SE #5: Digging in to Investments with stock and bond picking …

The interns are surely getting the hang of it now. With only one week to go, they've been busy creating diversified portfolio, risk management ...

By Johanna, Anna & Gabriella

Hello dear readers,

Last week, we have yet again spent at one single desk only, namely Investments, also known as Asset & Wealth Management.

Even though it was “only” a single desk for the entire week, it turned out to be a mixture of the previous desks. At Investments, they are creating investment packages consisting of both equity and bonds as well as other products.

Hence, we have had great use of the knowledge, we have gained at the previous desks such as Equity and Credit Research and Sales, FX and more. For example, we have now learned even more about different kinds of corporate bonds. We have also learnt completely new things, such as how one should think when deciding upon an investment portfolio and what a structured product is.

Stock and corporate bond picking

The case of the week was to allocate a pension fund’s money to different asset classes. The assignment had various prerequisites regarding portfolio weights and required return. We did both stock and corporate bond picking to create a diversified portfolio, while still leaving some cash to be flexible and be able to invest when any optimistic opportunity appears.

To boost the portfolio returns and cash flows as well as manage the risk in a good way, we decided to add some covered calls and structured products to the mix as well.

We would like to compare the desk to the Swedish candy “Gott och blandat”, where you get a little taste of everything. A nice mixture.

Mixed feelings

This is our second to last week and we decided to finish it up with a sunny rooftop lunch together with the investments team.

From the right, Sanna Ohde (Investments), Anna Hedensio (intern) and Anneli Martola (Investments).

 

Next week will be our last one at Nordea, and we will spend it with the Macro team. We are really looking forward to it – but then again, also really sad to say good bye!

Have a nice weekend!

/Johanna, Anna & Gabriella

Don’t miss out on some of the previous blogs from our summer interns in Sweden, click, quiz and learn.

Or dig in to the lives of their fellow interns in Norway and Finland.

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