“Quantum technology turns ordinary reality upside down”
– Michael Crichton
Welcome to the new look Miscellany. If you have modelling-related news, resources
or events that you’d like to share with 48,000 of the world’s best modellers, please
Tech // How quantum computing could revolutionise financial modelling
With all the recent focus on AI, you’d be forgiven for forgetting that quantum computing is also on the not-too-distant horizon. A shift to quantum computing could have a profound effect on financial modelling; models could potentially accommodate multiple possibilities at once while awaiting resolution upon observation or decision-making moment. This article gives a useful overview of the quantum mechanics principles and the potential implications for financial modelling. Read more.
Work // Three questions to get you unstuck
I can easily find myself in an endless loop of checking email, responding to message on slack, check social media and then going back to email. This article gives three useful questions that help you start addressing something, instead of avoiding it.
Whether it’s a work-related task or a personal decision that you’re avoiding, this post will help you clarify what you need to actually do, right now. Read more.
Book // How to get big things done
Sticking with the theme of getting things done, whether launching a small business or just finishing a work project on time, project failure is common place. Oxford professor Bent Flyvbjerg has spent his career studying why so many projects fail and what successful projects have in common.
In his book, How Big Things Get Done, he looks a lot at big projects looking at you HS2 but applies the lesson to any work project. The book identifies the errors that cause projects to fail, and the research-based principles that will make yours succeed:
- Understand your odds. If you don’t know them, you won’t win.
- Plan slow, act fast. Getting to the action quick feels right. But it’s wrong.
- Think right to left. Start with your goal, then identify the steps to get there.
- Find your Lego. Big is best built from small.
- Master the unknown unknowns. Most think they can’t, so they fail.
Greentech // The world’s biggest carbon capture facility
Western Texas is now home to the world’s largest carbon capture project. Stratos, owned by Occidental Petroleum is a $1bn facility that plans to sequester 500,000 tons of CO2 yearly by 2025. The company claims the project is a step towards “net zero oil”. Critics call it greenwashing. Read more.
If you have a modelling related job that you’d like to include in the Miscellany please
Financial Modelling Associate – Data Centre Investor & Developer, UK (Flexible)
Senior Financial Analyst – Disney, Singapore
ERP Project & Finance Analyst/Manager – GE Capital, USA
Financial Modeller – Infrastructure & Project Finance Consultancy, South Africa (Hybrid)
Financial Analyst | Capex/Compliance – Pfizer, Singapore
Resources for modellers
The Financial Modelling Handbook is now available in ebook format. You get all the same worked example files, access to exclusive online content and dedicated video tutorials to support your learning. You’ll just destroy fewer trees in the process. Buy the ebook here.
Modelling a timeline sounds like it should be simple. In Project Finance it isn’t. There are a number of different areas to be aware of. Knowing them in advance will help you set up your model timeline properly from the start. In this next chapter of the Project Finance Modelling Handbook I set out the advantages and disadvantages of each approach to modeling a PF model timeline. I’d love your input & feedback. Read here.
In this YouTube video presentation, Edward Bodmer covers innovative approaches to Project Finance Modelling. Explore the UDF (User-Defined Function) method for tackling complex debt structuring and sculpting, bridging the gap between structuring and risk analysis. This transformative approach simplifies financial analysis, enables modellers to focus on critical insights and presentations. Watch the video for a fresh perspective on project finance modeling. Watch here.
The first round of the Openbox AI Private Beta comes to a close
Beta windows are designed for one thing. To test a program to destruction! There have been many lessons learned in the first wave of the private Openbox AI window. These range from learning that modellers value some core functions over others, to wait you want to do WHAT with your model?!
Many bugs have risen and been stomped out which signals the end of round 1. As we look forward to round 2 of the private beta, Chief Technology Officer Iain Morrow has shared a free ChatGPT prompt to generate a Loan Life Cover Ratio (LLCR) for your model. Check our his Reddit post on the Openbox AI subreddit to find out how you can use his prompt! Read more.
We’re delighted to welcome the following two new team members to Gridlines:
Amy Puffett – Administrator | South Africa
Rohan Khurana – Senior Manager | Delhi
And finally …
This week’s Miscellany was curated and edited by