busterbluth

You are right on the word "describe" in the curriculum. Best case is in Cash vs. Synthetic CDO. You don't have to know how to calculate, only describe the differences and the tranches. For earning quality I would know how to calculate the accruals using the B/S and Cash Flow method and then put into ratio. Also know how to describe the number in terms of high/low or quality. Know how to describe differences in cash vs. accrual and which is better for forecast...

Hope this helps, not much quanitative analysis needed in this section. Your right, know the relationships and differences.