Finance term paper
Like most large banks, Citigroup has traditionally derived a significant portion of it revenues and net income from its trading activities. These activities include positions taken to facilitate customer orders, as well as purely proprietary trading activities, i.e., trading for its account with its own money.
Part1: Market Risk Discussion (4-5pages)
Citigroup includes a detailed discussion and analysis of Market Risk in its trading portfolios in its 10-K report.
10-K for 2018: https://www.citigroup.com/citi/investor/data/q1804c.pdf. Primary discussion found on pages 101-105
10-K for 2005: http://www.citigroup.com/citi/investor/data/k05c.pdf. Primary discussion found on pages 90-91
Discuss the changes in the level of disclosure between 2005 and 2018. As part of your discussion, please address the following points: (Section the three QUESTIONS up)
Has the framework Citigroup uses for measuring Price Risk changed? (Can use bullet points) In a detailed manner, descript each approach and compare them. Discuss how it has changed and how it is the same
What additional information about their risk management approach have they disclosed in 2018 over that of 2005? Provide at least three examples that you consider significant.
In what ways has the lengthier discussion of 2018 added to your understanding of Citigroups price risk management over that of 2005?
Please note: You do not need to discuss the actual results of either year; or how the numbers changed from 2005 to 2018. Focus only on the way price risk in the trading portfolios is presented by Citigroup.
