Are you kidding me? You can't just explain me a topic I was struggling with for hours, in a mere couple of minutes! That's not how it works... until it just did. Thanks a ton mate!
So when Jim swapped with his friend the investment banker to have a fixed rate to pay, the deal is Jim pays $2,000 every month no matter what and the banker guy profits if its under 2k and loses over 2k correct?
This was so helpful! I just spend 2 hours trying to understand swaps and why would someone do this and you've explained it in less than 3 minutes! Thank you!!
I went through all videos explaining what swaps are in French, and Arabic & I understood SHIT! Once, I typed in Swaps Financial Market, this channel popped up, and it only took me 2mins to understand how swaps work. Thank you mate! Love the channel btw.
Brilliant explanation. I was prepared for 20 minutes of skullduggery and no, Just a clear concise, straightforward explanation that made perfect sense. Bravo!
Can the US use swap lines to try and stabilize the Euro, GBP and JPY exchange rates right now? Is that something that they may try to do? I don't know much about them.
thank you so much... I am preparing for the CPA and was having difficulty trying to understand why people would do this. your 2 minute video really made a difference for me. Thank you again.
There is a couple of things happening here which are like... making my head hurt because they seem impossible, not least of which is explaining something so complex so easily. The other is writing backwards.
I was running this through my calculator……. My brain! I’m watching money power and Wall Street. I looked up derivatives and swaps and both. I could not find an explanation. Then I broke down the definitions of each word. I thought ok so I’m a big company and I took out a variable loan. I’m starting to see that this loan is going in the wrong direction so I call a friend of a big company or Country and say if you have the ability to take on my loan I’ll pay you the interest only at a fixed rate. You have have to give me a fixed rate and I’ll pay you the interest. You have to take on my loan and if you win with my variable loan if it goes down you get to keep more money plus you have my Interest payments that I agreed to which makes you even more money!!!!! Your gonna love it! However and I’m not saying this to you….. I get a fixed rate that I know won’t change and I can say my company is in better shape then it was with the variable and I convinced the other guy to take on my bad loan. Now the variable rate goes up for the guy I convinced to take over and goes up by a lot. He now stupidly bought my loan and others thing he was smart but now he is screwed and can’t afford all these swaps. He goes out of business but oh no he he tied to other big companies that he owed money to and now they go out! The ones that bought the swaps based off data that said this is a huge win but didn’t realize the data was fraud screwed himself and his friends and ALL OF US. BANKS LENDING BAD LOANS AND GOVERMENTS THEN SWAPPING FOR A BETTER FIXED OPTION ….. so they thought all COMING TO A TREMENDOUS BAD ENDING ANY WAY YOU SLice it. THE SWAPS COULD OF BEEN GREAT BUT WHAT IF THE COMPANY THAT PROMISED TO PAY THE FIXED RATE WENT OUT OF BUSINESS BECAUSE THEY OBVIOUSLY DIDNT LIKE THE BAD LOAN THEY SWAPPED TO YOU. Both ways this swap could go bad. THOSE ARE MY THOUGHTS AND IM NOT SURE IF IT ACTUALLY WORKED THAT WAY BUT THATS THE ONLY INFO I COULD FIND TO GIVE ME THIS IDEA ON HOW IT WORKED IN MY MIND.
Great video, but note that you should NOT trust the RUclips auto-generated chapter titles here: Most swaps work rather differently than "Credit Default Swaps", which RUclips has auto-generated the title at 1:40 as. CDS are more similar to options in a lot of ways.
My professor couldn't explain this enough to satisfy my or other students' understanding and you're just gonna walk out on me after explaining it perfectly under three minutes ? Wow 😆
Awesome vid. If anyone thinks they can explain this in the context of what the fed and central banks around the world are doing in the midst of this financial crisis... I’m all ears If the fed eats shit on these swaps, how is that reconciled? Related question: if the fed buys junk bonds for companies that end up defaulting, how is that reconciled? (I’m sure those companies won’t be allowed to fail, but for the sake of discussion) I have a half baked understanding of how things work, would appreciate any helpful replies or links to good articles / videos
Its rare to find any teacher in any subject who takes the pains to make basic concepts simple for their students. Very rare. Else all kids would get an A+
Literally I was stuck understanding this topic, bcuz my teacher is just useless 😭 and then I finally tried searching on RUclips n I'm so glad I did, it was this simple.. thanks alooooooooot, I have a exam tommorow of this subject, this was really helpful
Are you kidding me? You can't just explain me a topic I was struggling with for hours, in a mere couple of minutes! That's not how it works... until it just did. Thanks a ton mate!
I have bad news for you if it takes you hours to figure out how swaps work lol
@@wolfgangi thanks for your encouraging words
so who is the swap dealer?
SAME here... short and sweet
I'm Sheldon Cooper. I don't get sarcasm.
Before the vid: wtf is a swap?
After the vid: I'm happy to explain what a swap is.
Thank you
Thanks for the explanation of your thoughts
So when Jim swapped with his friend the investment banker to have a fixed rate to pay, the deal is Jim pays $2,000 every month no matter what and the banker guy profits if its under 2k and loses over 2k correct?
You were born to teach. You are a natural. thanks.
Short and sweet. Thank you
"that's what she said"
Wow, that was phenomenal - unbelievably simple explanation. Thanks a lot
I just don't understand how this channel only has 70k subs. Gold!
Yo I was thinking the same thing he deserves so much
now you got it?
@ Yup :)
This was so helpful! I just spend 2 hours trying to understand swaps and why would someone do this and you've explained it in less than 3 minutes! Thank you!!
Stopping by here before reading Criand's Theory of Everything.
Its impressive that hes explaining this whilst also writing backwards
I went through all videos explaining what swaps are in French, and Arabic & I understood SHIT! Once, I typed in Swaps Financial Market, this channel popped up, and it only took me 2mins to understand how swaps work. Thank you mate! Love the channel btw.
Paddy's Back!!?!! Yey
I'm swapping my professor for this guy
Has anyone ever thought how did he write every letter backwards in the glass just to present his teaching for us ?
Wow what a video... I was struggling to understand this during my class lecture 😹
Greatest explanation for swaps by far. Thank you!
Came here because of the big short
Brilliant explanation. I was prepared for 20 minutes of skullduggery and no, Just a clear concise, straightforward explanation that made perfect sense.
Bravo!
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Thank you so much. This concept was surprisingly hard for me to grasp but you explained so well.
You make everything so easy to understand! Thanks :)
Wait, what just happened? You nailed it in a couple mins....
If aliens visit and tell me to take them to our leader, I'm bringing them to you.
Tune into an exclusive interview with Binance's CEO for a sneak peek into future developments
Can the US use swap lines to try and stabilize the Euro, GBP and JPY exchange rates right now? Is that something that they may try to do? I don't know much about them.
Fuck me sideways. Why cant my professor explain terminology like this legend
thank you so much... I am preparing for the CPA and was having difficulty trying to understand why people would do this. your 2 minute video really made a difference for me. Thank you again.
Wow I just realized this teacher writes reversely :o
Plexiglass and flip the image in post. Not to downplay Paddy's skills though.
@@marketplaceAPM That's pretty cool! Thanks for the great content
This way extremely helpful, however am still confused why would Bruce take such a risk?
There is a couple of things happening here which are like... making my head hurt because they seem impossible, not least of which is explaining something so complex so easily. The other is writing backwards.
Very well put
That's such a nice video, well explained! Subscribed :)
Am I the only one impressed that he's explaining this while writing backwards?
Wooooooow. Amazing
oh my god where can i get this kind of simple teachings. proud of u dear thanks
Great video. I came here because I'm trying to understand the swaps between Citadel with their short positions on GME and others.
Same ape
The gentleman is genus at explaining and he makes learning so easy and funny. Thanks!
Well done. Trying to understand it, bit by bit. Brought me a bit closer. 👍
Perfection👌
excellent explanation, thank you so much!
subscribed instantly. You're talented at teaching
Scientific insights: the significance of refund information
great explanation! thought it was double the speed at first lol
I was running this through my calculator……. My brain! I’m watching money power and Wall Street. I looked up derivatives and swaps and both. I could not find an explanation. Then I broke down the definitions of each word. I thought ok so I’m a big company and I took out a variable loan. I’m starting to see that this loan is going in the wrong direction so I call a friend of a big company or Country and say if you have the ability to take on my loan I’ll pay you the interest only at a fixed rate. You have have to give me a fixed rate and I’ll pay you the interest. You have to take on my loan and if you win with my variable loan if it goes down you get to keep more money plus you have my Interest payments that I agreed to which makes you even more money!!!!! Your gonna love it! However and I’m not saying this to you….. I get a fixed rate that I know won’t change and I can say my company is in better shape then it was with the variable and I convinced the other guy to take on my bad loan. Now the variable rate goes up for the guy I convinced to take over and goes up by a lot. He now stupidly bought my loan and others thing he was smart but now he is screwed and can’t afford all these swaps. He goes out of business but oh no he he tied to other big companies that he owed money to and now they go out! The ones that bought the swaps based off data that said this is a huge win but didn’t realize the data was fraud screwed himself and his friends and ALL OF US. BANKS LENDING BAD LOANS AND GOVERMENTS THEN SWAPPING FOR A BETTER FIXED OPTION ….. so they thought all COMING TO A TREMENDOUS BAD ENDING ANY WAY YOU SLice it. THE SWAPS COULD OF BEEN GREAT BUT WHAT IF THE COMPANY THAT PROMISED TO PAY THE FIXED RATE WENT OUT OF BUSINESS BECAUSE THEY OBVIOUSLY DIDNT LIKE THE BAD LOAN THEY SWAPPED TO YOU. Both ways this swap could go bad. THOSE ARE MY THOUGHTS AND IM NOT SURE IF IT ACTUALLY WORKED THAT WAY BUT THATS THE ONLY INFO I COULD FIND TO GIVE ME THIS IDEA ON HOW IT WORKED IN MY MIND.
Such a simple yet powereful analogy used! Thanks for helping me to understand.
thank you so much for hours I couldn't understand, and you made it clear in a few minutes!
So basically the person taking on the risk is getting paid in interest rate fees?
Well explained. I had a hard time understanding this!
Thanks a lot for this. You saved me from alot if stress
Wait, then how do swaps work for equities?
Great video, but note that you should NOT trust the RUclips auto-generated chapter titles here: Most swaps work rather differently than "Credit Default Swaps", which RUclips has auto-generated the title at 1:40 as. CDS are more similar to options in a lot of ways.
ooooooo holy shit the CFA textbook does not explain this well at all!
I like how Jim the non risk taker is the one who has lost his hair over the year.
Throwing marker pen is his landmark 😅🤣
Are these the same types of swaps talked about in rhe movie The Big Short?
yes.
Greatest explanation. You've explained much more efficiently than chat gpt!!!!!
My professor couldn't explain this enough to satisfy my or other students' understanding and you're just gonna walk out on me after explaining it perfectly under three minutes ? Wow 😆
how are you so easily drawing in reverese..
Good explanation... thanks.
Total return swaps... For dummies! 😁. Thanks! Great explanation!
Excellent, thank you.
Very good explanation.
A BIG THANK YOU. was playing wsr and knew the terminology but couldn't get any video to explain how i make or lose money.
i need you as a teacher. well done
very simply explained, thank you!
Amazing video
Thanks a lot from India
Really good explanation!
Thats incredibly crazy !! U just explained it like its some childs play!Thanks !!
Crazy simple analogy
Awesome vid. If anyone thinks they can explain this in the context of what the fed and central banks around the world are doing in the midst of this financial crisis... I’m all ears
If the fed eats shit on these swaps, how is that reconciled?
Related question: if the fed buys junk bonds for companies that end up defaulting, how is that reconciled? (I’m sure those companies won’t be allowed to fail, but for the sake of discussion)
I have a half baked understanding of how things work, would appreciate any helpful replies or links to good articles / videos
Wow, such simplicity
damn you made that so simple.
THIS IS INSANELY GOOD.. EVEN BETTER THAN HOW MY TEACHER EXPLAINED TO ME 😭 GRATEFULLLL ❤
Its rare to find any teacher in any subject who takes the pains to make basic concepts simple for their students. Very rare. Else all kids would get an A+
Great explanation
wow. awesome explanation
This is quit cool.
Wow!! what an explanation... Thank you and best of luck for your good work :)
Literally I was stuck understanding this topic, bcuz my teacher is just useless 😭 and then I finally tried searching on RUclips n I'm so glad I did, it was this simple.. thanks alooooooooot, I have a exam tommorow of this subject, this was really helpful
Just subed! Helping you reach 100k by years end! Thanks your simple yet effective explanation 👍
Thank you for this
One question though, why doesn't 'Jim' just take out a fixed loan instead and not bother with a swap?
Shot in one take, writing backwards, and making something complex easy to understand?
Bravo.
Awesome video! Keep it up :)
10/10 Explanation
Cheers
I’m still kinda lost
Hold up, are you actually mirroring your writing? Or is it an edit? Cause thats impressive
thank you so much for this incredibly simple explanation!
I enjoyed this video. What a clever way of explainig rather complex concepts! I increased my knowledge thanks to you.
Nicely explained.
Excellent explanation. THANK YOU.
Having perceived that you keep recording and publishing videos on, I obviously got a sweet relaxing drink.
nice and clear
Legend
What an amazing explanation! Should have come here 2 hours ago
you are the best!
Thank you....Man I could not understand why someone would wanna swap cashflows
well explained!
You are the best!
i got lost on the horses
Sooo how do I trade a swap?