are able to be environemntally sustainable. Also cool to hear why they would not invest in zoom. Really cool to learn about. (ex; Docusign eliminates paper, Visa & Mastercard replacing paper money with software transactions, Video-conferencing tools by Twilio and Google are reducing air-travel, a significant source of pollution 3. Reading though reports it's been great learning experience to see how how they approach a situational overview of a company. A lot of their situational overview is understanding the moat they have or software edge in their space and understanding the space as well. also understanding it's future prosepcts and why it would be able to beat competitors. -They tend to reposition their portfolio around "digital snowballs" - companies with a software-based edge, a loyal customer base ("sticky snow"), and a huge market in which they can reinvest and compound their profits ("a long hill to roll down"). -Since starting in 2008, they have had giains of 16.2% returns while S&P has had 11.6% returns, witthing the last 5 years, best quarter ever It gained +60.2% for Q2 (net of all fees and expenses), and is now up +45.5% net year-to-date. The market recovered from its panic plunge earlier and the S&P 500 gained +20.5% in Q2 - learned different steps to stock analysis is a situation overview, then performing technical skills then creating a price target / investment thesis/memo --> i am in stage of learning what a situation overview through reading quarterly reports, talking to him, and viewing a webinar (situation overview, company description, industry competition, fast/slow growth, restructuring, recent quarterly earnings)