I watched a 2 hours lecture twice just to know and understand how swap works, but I got nothing. I watched this 15 minutes video only once and I got the whole idea. Very grateful
I am studying for an exam right now, and this has come in really handy. I really could not understand the concept of interest rate swaps earlier from text books and you really explained it in such an easy manner. I am so stunned and genuinely happy that I now understand this concept. Thank you. Thank you so much for explaining it in such an easy to understand way🥰
this is brilliant content - I was never confident with explaining what swaps are and now I feel like I could confidently go into my interview to explain! thank you so much!!
Why has no textbook ever thought to explain it this way? We spend hard-earned money buying books that intentionally obfuscate things and leave the reader more confused than they were before reading them. Thanks so much Tim Bennett for making this rocket science of a concept feel like ABC. I must confess for a moment there I was checking the comment section expecting to see people who understood swaps screaming about how wrong his explanation was because, by Jove, there's no way this concept could be this simple. From the comments so far, I can now fully accept Tim's explanatory genius. Again, thanks Tim.
Actually I might do a basic currency swap soon. Caps floors and collars are interesting too but require some background knowledge about options (a cap is just a string of options, as is a floor, with a collar being the two in combination). Thanks for the suggestions. Tim.
Extremely well explained! I kept asking where the original loans were coming from to better understand why the two companies need to enter into a swap agreement. You're video is the only I could find that answers my question. Thank you!
This is the best explanation ever for newbie, if you know absolutely nothing about swap or are confused. He really explained it as you were a five year old which is something I wanted lol
Sir, I just learned the the Interest Swap and taught it to 7 colleagues through class room training. Once again Thanks a lot. I have been assigned a new Project - Canara Bank Derivatives where the implementation is going on. Your understanding way and constructing the sentences wisely helped to understand the concept/functionality.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
You are AWESOME! I was looking over my boyfriend's shoulder and asked what a swap was and he didn't feel like explaining. So I watched this and now I'm talking to him about LIBOR and shit. THANK YOU
I came across this video while looking for a swap presentation to send to a lawyer friend to clue him in a little, whilst it is a very user friendly explanation, there are some fundamental and fairly crucial problems, particularly when you look at it from a practical stand point. Bare with me this may take a while!
I am an engineer undergraduate and just wanted to inform you that your new job is to teach me all the terms that are flying around in financial movies. Thank you for that, keep the good work up :)
You kept me fully interested until the end. You enlightened me in a moment when you said it is financial magic. It is the simplest and straight to the point IRS explanation I've ever found.
I think it helps when trying to understand this to consider things from the perspective of the swaps bank. It gets together with the companies, asks them what they are offered, and notices that the overall amount of interest for them to pay would be less if they were both to go for the rate they would prefer not to go for. This becomes obvious when you see that the total amount of interest paid to the banks when each company goes with its initial intention: 5M((libor for A) + (10% for B) = libor+10%), is greater than the amount for the opposite situation 5M((7% for A) + (libor+1 for B) = libor+8%). It sees that there is money to be saved. Therefore it then recommends that the companies pursue the borrowing option which is opposite to their intention with respect to banks A and B with the assurance that, through the swapping they'll do with the swaps bank, they will in fact end up paying a fixed or variable amount in accordance with their initial intention. Some of the saving will be kept by the companies, and the rest will be appropriated by the swaps bank.
Thanks a lot !! Your Explanation really cleared my idea of Swap, for a beginner like me. Few questions though : 1. What is Swaps Bank ? 2. What i read and thought that SWAP is a contract between two parties? 3. What if the L.I.B.O.R goes high? Isn't that a loss for Company A ? Thanks!
You explained the hard finance concept in a so vivid and gentle way~~ I think I really got the business model of a swap bank Making money by offering better financial deal to clients! It’s really the magic of finance
matschbirne - that's right, the whole thing depends on the counter parties not defaulting. Of course a bank can separately protect itself using credit derivatives (see my video on what is a credit default swap for example) but these also carry counterparty default risk!! So one bank going bust can have a massive ripple effect as we have seen....
fair enough mate. As i said at the beginning, it does convey the theory well, and for what it's worth it's by far one of the better ones on youtube for doing that.
I wish I would've watched this during my Money and Banking Class last semester. It would've saved me a great big headache trying to piece this together off my professors lectures.
Hello Sir . I find your study material so effective that no other tutor lecture suits me Can u post a lecture of yours covering option strategies in detail like synthetic long call , covered call , butterfly .. Waiting for your video eagerly .. Thanks
i have been doing marketing throughout uni. but i have decided to apply for an internship at MS. so here i am. do not know what does equity swap means but now i do. thanks!
HI! Company A is paying Libor to Swaps Bank, and receiving 8% from them, and it's also paying 7% fix rate to Bank A. Thus, Company A net payment is: Libor - 8% +7% = Libor - 1%
Sir, you are amazing! i understood now what a swap is and believe it or not i spended over an hour trying to understand it and i couldn't, for that you have my appreciation and a like+fave. Again thank you a lot kind sir.
Want to make money in the stock market, and do not know how, you just have to do a course in FOREX Trading to learn to invest, not miss the opportunity only for this week is $ 1 (with this financial livertad achieved it already I do) look here facebook.com/EARN-MONEY-WITH-FOREX-1026630467434909/
Thanks for the explanation. Your videos are a great help. The way you explain and use explamples in your videos are so great. it makes such enjoyable to watch it and learnt it. Thank you so much.
I recently got a job in IT in an investment back as software engineer. I've watching all your video's and to be honest they are really useful and interesting. I had 0% knowledge of investment banking and within two days itself I am having a good idea as in what is actually going on. I just wanted to make a request....Can you post a video explain the Trade Life Cycle as in how the trade actually work in systems, Front office and Middle office ecosystem etc. Thank you soooo much
To explain something like this in a way that someone new can understand is really admirable.
Exactly!
Indeed! 😍
Totally! I think I got it
He’s the best
@@kelliezhang6750 O
I watched a 2 hours lecture twice just to know and understand how swap works, but I got nothing. I watched this 15 minutes video only once and I got the whole idea. Very grateful
Same , my teacher is so bad
Best explanation of SWAPS I have ever seen
We need to bring this guy out of fucking retirement and make him a fucking national treasure
Mark Channel c
Cool swear words
I am studying for an exam right now, and this has come in really handy. I really could not understand the concept of interest rate swaps earlier from text books and you really explained it in such an easy manner. I am so stunned and genuinely happy that I now understand this concept. Thank you. Thank you so much for explaining it in such an easy to understand way🥰
This concept was real hard to grasp. This video made it look easy. You are a good teacher.
This is one of the best videos on SWAPs you could ever come across. Thank you for coming up with such a brilliant video Sir.
This man is a pedagogical wizard. Shame he stopped making videos.
Did he really stop?
Thanks Dustin!
@Dustin Suryadi Thank you for the info!!!
He's doing vids on killik and co's channel now.
follow his blog 'moneyweek.com'
You just explained one of the most complicated practice in finance in the easiest way possible. Great job!!
Better and clearer explanation than a whole 3 hr class with my professor
I can't say how appreciate I am. This video gives me the feeling that "that's what swap is about!!!" how amazing! Thank you so much.
This guy is for some reason hilarious, yet such a great teacher! thumbs up all day every day.
He is great. Why did he stopped making videos? How can we get him back to teaching.
this is brilliant content - I was never confident with explaining what swaps are and now I feel like I could confidently go into my interview to explain! thank you so much!!
I'm not even a native English speaker and this explanation is the best available on RUclips
He has explained a difficult and complicated topic in a simple, objective manner. Best explanation I have ever seen.
This is the best video on swaps that explains the basic concepts extremely well
My lecturer explained this and nobody understood anything but here everything is clear. Great job!
Why has no textbook ever thought to explain it this way? We spend hard-earned money buying books that intentionally obfuscate things and leave the reader more confused than they were before reading them.
Thanks so much Tim Bennett for making this rocket science of a concept feel like ABC. I must confess for a moment there I was checking the comment section expecting to see people who understood swaps screaming about how wrong his explanation was because, by Jove, there's no way this concept could be this simple. From the comments so far, I can now fully accept Tim's explanatory genius. Again, thanks Tim.
Actually I might do a basic currency swap soon. Caps floors and collars are interesting too but require some background knowledge about options (a cap is just a string of options, as is a floor, with a collar being the two in combination). Thanks for the suggestions. Tim.
A very good and clear explanation of an OTC swap. No long winded introductions simply concise and to the point.
Extremely well explained! I kept asking where the original loans were coming from to better understand why the two companies need to enter into a swap agreement. You're video is the only I could find that answers my question. Thank you!
i would have aced my economics if this guy thought me!
JeevS GOne Still fail your spelling test though
What a lucid and understandable explanation of a swap. Why did he stopped posting his tutorials and sharing his knowledge ? Anyway, my thanks to him.
This is the best explanation ever for newbie, if you know absolutely nothing about swap or are confused. He really explained it as you were a five year old which is something I wanted lol
Sir, I just learned the the Interest Swap and taught it to 7 colleagues through class room training. Once again Thanks a lot.
I have been assigned a new Project - Canara Bank Derivatives where the implementation is going on.
Your understanding way and constructing the sentences wisely helped to understand the concept/functionality.
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
You are AWESOME! I was looking over my boyfriend's shoulder and asked what a swap was and he didn't feel like explaining. So I watched this and now I'm talking to him about LIBOR and shit. THANK YOU
I came across this video while looking for a swap presentation to send to a lawyer friend to clue him in a little, whilst it is a very user friendly explanation, there are some fundamental and fairly crucial problems, particularly when you look at it from a practical stand point. Bare with me this may take a while!
This video has clarified swaps and relieved me of pre-exam stress and anxiety. thank you TIM
Man, i know only the basic of finance, but i think i understand most of the video. Thanks.
His teaching standard is GOLD!
Good comment - yes the swaps market is, in many ways, one enormous example of arbitrage (exploiting pricing anomalies).
I am an engineer undergraduate and just wanted to inform you that your new job is to teach me all the terms that are flying around in financial movies. Thank you for that, keep the good work up :)
This is MUCH more useful than my stupid CPA material, thanks you so much!!!!!!!
In my 4 years of business school this is the best display of teaching I have ever seen; this man should be a finance professor making six figures.
your explanation is really.. really much more clear than what the professor gave in the class... THANK YOU..!!
you can't get anything better than this tutorial anywhere.......
ravishankar
You kept me fully interested until the end. You enlightened me in a moment when you said it is financial magic.
It is the simplest and straight to the point IRS explanation I've ever found.
YOU ARE A.M.A.Z.I.N.G. saved my life preparing for the final exam!! this is the BEST explanation EVER!!!
You are probably the only reason I now have a better chance at passing my final on Tuesday.
nice presenation! Your speaking speed really help non-English speaker to understanding swap! Thank you
I spent three hours on my lecture notes but i still can't understand the concept of 'swap'. Your video helps me a lot. Thank you!!! :D
Thank you very much.I couldn't understand this for many time.But now it's crystal clear.Thanks again.You have made my day.
Thanks man. This video really helped me understand the basics of swaps. It even helped more than an hour of reading.
Learning for my state exams - Mr.Bennett you are saving me this week!
The most easiest explanation on swaps. Amazing
You make a strong difference to many. BEST TEACHER EVER!!! Thank you so much!
I think it helps when trying to understand this to consider things from the perspective of the swaps bank. It gets together with the companies, asks them what they are offered, and notices that the overall amount of interest for them to pay would be less if they were both to go for the rate they would prefer not to go for. This becomes obvious when you see that the total amount of interest paid to the banks when each company goes with its initial intention: 5M((libor for A) + (10% for B) = libor+10%), is greater than the amount for the opposite situation 5M((7% for A) + (libor+1 for B) = libor+8%). It sees that there is money to be saved. Therefore it then recommends that the companies pursue the borrowing option which is opposite to their intention with respect to banks A and B with the assurance that, through the swapping they'll do with the swaps bank, they will in fact end up paying a fixed or variable amount in accordance with their initial intention. Some of the saving will be kept by the companies, and the rest will be appropriated by the swaps bank.
The best Interset SWAP learning VIDEO ever.
Thanks a lot !! Your Explanation really cleared my idea of Swap, for a beginner like me. Few questions though :
1. What is Swaps Bank ?
2. What i read and thought that SWAP is a contract between two parties?
3. What if the L.I.B.O.R goes high? Isn't that a loss for Company A ?
Thanks!
You are right, company A is at the most risk right now.
You explained the hard finance concept in a so vivid and gentle way~~ I think I really got the business model of a swap bank
Making money by offering better financial deal to clients! It’s really the magic of finance
matschbirne - that's right, the whole thing depends on the counter parties not defaulting. Of course a bank can separately protect itself using credit derivatives (see my video on what is a credit default swap for example) but these also carry counterparty default risk!! So one bank going bust can have a massive ripple effect as we have seen....
0:51 As I type this on 02/11/2017, it only took the BOE another 6 and a bit years to finally do the rate hike haha.
Finally Got a teacher. Thanks
I can't possible grasp the fact that anyone could come up with this.. Really ingenious stuff!
After watching many videos on this topic, your explanation has made me finally have an understanding of this topic. Thanks a million Sir.😊
fair enough mate. As i said at the beginning, it does convey the theory well, and for what it's worth it's by far one of the better ones on youtube for doing that.
No one could have explained it better. The way you teach is amazing.
Thank you, sir :)
I wish I would've watched this during my Money and Banking Class last semester. It would've saved me a great big headache trying to piece this together off my professors lectures.
Hello Sir .
I find your study material so effective that no other tutor lecture suits me
Can u post a lecture of yours covering option strategies in detail like synthetic long call , covered call , butterfly ..
Waiting for your video eagerly ..
Thanks
I will be putting something up on basic currency swaps soon in light of the Fed's latest liquidity move. Tim.
Such a great video. Very simple to understand. Get yourself prepared for the upcoming CFA exam, guys. Good luck!
The best explanation on IR Swaps I've ever heard! Thanks!
fantastic, you really did a great job explaining this in such an understandable way, didnt even had to pauze or replay it. well done!
Thank you so much for making swaps so easy to learn!!! Thanks a lot!!! Better than going to my lectures actually!!!
this tutorial is amazing, way much better than the explanation of my teacher.... thank u very much MoneyWeeKvideos
This video is f.. brilliant. No one explained it better. Thanks.
i have been doing marketing throughout uni. but i have decided to apply for an internship at MS. so here i am. do not know what does equity swap means but now i do. thanks!
This guy explains these topics in a matter that is very easy to understand. Thank you sir.
wow...the way you made it look so easy is incredible. Thank you so much !!!!
Great sir ...this is yesterday of my exam ..💓💓💓💓💓😍
HI! Company A is paying Libor to Swaps Bank, and receiving 8% from them, and it's also paying 7% fix rate to Bank A. Thus, Company A net payment is: Libor - 8% +7% = Libor - 1%
Amazingly explained the concept of SWAPS using perfect example. Thanks :-)
Sir, you are amazing! i understood now what a swap is and believe it or not i spended over an hour trying to understand it and i couldn't, for that you have my appreciation and a like+fave.
Again thank you a lot kind sir.
Explained in a very concise and accurate manner...! Perfectly understood d swaps..
Thank you very much..!
Very Very Cleared explanation of SWAP
Brilliant ... your way of explanation is simply brilliant !!
Finance is a magic and this teacher is a magician. So much admire.
Thank you very much for explaining a swap. Was feeling very grateful for this video. Good job!
This really helped me study for my FRM exam tomorrow!
best swap tutorial on youtube
Very well explained. Thanks never understand swaps better than that.
I wish my teacher explained things like this instead of just reading out of the book. I wouldn't have to be here right before my exams
Thanks so much for the video... You saved my life in the final exam today.
Want to make money in the stock market, and do not know how, you just have to do a course in FOREX Trading to learn to invest,
not miss the opportunity only for this week is $ 1 (with this financial livertad achieved it already I do) look here facebook.com/EARN-MONEY-WITH-FOREX-1026630467434909/
What an educator you are, Sir!
Salute
Thanks for the explanation. Your videos are a great help. The way you explain and use explamples in your videos are so great. it makes such enjoyable to watch it and learnt it. Thank you so much.
thank you!!!! greatest and easiest explanation to understand in the entire internet!!!
Thanks a lot Tim ! Couldn't wrap my head around the concept, now I can !
This man is an excellent educator.
Very 1st time i understood about Swaps. Thanks
Best explanation for SWAPS! TYVM!
I'm learning a LOT from your videos - they're very clear - thanks!
I recently got a job in IT in an investment back as software engineer. I've watching all your video's and to be honest they are really useful and interesting. I had 0% knowledge of investment banking and within two days itself I am having a good idea as in what is actually going on.
I just wanted to make a request....Can you post a video explain the Trade Life Cycle as in how the trade actually work in systems, Front office and Middle office ecosystem etc.
Thank you soooo much
Thank you very much for you video, I learn much more from your vid than in my classroom.Please keep up the awesome works!!!
I 'salute' to those who can understand this branch of knowledge.
Very clearly illustrated. Love this fella.
borrow at the wrong rate from their banks is the key in understanding this concept
That was awesome! So clear cut! I am better prepared for my final now! Thank you :D
how straightforward and effective this video explains the principles .