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Search results “Default rate on bonds”

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If we are given two spot rate term structures (spot rates for Treasuries and for risky corporate bond), the question is, what is the 2-year cumulative probability of default (PD)? We take THREE STEPS: 1. Compute 1-year forward rates; 2. Compute marginal probability of defaults; 3. Compute the 2-year cumulative probability of default
Views: 17286 Bionic Turtle

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Bond default risk; bond credit ratings; determinants of credit ratings; yield spreads of corporate and municipal bonds over Treasuries
Views: 1558 Elinda Kiss

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In this session, we examine the risks of investing in bonds. Even if the payments on the bond are guaranteed (there is no default risk), you face interest rate risk after you buy the bond and we look at simple measures of interest rate risk exposure. We also look at the additional risk that comes from default, how best to measure that default risk and how much to demand as compensation for exposure to that risk.
Views: 12157 Aswath Damodaran

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Once junk bond fund crash, it can be very serious . The yield may not be worth the high risk.

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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn Interest Rate Risk: 1. The Longer The Maturity, The More YTM Affects Bond Price 2. The Lower The Coupon Rate, The More YTM Affects Bond Price
Views: 11811 ExcelIsFun

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This video will show you how to calculate the bond price and yield to maturity in a financial calculator. If you need to find the Present value by hand please watch this video :) http://youtu.be/5uAICRPUzsM There are more videos for EXCEL as well Like and subscribe :) Please visit us at http://www.i-hate-math.com Thanks for learning
Views: 278141 I Hate Math Group, Inc

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Views: 14868 Zions TV

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Study note: Hazard rate (default intensity) is a conditional PD but it connotes an instantaneous rate of failure. As such, it can be used with elegance in the exponential distribution to compute the cumulative probability of default (cumulative PD). The conditional PD is the probability of default conditional on survival so far; e.g., 3-year conditional PD = probability of default in year 3 assuming the bond survives the prior two years.
Views: 26675 Bionic Turtle

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M&G’s Mario Eisenegger explains the basic dynamics of credit spread duration, a measure of how sensitive a bond’s price is to movements in credit spreads The video highlights the two drivers of credit spread duration; the coupon and maturity. Using some examples, we look at how coupon size and maturity periods impact a bond’s sensitivity to changes in spreads Finally, credit risk and credit spread duration are often mistaken for the same thing. Mario clarifies the difference between them
Views: 2573 Bond Vigilantes

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This video examines various risks which are associated with investing in bonds. The areas of risk covered include: - Default Risk: the risk that the issuer will not be able to pay back the loan - Inflationary Risk: the risk that spending power will be eroded (-ve rate of return). - Callability Risk: the risk that the bond will be bought back for less than you paid for it. - Liquidity risk: the risk that you won't be able to sell when you want to. - Political Risk: actions taken by governments which affect the bond market - Interest rate risk: the risk that interest rates will rise thus lowering bond prices.

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Consider the following spot interest rates for maturities of one, two, three, and four years. Year | Rate 1 | 4% 2 | 5% 3 | 6% 4 | 7% What is the price of a four year, 4 percent coupon bond with a face value of \$100? Assume the bond pays an annual coupon. What are our expectations of the yield for a one year bond that starts in one, two, and three years, i.e., what are the forward rates? Suppose the inflation expectations are a constant 2 percent, what are the expected real interest rates for each one year period in the future? Suppose that immediately after purchasing the bond that market expectations of the inflation rate decrease to a constant one percent. What are our new nominal forward rates? Assume expectations of real interest rates have not changed. In one year, what do we expect the new term structure of interest rates to be? In one year, what do we expect the price of the bond to be based on the new term structure of interest rates? What do we expect the holding period return to be if you sell it immediately after receiving the first year’s coupon? Note: There is a typo in calculating the holding period return. The correct formula is (92.22 - 90.17 + 4)/90.17 = 6.7% Note: A pdf of the solution is available from here: https://goo.gl/MeMDkv

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As default correlation increases, the probability of default (PD) for junior tranche (1st to default basket CDS) decreases but the PD for a senior tranche increases.
Views: 8901 Bionic Turtle

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CLICK HERE FOR PART 2 OF THIS VIDEO: https://youtu.be/cYbivUs4Mn4 📘LOOK THROUGH MY BOOKS! 📘 http://books.themoneygps.com SUPPORT MY WORK: https://www.patreon.com/themoneygps PAYPAL: https://goo.gl/L6VQg9 OTHER: http://themoneygps.com/donate ————————————————————————————————— The BEST Storable Food, Water Filters & More: https://goo.gl/fb8Xy4 ————————————————————————————————— STEEMIT: https://steemit.com/@themoneygps DTUBE: https://d.tube/c/themoneygps T-SHIRTS: http://themoneygps.com/store ————————————————————————————————— ℹ️Sources Used in This Video ℹ️ https://goo.gl/UpprQe
Views: 57689 The Money GPS

13:33
Khan Academy on Bond Prices and Interest Rates
Views: 149457 Jonathan Horn

06:24
Most borrowers borrow through banks. But established and reputable institutions can also borrow from a different intermediary: the bond market. That’s the topic of this video. We’ll discuss what a bond is, what it does, how it’s rated, and what those ratings ultimately mean. First, though: what’s a bond? It’s essentially an IOU. A bond details who owes what, and when debt repayment will be made. Unlike stocks, bond ownership doesn’t mean owning part of a firm. It simply means being owed a specific sum, which will be paid back at a promised time. Some bonds also entitle holders to “coupon payments,” which are regular installments paid out on a schedule. Now—what does a bond do? Like stocks, bonds help raise money. Companies and governments issue bonds to finance new ventures. The ROI from these ventures, can then be used to repay bond holders. Speaking of repayments, borrowing through the bond market may mean better terms than borrowing from banks. This is especially the case for highly-rated bonds. But what determines a bond’s rating? Bond ratings are issued by agencies like Standard and Poor’s. A rating reflects the default risk of the institution issuing a bond. “Default risk” is the risk that a bond issuer may be unable to make payments when they come due. The higher the issuer’s default risk, the lower the rating of a bond. A lower rating means lenders will demand higher interest before providing money. For lenders, higher ratings mean a safer investment. And for borrowers (the bond issuers), a higher rating means paying a lower interest on debt. That said, there are other nuances to the bond market—things like the “crowding out” effect, as well as the effect of collateral on a bond’s interest rate. These are things we’ll leave you to discover in the video. Happy learning! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/29Q2f7d Next video: http://bit.ly/29WhXgC Office Hours video: http://bit.ly/29R04Ba Help us caption & translate this video! http://amara.org/v/QZ06/

06:28
What would happen in the world and in United States if USA defaulted on it's debt? SUBSCRIBE TO US -► http://bit.ly/TheInfographicsShow -------------------------------------------------------------------------- WEBSITE (SUGGEST A TOPIC): http://theinfographicsshow.com SUPPORT US: Patreon.......► https://www.patreon.com/theinfographicsshow CHAT WITH ME: DISCORD.....►https://discord.gg/theinfographicsshow SOCIAL: Twitter........► https://twitter.com/TheInfoShow Subreddit...► http://reddit.com/r/TheInfographicsShow -------------------------------------------------------------------------- Sources for this episode: https://pastebin.com/gPeUjWaj Some Images used under license from Shutterstock.com
Views: 1669670 The Infographics Show

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Views: 24555 Bionic Turtle

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Presentation of this research during The Rothschild Caesarea Center 11th Annual Conference, IDC. Abstract - We develop a structural credit risk model with time-varying macroeconomic risks and endogenous liquidity frictions. The model not only matches the average default probabilities, recovery rates, and average credit spreads for corporate bonds across di erent credit ratings, but also can account for bond liquidity measures including Bond-CDS spreads and bid-ask spreads across ratings. We propose a novel structural decomposition scheme of the credit spreads to capture the interaction between liquidity and default risk in corporate bond pricing. As an application, we use this framework to quantitatively evaluate the e ects of liquidity-provision policies for the corporate bond market.
Views: 534 IDC Herzliya

05:47
What is a risk premium? An introduction into what a bond is. Video by Chase DeHan, Assistant Professor of Finance at the University of South Carolina Upstate
Views: 14471 Harpett

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This video illustrates the valuation of an interest rate swap as two bonds. For more information on interest rate swap (IRS), visit Bionic Turtle at https://www.bionicturtle.com.
Views: 23292 Bionic Turtle

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This video explain how default risk, liquidity, and tax differences affect the interest rates of bonds. Thanks for watching!

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What are fixed income securities (bonds)? Here Tim Bennett introduces how they work and breaks down the key jargon for novice investors. Subscribe here http://ow.ly/rK0pr to receive Tim's new videos.
Views: 39958 Killik & Co

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Jan. 25 (Bloomberg) -- Pippa Malmgren, president of Canonbury Group, talks about the outlook for the U.S. municipal defaults and corporate foreign-exchange losses. She speaks with Andrea Catherwood on Bloomberg Television's "The Pulse."
Views: 881 Bloomberg

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Views: 6902 Edspira

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Excel Forum: https://www.teachexcel.com/talk/microsoft-office?src=yt Excel Tutorials: https://www.teachexcel.com/src=yt This tutorial will show you how to calculate bond pricing and valuation in excel. This teaches you how to do so through using the NPER() PMT() FV() RATE() and PV() functions and formulas in excel. To follow along with this tutorial and download the spreadsheet used and or to get free excel macros, keyboard shortcuts, and forums, go to: http://www.TeachMsOffice.com
Views: 171634 TeachExcel

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Views: 13933 Aswath Damodaran

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Views: 8611 Remember This

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Tim Bennett explains how an interest rate swap works - and the implications for investors. --- MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.
Views: 522098 MoneyWeek

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The big short movie small explanation on shorting the housing market, subprime mortgage crisis, and Credit default swaps. Music by: http://bensound.com
Views: 363045 ViralWhirl

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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live CFA Level II Classes in Pune (India).
Views: 26416 FinTree

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Language: Hindi, Topics Covered 1. Recap of banking sector lectures and minor updates as per latest monetary policy review (Feb 2015) and Committees for Small banks and Payment Banks 2. What is finance? Why should we start business with finance from elsewhere? 3. Type types of Financing mechanism: Debt Instrument vs Equity instruments 4. What is credit rating? What is India’s current credit rating? What factors affect it? 5. What’s the difference between Gilt Edged securities vs. Junk Bonds 6. What is bond yield and yield to maturity (YTM)? 7. How can higher bond yield and lower credit rating hurt a Government? 8. Difference between Bonds and Debentures? 9. Municipal bonds: History, their Importance in financing smart cities, SEBI’s 2015 guidelines for Municipal bonds. 10. OFCD and other types of Debentures Powerpoint available at http://Mrunal.org/download Venue: Sardar Patel Institute of Public Administration (SPIPA), Satellite, Ahmedabad, Gujarat,India Exam-Utility: UPSC CSAT, CDS, CAPF, SSC, IBPS, Banking, MBA interview
Views: 365674 Mrunal Patel

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With Peer to Peer lending, there are some risks they are not telling you. First, there is the liquidity issue where your money is essentially trapped in a loan for 3-5 years. The current aggregated default rate is variable and is dependent on the well being of the economy which could fluctuate. The returns are not guaranteed and the default rate could spike resulting in a loss rather than the paltry 6-9 percent of advertised gains. Second, the borrower is not ultimately responsible to pay you back but rather pay the intermediate company. This create some pretty peculiar situations if the company becomes insolvent. . Support more videos like this along with getting a bunch of perks here: http://www.patreon.com/BeatTheBush Get a free audiobook and 30-day trial. Even if you cancel, you still keep the book and you still support my channel for signing up. Support my channel by signing up to help me make more videos like this: http://www.audibletrial.com/BeatTheBush Credit Card for Starters Who Should NEVER Get a Credit Card: https://youtu.be/aNYZkMgTyb0 Only Use Credit or Only Use Debit: https://youtu.be/J0ZRgBIG39Q Credit Card Basics How Credit Card Calculates Interest: https://youtu.be/0Z2nWQdqa2A How Credit Card Grace Periods Work: https://youtu.be/8WuH3-PsjCA Difference Between Credit Card Inactivity and 0% Utilization: https://youtu.be/rtfJMZf_IrM Credit Card Statement Closing Date vs. Due Date: https://youtu.be/3-knvT7JbTk Does Canceling Credit Cards Affect Credit Score: https://youtu.be/jYGZukw5i-Q Can You Afford a No Limit Credit Card: https://youtu.be/sdAh7hzgJoU Credit Card Balance Transfer Hack: https://youtu.be/F2Foqg2ZTEw Credit Score Less Than 700 Maximize Credit Score while in College: https://youtu.be/pxGECoQoLLA Build Credit Fast with a \$500 Credit Limit: https://youtu.be/attQKzngqoE How to Pay off Credit Card Debt: https://youtu.be/XY8YSPapnF8 How to Build Credit with Bad Credit or No Credit [w/ Self Lender]: https://youtu.be/RNXutBGAnlM How to Boost Your Credit Score Within 30 Days: https://youtu.be/LyBjciz4-zg Credit Score More Than 700 How to Increase Credit Score from 700: https://youtu.be/MCFKNBcyAWs 740+ is Not Just For Show: https://youtu.be/1fGcpxurzgU My Credit Score: 848, How to get it Part 1: https://youtu.be/dEZLZQXRBjQ My Credit Score: 848, How to get it Part 2: https://youtu.be/Y6-SB35C7Pc My Credit Score: 848 - Credit Card Hacks and How I got it: https://youtu.be/8Xz3hi3VWfM Advanced Credit Card Tricks How to get a Business Credit Card: https://youtu.be/S3srld5_l5Y Keep 16 Credit Cards Active: https://youtu.be/yAzkEK8Y6E8 Rejected for a New Credit Card with 826 Credit Score: https://youtu.be/66O505Oj5e4 Make Credit Cards Pay You Instead: https://youtu.be/wKMJdX1fQJA Credit Card Low Balance Cancellation \$2 per mont [Still Works]: https://youtu.be/2DJjfvcMCcg Cash Back Are Credit Card Points Taxable?: https://youtu.be/Tw90h8I5JNk How to Churn Credit Cards: https://youtu.be/uw__fl38Dk4 Best Cash Back Credit Cards for 2017: https://youtu.be/e_uJweUsiDk 5% Cash Back on Everything: https://youtu.be/q9g_rySm_tI Always get 11% Off Amazon Gift Cards and Amazon Hacks: https://youtu.be/vbv6Rj2uUr4 Max Rewards: What's in My Wallet: https://youtu.be/cmJDFcbjFho How I Make 200 Dollars in 10 Minute [Hint: Credit Card Bonus]: https://youtu.be/pegq4G7ZhTI When Your Best Cash Back Card Gets Cancelled: https://youtu.be/pe7OuqxGi9M Amex Blue Cash Preferred vs. Everyday Effective Cash Back on Groceries: https://youtu.be/3ezD_QwS5e0 Double Dip Groceries Cash Back with Safeway Just for U: https://youtu.be/7kBl0W_L29U Milk the Barclays Cashforward Card for the MOST Cash Back: https://youtu.be/qf2gvrk6Evo Other Channels: BeatTheBush DIY: https://www.youtube.com/BeatTheBushDIY
Views: 228965 BeatTheBush

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Views: 1433 Invest Like a Boss

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U.S. charter schools are defaulting on bonds at a rate of 3.3 percent. According to a report made available Tuesday, the percent is a level higher than the previously recorded figure from three years ago. Charter schools, held in a number of municipal bond funds, are public schools that operate independent from school districts. They are publicly funded but use private-sector lenders to fund buildings. The reported stated the uptick in defaults is mainly due to a failure of the school to renew charter dues for poor academic performance. The study did find some state programs were improving charter schools' access to the bond market. State officials in Colorado, Utah and Texas are developing programs to allow charter operators to get enhanced credit ratings. http://feeds.reuters.com/~r/Reuters/domesticNews/~3/gFpBmkVNwMI/story01.htm http://www.wochit.com This video was produced by Wochit using http://wochit.com
Views: 46 Wochit News

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Views: 129618 Retirement Think Tank

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http://www.kanjoh.com. disclaimer - none of these videos is meant to be personalized financial advice.
Views: 49938 kanjohvideo

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Understanding Fixed-Floating Bonds
Views: 1161 InvestingForMe

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Investors are often worried about the risk that rising yields pose to their fixed income investments. After all, bond prices and yields tend to move in opposite directions, so when rates are rising that tends to push prices lower. But that relationship doesn’t necessarily ring true for investments with floating coupon rates. Collin Martin explains “floaters” on this episode of Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (1018-89DL)
Views: 1821 Charles Schwab

10:03
Just as (Macaulay) duration is weighted average maturity of bond, convexity is weighted average of maturity-squares of a bond (where weights are PV of bond cash flows). Dollar convexity is also the second derivative (d^2P/dy^2); i.e., the rate of change of dollar duration. Note: the corresponding blog entry at our website contains the downloadable spreadsheet I used here.
Views: 50552 Bionic Turtle

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http://www.elliottwave.com/r.asp?rcn=ytvideos1403&url=http://www.elliottwave.com/free_newsletters/free_newsletters-ind.aspx The debt loads of companies and governments should be easy to service given the exceptionally low interest rates. But did you know that global bond default rates have hit their highest level since 2009? Learn why the next credit crunch could be worse than 2007-2009.

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