The Goldman Sachs Group, INC: Data Usage, Database Management, & Data Communication The Goldman Sachs Group operates as, “an investment management, investment banking, and securities company out of New York, New York”1. The company has four major business segments. These segments include: investment banking, institutional client services, investing and lending, and investment management. The very essence of their business is all about data: collection, mining, investigating, and distributing. Meaning, the company relies exclusively on financial data and databases to make their profit. Taking a closer look at the company, one of the more fascinating uses of data is in the bond market sector of their investment management business segment. Goldman
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The two types of databases that financial advisors will try to create in regards to bonds are classification databases and valuation databases. To gather the data needed to create these databases financial advisors will monitor the following external databases: NYSE, Dow Jones, North American Securities Administration Association, Bureau of Public Debt Alerts, Commodity Futures Trading Commission, Securitas and Exchange Commission, Analysts, and market data on sources such as yahoo …show more content…
The specifics gathered in the form of bond attributes and foreign keys further determines the bonds validity, worth, interest rates given, and required rate of return by investors. Attributable data, in this case as well as any others, is any characteristic that does not require or result in a separate information table. The attributes of bond include: coupon interest rate, call provisions, and type of bond. The coupon interest rate of a bond, “indicates the percentage of the par value of the bond that will be paid out annually in the form of interest”3. Considering that the par value of a bond is (almost) always $1000 this calculation is simple. A bond will either have a fixed rate coupon rate or it will be a zero coupon bond. Call provisions allow the issuer to redeem the bond before it matures. If no call provisions are in place, an issuer cannot make a borrower accept early payment. Call provisions are place to protect the issuer in case there is decline in interest rates. There are many different types of bonds. The four most popular types of bonds are: debentures, mortgage bonds, Eurobonds, and convertible bonds. Debenture is a term that “applies to any unsecured long term debt”3. Meaning that, the earning ability of the bond issuer is of great concern to the bondholder. A mortgage bond is “secured by a lien on property”3. The value of the property being used as collateral is
The two types of databases that financial advisors will try to create in regards to bonds are classification databases and valuation databases. To gather the data needed to create these databases financial advisors will monitor the following external databases: NYSE, Dow Jones, North American Securities Administration Association, Bureau of Public Debt Alerts, Commodity Futures Trading Commission, Securitas and Exchange Commission, Analysts, and market data on sources such as yahoo …show more content…
The specifics gathered in the form of bond attributes and foreign keys further determines the bonds validity, worth, interest rates given, and required rate of return by investors. Attributable data, in this case as well as any others, is any characteristic that does not require or result in a separate information table. The attributes of bond include: coupon interest rate, call provisions, and type of bond. The coupon interest rate of a bond, “indicates the percentage of the par value of the bond that will be paid out annually in the form of interest”3. Considering that the par value of a bond is (almost) always $1000 this calculation is simple. A bond will either have a fixed rate coupon rate or it will be a zero coupon bond. Call provisions allow the issuer to redeem the bond before it matures. If no call provisions are in place, an issuer cannot make a borrower accept early payment. Call provisions are place to protect the issuer in case there is decline in interest rates. There are many different types of bonds. The four most popular types of bonds are: debentures, mortgage bonds, Eurobonds, and convertible bonds. Debenture is a term that “applies to any unsecured long term debt”3. Meaning that, the earning ability of the bond issuer is of great concern to the bondholder. A mortgage bond is “secured by a lien on property”3. The value of the property being used as collateral is