Home
Search results “Default rate on bonds”
Cumulative probability of default on risky bond
 
08:18
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: 18045 Bionic Turtle
Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
 
13:16
Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 543313 Khan Academy
Conditional default probability (hazard rate)
 
08:02
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: 28447 Bionic Turtle
Excel Finance Class 54: Bonds & Interest Rate Risk
 
10:43
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: 12292 ExcelIsFun
Session 2: Understanding Risk - The Risk in Bonds
 
16:05
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: 13565 Aswath Damodaran
Intro to the Bond Market
 
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/
Bonds Default Risk and Credit Ratings
 
05:01
Bond default risk; bond credit ratings; determinants of credit ratings; yield spreads of corporate and municipal bonds over Treasuries
Views: 1864 Elinda Kiss
How to calculate the bond price and yield to maturity
 
07:33
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: 298912 I Hate Math Group, Inc
Calculating the Yield of a Zero Coupon Bond
 
05:55
This video demonstrates how to calculate the yield-to-maturity of a zero-coupon bond. It also provides a formula that can be used to calculate the YTM of any zero-coupon bond. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 37532 Edspira
How Are Bonds Rated?
 
02:44
When investing in bonds, it may be beneficial to consider bond ratings. Learn about the three main ratings agencies and how they evaluate bond issuers. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 17169 Zions TV
January 2019 Data Update 2: The Bond Market Message
 
10:58
In 2018, the US bond market was in sync with the US equity market, afflicted by the same fears and revealing the same patterns The US 10-year treasury bond rate, which started the year at 2.41% and rose as high as 3.24% in early November 2018, dropped back as worries about economic growth mounted. A flattening yield curve reinforced that message of lower growth. Looking to the next year, the gap between the ten-year bond rate (2.68%) and an intrinsic risk free rate (inflation + real growth for 2018 = 5.54%) is high, suggesting either that bond investors are being too pessimistic about future growth, or that growth will drop dramatically. I believe that we will split the difference, with higher T. Bond rates by the end of 2019 and lower economic growth in the US in 2019 than in 2018, albeit not a recession. Finally, the price of risk in the bond market (default spreads) rose in the last quarter of 2018, mirroring the rise in equity risk premiums. Investors in both stock and bond markets seem to have reached consensus that growth will slow and that there is more to fear. That said, they have been wrong in the past and we will see what 2019 delivers. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/DataUpdate2for2019.pdf Datasets: 1. T. Bond rate versus Intrinsic Riskfree rates - 1953 to 2018 (http://www.stern.nyu.edu/~adamodar/pc/blog/IntrinsicvsActualRates2019.xlsx)
Views: 8115 Aswath Damodaran
Risks of Bonds
 
07:21
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.
Introduction to the yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
09:57
Introduction to the treasury yield curve. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-bonds?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 368118 Khan Academy
Risk Premium 1
 
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: 16462 Harpett
Treasury bond prices and yields | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
03:47
Why yields go down when prices go up. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/annual-interest-varying-with-debt-maturity?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 249898 Khan Academy
FRM: Interest rate swap (IRS) valuation: as two bonds
 
08:05
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: 25741 Bionic Turtle
FRM: TI BA II+ to compute bond yield (YTM)
 
09:22
Given four inputs (price, term/maturity, coupon rate, and face/par value), we can use the calculator's I/Y to find the bond's yield (yield to maturity). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 131960 Bionic Turtle
2019 Bond Market Outlook
 
01:50
We ended 2018 with a cautious outlook on the bond market. Our biggest concern was that the Federal Reserve’s series of interest rate hikes would reduce demand for bonds, especially bonds in the riskier segments of the market like high-yield bonds; but recently the Federal Reserve has indicated that they’re unlikely to raise interest rates again in the near-term. Does that mean we should throw caution to the wind? Kathy Jones takes a look 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/ (0219-95X1)
Views: 7378 Charles Schwab
FRM: How to value an interest rate swap
 
09:14
At inception, the value of the swap is zero or nearly zero. Subsequently, the value of the swap will differ from zero. Under this approach, we simply treat the swap as two bonds: a fixed-coupon bond and a floating-coupon bond. The value of the swap is difference between the two. For more financial risk videos, visit our website at http://www.bionicturtle.com!
Views: 177197 Bionic Turtle
Interest rate risk and reinvestment risk in bond investment
 
06:00
Interest rate risk and reinvestment risk in bond investment
Advantages of Investing in Municipal Bonds
 
08:18
This video discusses the advantages of investing in municipal bonds: namely, the historically lower risk of default (relative to corporate bonds) and tax-exempt nature of most municipal bonds. The video provides an example to show how the after-tax return of a municipal bond can be higher than a corporate bond that has a higher pretax yield. The video also demonstrates why municipal bonds are more attractive to high-income investors by showing that the tax-equivalent yield of a municipal bond increases as a person's tax rate increases. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 8847 Edspira
Khan Academy - Bond Prices and Interest Rates
 
13:33
Khan Academy on Bond Prices and Interest Rates
Views: 151326 Jonathan Horn
Understanding Fixed-Floating Bonds
 
04:54
Understanding Fixed-Floating Bonds
Views: 1526 InvestingForMe
Tim Bennett Explains: What are fixed income securities (bonds) - part 1
 
09:58
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: 45373 Killik & Co
Introduction to bonds | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
08:42
What it means to buy a bond. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 528790 Khan Academy
How Do Interest Rates Affect Bonds?
 
04:15
The traditional view of bonds as safe places to stash money you’ll soon need to access doesn’t square with the current rising-interest-rate environment. It is a truth universally acknowledged, that a retail investor in possession of a good fortune must be in want of a low-risk asset class in which to stash some of it, and that bonds are among the best options of that type. But -- with deepest thanks and apologies to Jane Austen -- universally acknowledged truths sometimes turn out to be false, under certain circumstances. Case in point, from deep in this month's Motley Fool Answers mailbag comes a query from a listener who was disturbed to read an article in The New York Times asserting that corporate debt is experiencing a valuation bubble, and that bond funds have become a riskier place to invest than most people recognize. Is this true, he asks, and if so, what should an investor do in response? To answer, special guest Buck Hartzell, director of Investor Learning and Operations at The Motley Fool, joins hosts Alison Southwick and Robert Brokamp in this segment. ------------------------------------------------------------------------ Subscribe to The Motley Fool's YouTube Channel: http://www.youtube.com/TheMotleyFool Or, follow our Google+ page: https://plus.google.com/+MotleyFool/posts Inside The Motley Fool: Check out our Culture Blog! http://culture.fool.com Join our Facebook community: https://www.facebook.com/themotleyfool Follow The Motley Fool on Twitter: https://twitter.com/themotleyfool
Views: 416 The Motley Fool
Bootstrapping
 
08:07
Calculation of the theoretical Treasury spot rate curve using bootstrapping and the value of a bond using spot rates.
Views: 26513 EduPristine
Interest Rate Risk
 
07:07
http://www.kanjoh.com. disclaimer - none of these videos is meant to be personalized financial advice.
Views: 29032 kanjohvideo
Argentina Default Spreads To Par Bonds, Raising Acceleration Risk
 
00:42
Argentina's debt default spread to its Par bonds on Friday, after the country failed to complete an interest payment, raising the risk that creditors could demand that its cash-strapped government immediately repay all of its debt. The country last month deposited a $161 million payment with a newly appointed local trustee to try to circumvent U.S. court orders for it to settle with "holdout" investors suing for full repayment of bonds from a 2002 default before paying debtholders who accepted a restructuring deal. http://news.yahoo.com/argentina-default-spreads-par-bonds-raising-acceleration-risk-122318769--sector.html http://www.wochit.com
Views: 51 Wochit News
"Quantifying Liquidity and Default Risks of Corporate Bonds over the Business Cycle"
 
27:08
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: 572 IDC Herzliya
Chapter 6, Part 1:  The Risk Structure of Interest Rates
 
11:34
This video explain how default risk, liquidity, and tax differences affect the interest rates of bonds. Thanks for watching!
Credit default swaps | Finance & Capital Markets | Khan Academy
 
10:57
Introduction to credit default swaps. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/credit-default-swaps-tut/v/credit-default-swaps-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/credit-default-swaps-tut/v/credit-default-swaps-cds-intro?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 612858 Khan Academy
FRM: Z-spread (versus bond's nominal credit spread)
 
08:20
(Please note: spreadsheet is available on the website). A nominal credit spread is the difference in yields (YTM), which are single factors; therefore, implicitly, the nominal spread compares flat curves. The Z-spread improves by giving the spread that adds across the entire spot (zero) rate curve; if the Z-spread is added to all points on the theoretical spot rate curve, the shift curve discounts the bond's cash flows to a present value that equals the bond's market price. In this way, the Z-spread represents compensation for credit risk across the entire curve. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 25887 Bionic Turtle
Debt Troubles Expand: Distressed Bond Issuers Traded Jumps 110%
 
02:38
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.
Financial Market #1: Investment Funds [ETF, ReITs, InvITs], Debt, Equity, & Derivatives
 
01:01:59
- since last three years, UPSC has asked barely 1-2 MCQs from the Finance, capital market and share market topics, therefore, we will only try to gather a working knowledge about these topics rather than pursuing technical accuracy or academic excellence. - There are two ways to start a company: debt and equity. - Debt instruments are further classified in 1) short-term instruments such as T-bills, Cash Management Bills (CMBs), Commercial papers, Promissory Notes, Certificate of Deposits - and Commercial Bill and 2) long-term instruments such as Loan, external commercial borrowing (ECB), Dated securities (G-Sec), Bonds (UK), Debentures (US), Municipal Bonds and Inflation Indexed Bonds - what is credit rating? Why does economic survey say that foreign credit rating agencies are having double standards for Indian sovereign bonds? - What is Bond Yield to maturity (YTM)? How is it related with RBI’s monetary policy and economic growth? - What was the impact of Donald Trump’s election and demonetisation on the yields of Indian government’s bonds. - What a coupon bonds, zero-coupon bonds, bearer bonds. Why is Fiat currency called “zero interest anonymous bearer bond? - Types of equity finance: Shares, preferential shares, venture capital funds and angel investors. What is seed capital and sweet equity? - Taxability on share dividend and bond interest? - Share: Face value, At par value, premium value, initial public offer (IPO), follow-on public offer, public issue, private issue, rights issue, preferential shares; Share buyback, share splitting, retained earnings - ADR- American depository receipts, global depository receipts (GDR), Bharat depository receipts (BhDR) - Types of mutual fund: net asset value (NAV), exit load. - Hedge funds and alternate investment funds. - Exchange Traded Funds (ETF), InvITs: infrastructure investment trusts, REITs: Real estate investment trusts, salient features and benefits. - Derivatives, securitisation, forward market, future market, spot market. Call option and Put Option. - SWAP agreements: Credit Default Swap, Currency Swap, Interest swap - Faculty Name: You know who - All Powerpoint available at http://mrunal.org/powerpoint - Exam-Utility: UPSC IAS IPS Civil service exam, Prelims, CSAT, Mains, Staff selection SSC-CGL, IBPS-PO/MT, IBPS-CWE, SBI PO & Clerk, RBI and other banking exams; LIC, EPFO, FCI & other PSU exams; CDS, CAPF and other defense services exams; GPSC, MPPCS, RPSC & other State PCS services exams with Indian Economy, Budget, Banking, Public Finance in its syllabus- with descriptive questions and answer writing.
Views: 175472 Mrunal Patel
Interest rate swap 1 | Finance & Capital Markets | Khan Academy
 
03:51
The basic dynamic of an interest rate swap. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/interest-rate-swaps-tut/v/interest-rate-swap-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/credit-default-swaps-tut/v/financial-weapons-of-mass-destruction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Interest is the basis of modern capital markets. Depending on whether you are lending or borrowing, it can be viewed as a return on an asset (lending) or the cost of capital (borrowing). This tutorial gives an introduction to this fundamental concept, including what it means to compound. It also gives a rule of thumb that might make it easy to do some rough interest calculations in your head. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 269342 Khan Academy
Real and nominal return | Inflation | Finance & Capital Markets | Khan Academy
 
03:11
Inflation and real and nominal return. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/inflation-tutorial/real-nominal-return-tut/v/calculating-real-return-in-last-year-dollars?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/inflation-tutorial/inflation-scenarios-tutorial/v/hyperinflation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: If the value of money is constantly changing, can we compare investment return in the future or past to that earned in the present? This tutorial focuses on how to do this (another good tutorial to watch is the one on "present value"). About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 173641 Khan Academy
Bonds: effective of maturity on bond price
 
07:19
A tricky learning objective in the FRM is "Discuss the effect maturity has on the price of a bond." Answer: Bond price increases with maturity whenever the coupon rate exceeds the forward rate over the period of maturity extension. Price decreases as maturity increases whenever the coupon rate is less than the relevant forward rate.
Views: 8217 Bionic Turtle
Bond convexity
 
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: 53445 Bionic Turtle
Investment-Grade Corporate Bonds Yield Strong Returns Despi
 
03:43
Bond returns on investment-grade heavy industrial sectors in the U.S. have performed quite well despite continued uncertainty in the financial markets. In this CreditMatters TV segment, Standard & Poor's Director Nick Kraemer discusses historical performance and risk dynamics at the sector level. Topics include quarterly bond returns, borrowing costs, and default rates.
Views: 221 S&P Global Ratings
Par yield
 
10:03
The yield (aka, yield to maturity, YTM) is the single rate that correctly prices the bond; it impounds the spot rate curve. For each coupon bond, there is a different implied yield. The PAR YIELD is the yield (YTM) for a bond that happens to price at par, and therefore is equal to this bond's coupon. So, the par yield (as a special case or particular YTM) is the coupon rate on a bond priced at par.
Views: 18282 Bionic Turtle
Consider an Alternative Bond ETF Strategy to Limit Interest Rate Risk
 
03:44
The Federal Reserve has tightened its monetary policy as it gradually hikes interest rates to head off a potentially overheating economy. While rising rates can weigh on fixed-income portfolios, bond investors may look to interest rate-hedged exchange traded fund strategies to generate the same level of yields they are accustomed to and limit rate risk. "Fixed income has a much more direct correlation to what's happening with respect to rates, and really 2018 has been a difficult environment for fixed-income investors," Kieran Kirawn, Senior Investment Strategist for ProShares, said at the Charles Schwab IMPACT 2018 conference. Fixed-income investors who are looking for strategies in a rising rate environment could look at specialized strategies designed for hedging against rising rates. For example, the ProShares Investment Grade-Interest Rate Hedged ETF (Cboe: IGHG) and ProShares High Yield Interest Rate Hedged ETF (Cboe: HYHG) are two rate hedged ETF strategies that try to eliminate the rising rate risks. The two rate-hedged bond ETFs achieve their diminished rate-risk status by shorting Treasury notes so that the underlying portfolio shows a near-zero duration – duration is a measure of sensitivity to changes in interest rates, so a zero duration translates to no sensitivity to changes. Read more at https://www.etftrends.com/rising-rates-channel/consider-alternative-bond-etf-strategy-limit-interest-rate-risk/.
Views: 69 ETF Trends
68: Municipal Bonds, How Insiders Scale Their Tax Free Income
 
01:02:13
Michael Foster, the ‘CEF Professor’ from Contrarian Outlook, joins us for another episode to explain how to use municipal bonds to scale your tax-free income. During this episode, you’ll find out how to buy municipal bonds, determine if you should buy an individual muni bond, and understand the risk levels of the entire process. You’ll learn how a municipal CEF operates, what tools to use, and how interest rates impact closed end funds. Listen to the end to hear Michael’s top three muni funds and what Sam and Johnny Invest into themselves. Full Show Notes - http://investlikeaboss.com/ilab-68-municipal-bonds-insiders-scale-tax-free-income/ Links: Contrarianoutlook.com - https://contrarianoutlook.com/ The CEF Newsletter - https://contrarianoutlook.com/secure-fast-gains-cefs/WEB1 Where are we: Sam/Michael – Bangkok Johnny – Ukraine Recommended: Link to the newsletter: CEF Insider - https://contrarianoutlook.com/secure-fast-gains-cefs/NR-ILAB0817CEFI 2 Recent Articles on Municipal Bonds: The Shockingly Common Mistake That’s Costing You Thousands - https://contrarianoutlook.com/the-shockingly-common-mistake-thats-costing-you-thousands/ These 6%+ Yielders Are a Screaming Bargain - https://contrarianoutlook.com/these-6-yielders-are-a-screaming-bargain/ The muni funds recommendations discussed: Neuberger Berman New York Intermediate Municipal Fund (NBO) Nuveen New Jersey Quality Municipal Income Fund (NXJ) Pioneer Municipal High Income Trust (MHI) CEFconnect.com - https://www.cefconnect.com/ Discussed: ILAB 63 – Talking CEFs for 9.9%+ Yield with ‘CEF Professor’ Michael Foster - http://investlikeaboss.com/ilab-63-talking-cefs-9-9-yield-cef-professor-michael-foster/ Try FreshBooks Free - https://freshbooks.com/invest Books: Start Here – Recommended Reading - http://investlikeaboss.com/start-here/ Time Stamps: 06:09 – Are muni bonds boring? 07:27 – Why others invest in muni bonds? 09:01 – Tax considerations 10:02 – Three ways to buy municipal bonds 10:40 – Should you buy an individual muni bond? 13:00 – How does a municipal CEF operate? 15:25 – Average cap size 17:10 – Close end funds and rising interest rates 23:03 – Market trends and sell off 25:15 – Tools, software, and historical returns 26:59 – What is the risk level? 27:06 – Default rates 29:29 – California, New Jersey, Illinois 34:46 – Should you worry about fees? 38:55 – Recommended muni funds 48:42 – Investing in muni bonds 57:36 – Wealthfront investments If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! - http://investlikeaboss.com/bonus/ Copyright 2017. All rights reserved. Read our disclaimer here.
Views: 1852 Invest Like a Boss
Why You Should Not Invest in Peer to Peer Lending | BeatTheBush
 
10:13
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: 258010 BeatTheBush
Financial Management - Lecture 13
 
41:38
interest rates levels, nominal interest rates, determinants of interest rates, quoted interest rates, nominal interest rates, real interest rates,risk-free interest rates, real risk-free interest rates, nominal risk-free interest rates, quoted risk-free interest rates, inflation, premium, risk premium, inflation premium, purchasing power, purchasing power premium, default risk, default risk premium, liquidity risk. liquidity premium, maturity risk, maturity risk premium, volatility risk, price risk, interest rate risk, expected inflation, fungible, fungibility, marketable, marketability, reinvestment risk, TIPS, calculation risk, inflation-reporting risk, risk-free bonds, default-risk bonds, currency denomination.
Views: 28091 Krassimir Petrov
The case for investing in municipal bonds | Columbia Threadneedle
 
01:21
Why should investors consider municipal bonds? In this video, Head of Municipal Investing Catherine Stienstra explains several factors that make municipal bonds a compelling choice today. Taxable-equivalent yields are attractive and the default rate is generally low. Importantly, municipal bonds can outperform in a rising rate environment. To read our latest investment insights, click here: https://www.columbiathreadneedleus.com/blog For more videos from Columbia Threadneedle Investments: https://www.youtube.com/ctinvest_us To learn more about Columbia Threadneedle Investments, click here: http://www.columbiathreadneedle.com/us
Session 4: Risk free Rates (continued) and first steps on ERP
 
01:22:03
We started the class by completing the discussion of risk free rates, exploring why risk free rates vary across currencies and what to do about really low or negative risk free rates. The blog post below captures my thoughts on negative risk free rates: http://aswathdamodaran.blogspot.com/2016/03/negative-interest-rates-unreal.html We are about halfway through the discussion of equity risk premiums but the contours of the discussion should be clear. a. Historical equity risk premiums are not only backward looking but are noisy (have high standard errors). You can the historical return data for the US on my website by going to http://www.stern.nyu.edu/~adamodar/New_Home_Page/data.html Click on current data, and look to the top of the table of downloadable data items. b. Country risk premium: The last few months should be a reminder of why country risk is not diversifiable. As you see markets are volatile around the world, I think you have a rationale for a country risk premium. You can get default spreads for country bonds on my site under updated data. If you are interested in assessing and measuring country risk, to get from default spreads to equity risk premiums, you need two more numbers. The first is the standard deviation for the equity market in the country that you are trying to estimate the premium for. Try the Bloomberg terminal. Find the equity index for the country in question (Bovespa for Brazil, Merval for Argentina etc.) and type in HVT. This should give you the annualized standard deviation in the index - change the default to weekly and use the 100-week standard deviation. Do the same for the country bond in question. The two standard deviations should yield the relative volatility. If you have trouble finding either number, just multiply the default spread by 1.4 to get a rough measure of the country risk premium. If you want my estimates of country risk premiums, check under updated data on my website. The direct link is below: http://www.stern.nyu.edu/~adamodar/pc/datasets/ctryprem.xls You can also see my latest blog post on country risk here: http://aswathdamodaran.blogspot.com/2017/01/january-2017-data-update-4-country-risk.html Start of the class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/tests/riskfree.pdf Slides: http://www.stern.nyu.edu/~adamodar/podcasts/valUGspr17/session4.pdf Post class test: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session4test.pdf Post class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/postclass/session4soln.pdf
Views: 16121 Aswath Damodaran
credit 3
 
00:16
Agencies do not attach a hard number of probability of default to each grade, preferring descriptive definitions such as: "the obligor's capacity to meet its financial commitment on the obligation is extremely strong," or "less vulnerable to non-payment than other speculative issues ..." (Standard and Poors' definition of an AAA-rated and a BB-rated bond respectively).[6] However, some studies have estimated the average risk and reward of bonds by rating. One study by Moody's[7][8] claimed that over a "5-year time horizon" bonds it gave its highest rating (Aaa) to had a "cumulative default rate" of 0.18%, the next highest (Aa2) 0.28%, the next (Baa2) 2.11%, 8.82% for the next (Ba2), and 31.24% for the lowest it studied (B2). (See "Default rate" in "Estimated spreads and default rates by rating grade" table to right.) Over a longer period, it stated "the order is by and large, but not exactly, preserved"
Views: 3 Alamgir Hossain
What Would Happen If USA Stopped Paying Its Debt?
 
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: 1850186 The Infographics Show
Rising Interest Rates Bad for Bonds - Everything Investments
 
01:34
Interest Rates Bad for Bonds - Everything Investments Sign up for our newsletter today http://eepurl.com/ES-x5 Find out more about this at our website http://www.everythinginvestments.com When interest rates go up, bond prices fall. The reason for this is because income investors looking to loan money out, wonʼt buy a lower rate bond, if they can purchase one today for a higher rate. The opposite is true for when interest rates fall, this causes investors to pay a higher price for bonds issued out with higher rates, so when interest rates fall, bonds rise in value. Lets use an example, lets say the U.S. Treasury is issuing out bonds at 2% today, this means that for every $100 invested, you are receiving $2 per year until the date of maturity. However if rates rise to 4%, your bond could fall in value 50%, why? Because in order for a new investor to receive the same 4% maturity he will get from a new bond issued, he will need to purchase your bond for $50, giving him $2 a year in interest which is 4% return. It is important to understand this only effects bond traders, if you hold any bond to maturity, assuming the borrow doesnʼt default, you will receive your entire principal plus interest. So as long as you hold a bond to maturity, you wonʼt lose money. However this