Bloomberg, Bonds, and High Finance

As a business student focusing on Eastern European trade I am oftentimes frustrated with the opportunities for study in this area available to me in California. So, when I was first offered the opportunity to intern at Blueberry Capital, a 200 million dollar capital management firm based in San Francisco, I was somewhat dubious about its benefit in terms of my long term goals. However soon after arriving there I found that I would be learning skills that would be beneficial to me regardless of what country I plan to work in.
Although my internship with the company only lasted a week, it was definitely a week well spent. Because Blueberry Capital is a small firm, which focuses on high-level municipal bond investments for private wealth management funds, it usually does not take on interns at all, so I was fortunate to benefit from knowledge and experience that is accessible to few of my peers.
On my first day, I arrived at the office, in the middle of San Francisco’s financial district, and stayed only long enough for introductions. The office makes extensive use of the Bloomberg terminal to make investment decisions, so I was immediately sent to Bloomberg’s west coast headquarters for terminal training. The office’s dedicated representative, Nina Bari, was there to greet me on arrival. Having been told of my background in Journalism, she was gracious enough to give me a quick tour of Bloomberg’s television studio and facilities, which were small, but new and utilitarian. Then came a surprise meeting with one of Bloomberg’s Executive Editors and Technology columnist Rich Jaroslovsky, a long time family friend. Then we got down to business. The training itself consisted of an hour-long whirlwind of keyboard commands and financial codes. While attempting to master the intricacies of the system I came to realize that the terminal is really the Avid of the financial world – complicated to use, but also an incredibly powerful tool. I believe this knowledge will be useful in the future.
Back at Blueberry Capital’s office in the afternoon, I was given a crash course in the parallels between the business and legal worlds. My duties included analyzing extensive Bond prospectuses and credit ratings. I was also asked on several occasions to use Bloomberg to research the financial situations of the various underwriters and LOC issuers. Owing to my background, this was not very new to me. As a business reporter if often reported on the pros and cons of various market sectors and investments. However, at Blueberry I also was asked to use the information to make judgment calls regarding the actual quality of an investment. While at first I found this challenging, I began to gain an understanding of how to distinguish between investment qualities during the internship. I also learned how concepts taught in the classroom, can be used in new and unexpected ways. For example, I learned how mandatory put and call provisions can be used as the mechanics by which variable rate municipal bond can be reset to par value each week. In short, this was a great experience. I will never forget the exhilarating feeling that results from hitting the “accept” button on a multi-million dollar bond purchase. The skills I will take away will serve me well as I continue to work toward my ambitions of an Eastern European business career.

Seriously, San Francisco?

I am a business student who grew up in suburban Los Angeles. The countries in which I spend a lot of time are usually a lot more concerned with economic growth than with environmental protection. When someone mentions the word “green” the first thoughts that pop into my head more often than not have something to do with the color of American money. And yes, I am one of those people who do not believe that global warming is caused by humans. Although I have been to some more environmentally-minded countries, such as Germany and Belgium, I was truly shocked into disbelief at the amount of environmental B.S. that is going on in San Francisco.
I have seen in a lot of different taxis around the world, but nowhere else have I seen even one Prius taxicab. In San Francisco the things are everywhere. This isn’t just because one or two independent operators are environmentally minded, in fact a sizable portion of cabs in the city are hybrids. When I asked about it, I was told that it is actually a law in San Francisco that in order for a cab company to get licensed a certain percentage of the fleet must be hybrids. Even though my initial reaction was, “Are you kidding me?” I refrained from pointing out that it probably will not be too good for the environment when it comes time to dispose of all the batteries.
The crazy ordinances don’t stop there. All credit card equipped parking meters must be solar powered, and it is illegal to sell a house in San Francisco if it does not have a low flow toilet. Electric buses which are perfectly normal in most major cities are touted as ‘zero emissions vehicles’ in San Francisco. When I pointed out that the electricity for the bus probably comes from a power plant belching black smoke into the air, my comment was succinctly ignored.
The other shocking thing is San Franciscans’ seeming obsession with compost. Previously I’d though that this was something that only a very few private individuals do. However, in the City by the Bay it’s everywhere. Even in coffee shops, garbage disposal facilities are divided not only into trash and recycling, but there is also a separate bin for compostable material. If it were not for my uncle I would still be standing there trying to figure out what goes in which bin.
One final note, the most outlandish thing I saw during my time in San Francisco was also disturbingly cool at the same time. At a frozen yogurt shop, my uncle pointed out that the disposable utensils were made from corn starch. Hearing this I started trying to bite into one of them assuming that edible spoons were a gimmick of the restaurant. It turned out that the spoons were not fit for human consumption, but were biodegradable, and are just as good as the genuine plastic articles.

Two Words: Good Food

The food in San Francisco is amazing. While I was there I was treated to a plethora of culinary options, from Thai to Armenian cuisine. Here are some of the highlights:
On the night I arrived we went to Little Tokyo, for a dinner of Japanese noodles. The restaurant makes its own noodles and broth fresh in-house. The Udon with seaweed, or Wakame, was a good way to start eating my way through the city.
The following morning I got breakfast from the aptly named “Le Boulangerie.” The bread was fresh from the oven. I especially enjoyed the breakfast bread, which was baked with cranberry, apricot and almonds.
Later that day, we stopped at North Beach pizzeria, which is apparently one of the oldest in the city. From our table I could see the dough being kneaded in the kitchen. While ordering a pizza that satisfied everyone’s topping preferences was a bit of a challenge, the result was quite satisfying. I have ordered mushroom, garlic and breaded eggplant pizza in many places around the world, and this was one of the better results.
The next day we ate Thai food for dinner. The small restaurant we went to featured a chef from one of Thailand’s more remote provinces, who is known to try unconventional combinations of ingredients. Indeed, this made the usually pedestrian dish of Pad Thai, new and interesting. The red duck curry was also quite good.
One of the best restaurants was called “La Mediterranean”. The owner of this restaurant is an Armenian who grew up in Lebanon. The menu combines these two cuisines with a decidedly French influence. The olive quiche, served with lentil soup, hummus and fresh pita bread eloquently demonstrated the synergy that can be created from the combination of culinary culture.

Art in The City by The Bay

While in San Francisco I stayed with my uncle and his girlfriend. They could not have been more welcoming, and they made it a point to show me around the city. My first full day in the city was a Sunday. After breakfast, I was taken to the Legion of Honor Museum. I enjoyed looking at the works of art from various European eras. Of particular interest was one of the original manuscripts of the Magna Carta which was on loan to the museum. My uncle has a connection in San Francisco’s real estate business, so afterwards I was taken to the island of Belvedere, where some of the city’s wealthiest homes are situated. I was shown an excellent model of 1950’s architecture, with amazing views of downtown San Francisco, the Bay, and the Golden Gate Bridge. Unfortunately, it was a bit out of my price range at a mere $4.5 million.
That evening we went to Coit Tower to look at the murals in its rotunda. This was especially interesting to me because of the style of the art work. Even through the murals were sponsored during the Great Depression by the US government, many of the painters thought that the capitalist system had let them down. For this reason, roughly half of the rotunda is painted in the socialist realist style. While I don’t agree with the philosophy, this style of artwork remains one of my favorite genres simply for its aesthetic value. Because, the murals look like something you’d expect to find in countries of the former Warsaw Pact, I have to admit it was a bit disconcerting to find it in America.

The Opera of Growth in Peru

As an opera fan traveling through Peru, I was constantly reminded of the premise of John Adams’ “Nixon in China,” which portrays the perils of a closed society attempting to take its place on the world stage. Peru is an economy that is opening to the world after years of being governed by policies of isolation and mismanagement. It is an environment of contrast and volatile change at a record pace, where innovation and ignorance walk hand in hand. It is a world of cultural, economic and political one-upmanship, where promises of greater power push aside the philosophy that stimulated its growth.
Our business visits began with a trip down the coast. It was at this point that I got my first look at the Peruvian coastline. The Pacific Ocean butts up against a practically barren desert. In contrast to the picturesque Andean villages, the settlements along the coast looked forlorn, like the land they inhabit. However, this bareness hides a wealth of natural resources. Our first stop was Peru LNG, a natural gas liquefaction plant. While we were not allowed to go into the plant itself, it was interesting to hear about how the company put into place its complicated supply chain, and is continuing to grow.
From there we continued to the TACA fishmeal plant. The Peruvian fisheries are some of the richest in the world. I enjoyed hearing about the overfishing in the 1970’s that almost destroyed this resource, and how current sustainability policy has successfully prevented further destruction. This was also the only firm I visited where the company’s sustainability program was not counterproductive to the goals of the firm.
One of the advantages of the Peruvian coastal desert is that, while rainless, the climate is humid and rather mild. Using runoff water from the Andes, parts of it have been turned into very fertile farmland. In order to see this in action, we visited “La Hoja Redonda” orchards. While this company exports citrus and avocadoes to the US, the amount of regulation imposed at the urging of American agricultural interests makes the export efforts hardly worth it. In fact, at certain times of the year, the company chooses not to export to the US, due to pointless regulations which make it almost impossible for their produce to be deemed acceptable by the U.S. government when it is in fact perfectly fine. These barriers not only inhibit free trade, but also essentially amount to price-fixing of the local produce market, and should be removed.
As one of several Spanish-speakers on the tour, I had been doing some informal translation during the trip. When we visited the Talma airport ground services headquarters, the native speakers who were supposed to be translating were otherwise occupied. The warehouse manager came over and began speaking Spanish to my small group. Noticing the blank stares from my colleagues, I immediately stepped in and started translating. He explained company’s drug screening procedures, including a demonstration with a drug-sniffing dog. The entire presentation lasted only about ten minutes, but I enjoyed translating so much that it was one of my favorite moments on the entire trip.
Most of the companies we visited at least paid lip service to protecting the environment, even if they did not have much of a program. Environmental issues seemed to be included in their presentations to meet the expectations of the visitors. Owing to my upbringing and experience in the journalistic disciplines, I had been asking probing questions the entire trip. However, at the Backus brewing company, the presentation essentially consisted of nothing but the sustainability director extolling the company’s attempts to become carbon neutral, and its responsible drinking campaign. While most of my peers were asking about their methodology, I raised my hand and directly inquired as to the impact of these efforts on the company’s bottom line. After a good 10 seconds of stunned silence, the sustainability director grudgingly admitted that her efforts had negatively affected the company’s profits.

As in the opera “Nixon in China,” the subject of what all of this means to Peru is a complicated one. Even the Peruvian executives we met seemed to shy away from the philosophical implications of Peru’s growth. Instead they seemed much more interested in portraying a semblance of confidence, security, and belief in their own rhetoric. From the politicians to the executives, to even some of those in our own group, the appearance of conviction seemed more important than reality. And, like the character of Lady Mao, the press release image they project often conceals the ominous truth lurking just below the surface. This is an election year in Peru. The outcome will determine whether Peru will return to a philosophy of protectionism, or continue to grow precariously. Beneath its veil of confidence, Peru is a country perched on a precipice of uncertainty. I leave you with the final lines of ‘Nixon in China:’ “Of all of what we’ve done, how much of it was good?” Peru is a country in search of an answer.

On the Peruvian Andes

Over my university’s winter break I traveled to Peru in order to study the economy there. While I was only there for 2 weeks, I feel as if I have been to much more than one country. The group leader, Professor Carl Voigt, asked us to sum up the experience in just a few words. The first thing that came to my mind is that Peru is a land of jarring contrasts. Geographically, the country is divided into three completely different regions: the Coast, the Andes, and rainforest, which borders on the Brazilian Amazon. While the country has only 28 million inhabitants, each of these regions not only has its own climate, but is populated by a complete different culture. Economically, the country displays a sharp divide between wealth and poverty. In Peruvian cities the division between the two is striking. In Cusco, or even the capital city of Lima, you can pass from a wealthy to an impoverished district simply by crossing the street.
My first 24 hours on the ground were a crash course in the myriad of differences. After a whirlwind tour of Lima’s historical center and Pizarro’s tomb, we flew to the two-mile-high Andean City of Cusco. From there, a bus and train ride took us to the “ceja de la selva”, or eyebrow of the jungle, where the mountains give way to the wilderness beyond.
Peru is an 80% catholic country. We arrived in the span between Christmas and Epiphany, and before New Year’s there were not many business open for us to visit. So, our group began immersing itself in the cultural heritage of the country. After one night, in the hill town of Aguas Calientes, we set out for a day in Machu Picchu. I remain impressed by the striking location and character of the ruins. This was also New Year’s Eve, so that afternoon our group returned to Cusco, one of the best places in the world to ring in the New Year. The atmosphere was very different than anything you could find in the US. The Main Square was crowded with parades, bands and revelers shooting off fireworks, in any and all directions. It was a refreshing change.
We spent another day in Cusco, seeing the major sights of the city, including the two main churches, would have been impressive even in Europe. I spent some time walking around and getting to know the city. The next morning we returned to Lima, to begin business visits the next day.

Work and Play in Poland

It has been a while since I have had time to update this blog. After completing my internship in Romania, I traveled to Krakow for an intensive Polish language program at Jagiellonian University. Shortly after arrival there, our entire group was ushered into one of the university’s oldest lecture halls for the official inauguration of the program. As part of the opening festivities the U.S. Consul General addressed me and my peers.
“Let me tell you the Polish language is tough,” the consul warned us. He added that our curriculum was so intense, that between study, sleep, and fun, there were only enough hours in the day for us to “pick any two.” At the time I thought he was joking, but as I soon found out his words rang true.
My first wake up call came during the placement test, which was right after the inauguration. I already spoke a good amount of Polish and expected that I would be placed in one of the intermediate levels. So I was disappointed when the results came out, to find that I had been placed one of the beginning levels, along with many other non- native speakers, many of whom had taken four semesters of university level Polish in the US. Despite this, the subject matter on the first day of class confirmed suspicions that I had been placed too low. I began to attempt to move to a higher level. While at first my efforts met with little success, after two days I was finally granted grudging permission to move to the intermediate level.
My new level proved to be very challenging. In addition to this I decided to further test my abilities by enrolling in a college level course on Polish history, taught in Polish, which I finished with an A.
On the weekends I managed to have a life outside the course. I greatly enjoyed hiking in the Tatarskie mountains, and visiting my roommates’ families in the small town of Nowa Sarzynna. My weekend trip to Ukraine proved to me that while Poland’s neighbor is beautiful, it can also be somewhat dangerous. I narrowly avoided being ripped off by the local gangsters. The highlight of my trip was finally getting to meet my own Polish family in person. While the courses proved instructive, I have to say that I learned the most, simply visiting with my Polish friends and family.
The final day of the program was also my birthday. My friends and I prepared for a final night on the town before going our separate ways. That evening the management called one final meeting of the students in the Stolowka, the dining hall in the building where we stayed. It quickly became apparent the purpose of this meeting was to give out awards. I had only been grudgingly admitted into my level, and was not expecting much from this ceremony. So, I was shocked when I heard my name. The president of the program recognized me for the highest marks and outstanding achievement on the intermediate level.
I came to Poland already knowing that I had an affinity for its people and culture. My experiences this summer have strengthened my determination to return next summer to continue my studies in Krakow. I hope to combine this with a business internship in May and June. I am currently on an accelerated track to complete my business degree by June 2012 and then begin the adventure of graduate school or a job in Eastern Europe.