Simple Talk: Investment Bond Interest Rate to Market Value in 4 minutes👍👌 I had never heard of Silicon Valley Bank before last week. Wow, it's been awhile since I looked at the banks.
I think there's a bit missing here about how SVB sold the bonds to fund customer withdrawals and then had a shortfall of $1.75 billion for which they attempted to raise capital through a share sale which spooked investors and customers, leading to a declining share price and eventual run on the bank. The reason for the heavy customer withdrawals was that the majority of SVB's customers were tech firms that are cash-light right now due to a lack of VC funding and as such pulled some money out of SVB to fund their operations.
Hi Afzal, Thank you for making this short video it is very insightful. Would be appreciate if you can make a video on inverse relationships between bond price and yield. Thanks!
Also, you talk about people making deposit to a bank and bank investing those deposits. That is a commercial bank. So what exactly is an investment bank, if commercial banks invest too?
Could you make a video about different qualifications/licenses needed for different roles in banking? So specific qualifications to be an analyst or a trader etc.
What happens to credit default swaps on credit suisse . For 10 million how much premium was paid. If someone would have shorted AT10 bonds what is the CDS amount on it for premium.
Can we discuss here: bond is fixed income securities it was may 2-3 times I've bought government bond I've got premium for buying them earlier, and got principal and interest after maturity date. Is it at all possible to sell bond prior to maturity date ? At my understanding maximum what I at risk here is interest, cause I should regain principal anyway?
Quick question Afzal, I'm new in the sector of finance but one thing I didn't understand, why from the beginning, they didn't diversified their portfolio in order to avoid such issue
That´s the real question everyone is doing, basically poor risk management, lack of oversight and aggressive banking strategies for short-term gains, it´s my guess.
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy 😊I have been earning $ 60,000 returns from my $9,000 investment every 12days.
Actually I trade on a platform, with assistance from their top *ex pert* Ray Dalio is my professional assistant, I have been trading with him for 8 months now.... I've really made a lot from he's strategies in trading
Mr Ray Dalio is the right person to start trading cryptocurrency with.. he knows he's way around the crypto world.. he has been helping me increase my investment every day for over months..
According to The Indian Express report, the decline of Silicon Valley Bank (SVB) Financial Group can be traced to a sequence of events. The US Federal Reserve raised interest rates, leading some SVB clients to face a cash crunch. Despite the recent crypto pull back, I think crypto currency is quite profitable and lucrative than this so called bank that ran away with our money. I’m absolutely glad earning 27 percent weekly profit with the help of an experienced platform who’s method are top notch and profitable.You can give them a trial and see for yourself
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Bro, you’re top tier. The way you explain this in such basic term is a skills, I think even my mum would get it haha. Thanks for this.
Lol thanks!
Thank you, those 4 minutes were more clear than all the medias I've read these last days. 👍
💪🏽💪🏽
Simple Talk: Investment Bond Interest Rate to Market Value in 4 minutes👍👌 I had never heard of Silicon Valley Bank before last week. Wow, it's been awhile since I looked at the banks.
💪🏽
Bond/interest rate video would be great!
👍🏽
Very Crisp and deeply explained
Thanks!
@@AfzalHussein hey man what’s the song you used for the background?
As always
I think there's a bit missing here about how SVB sold the bonds to fund customer withdrawals and then had a shortfall of $1.75 billion for which they attempted to raise capital through a share sale which spooked investors and customers, leading to a declining share price and eventual run on the bank. The reason for the heavy customer withdrawals was that the majority of SVB's customers were tech firms that are cash-light right now due to a lack of VC funding and as such pulled some money out of SVB to fund their operations.
can we have one on Credit Suisse next please? thank you!!!
👍🏽
Thank you for explaining it! You made it so easy to understand for someone who has 0 knowledge in finance.
You’re absolutely right
Definitely something I'd ask about when interviewing candidates
👊🏽
As an emolyee of SVB you have explained what happend very well.
🙏🏽🙏🏽
Great video! Excellent communication.
so well explained!
Thanks!
I'm taking Finance class, and understand certain concepts - however, this video was extremely helpful! Thank you so much!
Thank you bro i fully understand your explanation.
I have a mid-term exam tomorrow related to bank runs and your video really helped me a lot ! thanks for explaining this clearly the situation !
Good luck!
@@AfzalHussein It went well ! thank you 😂
Good to hear! 💪🏽
Awesome work
Thanks!
@@AfzalHussein My pleasure!
An explainer vid on bond price / yield would be great!
We asked and he delivered 💯
💪🏽
Great, simple explanation!
You’re a life saver men...
Mad ! We’ll explained
👊🏽
Great vid Afzal, would love more breakdowns of finance industry news
Thanks!
A fantastic summary!
Thanks!
Nicely Explained 👍
Thanks!
Always clear cut!
My guy 💪🏽
Thank you for this so much
Pleasure!
As always awesome. thanks Afzal.
Thanks!
Yes! Please make a video on the inverse relationship between bond prices and yield. It would be very helpful. Thanks!
Amazing man.. U nailed it. Squared the circle wth such an ease👏
Thanks bro ❤️
great vid bro
Thanks!
Hi Afzal,
Thank you for making this short video it is very insightful.
Would be appreciate if you can make a video on inverse relationships between bond price and yield.
Thanks!
Thanks! Added to the list 👍🏽
Top video, thanks for making financial news and knowledge accessible for us all.
Also, you talk about people making deposit to a bank and bank investing those deposits. That is a commercial bank. So what exactly is an investment bank, if commercial banks invest too?
Could you make a video about different qualifications/licenses needed for different roles in banking? So specific qualifications to be an analyst or a trader etc.
Thank you 💯‼️
always useful! Love your videos a lot!
I found the video truly insightful and informative! Do you have videos regarding how bonds, mortgage-backed securities (MBS) work as well?
What happens to credit default swaps on credit suisse . For 10 million how much premium was paid. If someone would have shorted AT10 bonds what is the CDS amount on it for premium.
Awesome!
Can we discuss here: bond is fixed income securities it was may 2-3 times I've bought government bond I've got premium for buying them earlier, and got principal and interest after maturity date. Is it at all possible to sell bond prior to maturity date ? At my understanding maximum what I at risk here is interest, cause I should regain principal anyway?
Is true problem here inappropriate managerial actions ? why you need to sell bonds before maturity date - o take other weird actions ?
I am on 14th day with 5 Maalas day, I feel something is already brewing. I’m thinking to bump it to 8 maalas a day
Quick question Afzal, I'm new in the sector of finance but one thing I didn't understand, why from the beginning, they didn't diversified their portfolio in order to avoid such issue
That´s the real question everyone is doing, basically poor risk management, lack of oversight and aggressive banking strategies for short-term gains, it´s my guess.
Hey man, great video! What do you mean by the US government stepped in?
Why not prevent a bank run by simply allowing banks to only invest time deposits, that forbid withdrawals for a certain period of time?
Amazing video and thank you for breaking it down!! Despite the economic downturn, I'm so happy 😊I have been earning $ 60,000 returns from my $9,000 investment every 12days.
Wow I'm just shocked you mentioned expert Jed thought I'm the only one trading with him
Actually I trade on a platform, with assistance from their top *ex pert* Ray Dalio is my professional assistant, I have been trading with him for 8 months now.... I've really made a lot from he's strategies in trading
Mr Ray Dalio is the right person to start trading cryptocurrency with.. he knows he's way around the crypto world.. he has been helping me increase my investment every day for over months..
That's 100% true please how do I start trading with him?
Thank you for this. Will definitely reach out to him now. Thanks again
According to The Indian Express report, the decline of Silicon Valley Bank (SVB) Financial Group can be traced to a sequence of events. The US Federal Reserve raised interest rates, leading some SVB clients to face a cash crunch.
Despite the recent crypto pull back, I think crypto currency is quite profitable and lucrative than this so called bank that ran away with our money.
I’m absolutely glad earning 27 percent weekly profit with the help of an experienced platform who’s method are top notch and profitable.You can give them a trial and see for yourself