Internship #6 – More difficult than we thought

Week six as summer interns at Nordea Markets in Oslo. This week, all the Nordic interns work on an exciting case competition.

By Anna Emilie Endreson and Andreas Gudmundset

Top left: Torgeir Rimstad, Simen Knudzen and Henrik Hvoslef-Eide together with summer interns; Mina, Andreas, Henrik and Niels Joachim. Bottom left: Summer interns; Magne and Anna with Chief Analyst, Thina Saltvedt

Another exciting week has passed by

Another week has passed by, full of exciting presentations, meetings and projects – and last but not least floor ball, where the interns once again won.

Thursday, we attended a summer academy presentation about the FX-market where we learned about the most common FX-products as well as how this FICC business has developed from the 1970’s until today. We also attended a presentation held by Nordea’s Chief Economist Kjetil Olsen, who taught us about the relations between interest rates, GDP and unemployment rates.

Digging into green energy

In between summer academy presentations, floor ball and case competition (which we’ll come back to), we (Anna and Andreas – see photo below) have for the last two weeks been working on a macro project together with Nordea’s chief oil analyst Thina Saltvedt (pictured above), focusing on the global oil industry as well as the development of green energy on a worldwide basis. We were really happy with the assignment as energy is such an important factor in the modern world, and it is something we wanted to have a better insight into.

The project consisted of several parts, starting with a search for both historical data and forecasts of future development. It was important to be critical of data sources as they could have different definitions of things that sounded similar. Among other things, we collected data on electric vehicles (EV) worldwide to see how the development has been over the last ten years.

We also found data on the relationship between economic growth and the use of energy, which are strongly correlated. It was fascinating to see which energy sources were used in different parts of the world and how this has evolved. In the EU for example, the energy consumption consisted mainly of oil, natural gas and coal with a quite even distribution whilst some of the Asian countries were far more coal-dependent. We also saw that the consumption of solar and wind energy has increased.

How to juggle several projects and crack a case

Another highlight of the week was a case competition which we all were quite excited about – and not just us in Norway. To “crack” the case, we worked alongside fellow summer interns in Sweden, Denmark and Finland. And it turned out to be pretty exciting and challenging.

We were divided into five groups, each group with interns from different countries. This proved to be a bit of a challenge as solving a case over Skype was more difficult than we originally thought. Having to cooperate with people in different countries really made us understand the importance of making a thorough plan for how to tackle the task and divide the labor. Another challenge was to coordinate with the entire group as most of the interns had other projects going on at the same time.

In the actual case, we had to create a presentation of potential improvements of a specific company’s hedging of interest rate risk and currency risk. We looked into how they manage these risks today, what their hedging policy is, where their main risks are as well as suggesting improvements. The winners of the competition will be announced this week, and we are all very excited to see who takes the price – as the winning group will be presenting their results for the FICC Management in Oslo. A bit scary – but definitely also a price that we all want to win.

And the winner is …

We can hardly wait to hear who the winning team is! And we’ll let you in our next blog, where we’ll also tell you about what we’ve been up to this week. At this point in time we are working on our own, awaiting to get to know the theme of our new project. As always, we expect a challenging and exciting week!

/ Anna and Andreas

Don’t miss out on the previous blog posts from our summer interns in Oslo:

Week 1: “We’ve met some challenges …” – by Anna and Niels Joachim

Week 2: “Some of us left with bruises …” – by Mina and Magne

Week 3: “We hit back – the honor was restored” – by Henrik and Andreas

Week 4: “One hell of a week” – by Niels Joachim and Henrik

Week 5: “Undefeated and as ever excited” – by Mina and Magne

Get to know a little bit more about our interns; Mina, Magne and Henrik and Anna, Niels Joachim and Andreas.