Credit default swaps | Finance & Capital Markets | Khan Academy
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- Опубліковано 27 вер 2008
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Introduction to credit default swaps. Created by Sal Khan.
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"Hey wait, wait, wait, AIG. You only have 100 billion dollars in assets, but you have insured 1 trillion dollars of other people's debts!"
Lmao I laughed so hard at this.
Wasn't as funny in 2008...
In the financial sector as a buyer do your research don’t go with the flow and do your own numbers and make your decision because somehow the lawyers found a way to diversify liability and at the end no one is at fault it is part of the game unfortunately
@@utubewatcher806 By his example AIG is leveraged at 10:1, but back in 2008 some banks were leveraged 30:1. Talk about insanity!!!
There's something shady going on...
fyi only...How MultiBank Group evolved into one of the largest online financial derivatives l.linklyhq.com/l/2JS #banking #finance #derivatives
came right here after watching big short
+Abhishek Rattan all over your keyboard??
+General Sarasota hahaha...... nah not literally :)
same bro
Thats a nice shirt. Do they make it for men?
Loool same
Not for nothing this is great. I needed this as I'm reading "The Big Short"
+Durandisse84 Durandisse I too came from The Big Shor
+Durandisse84 Durandisse Me 3
+Durandisse84 Durandisse same here
Same here!
Same here lol
This video was published at the perfect time
love how you dont waste time with unnecessary prologue and get right to the point!!
2020here and still watching this right after watching big short. Gives me straight information regarding the principle of financial fiasco in 2008.
watching this in 2022 and was watching the big short but I left it in the middle as I was confused so I ended up here xd I realised this vid was 11 years old that's why its in 240p lol
Clearly understandable, very clear & precise! Love it! Just realized it was posted 15 yrs ago... truly an heritage!
Saw the Big Short, now I'm reading the book, and I needed this video to understand it! Thanks Sal!
how ironic this was uploaded right in the midst of the housing market crash that's why im here
I'm doing research for an author and have needed to learn the entire sphere of the financial lexicon from scratch. This video is the best explanation on CDS's BY FAR that I have seen
This presentation was the most wonderful I have seen! so simple to understand. Thanks a lot!!!
actually i was scare to learn about CDS but the way you explained it was so easy to understand, thanks a million.KEEP THEM COMING we are paying close attention
It's nice that this video was published right when the Financial Crisis happened 11 years ago.
Just watched "The big short", this is answered my question. Thank you!
This dude saved me in college for chemistry, Microbio etc. Is there no limits to his brain!?
Well who the hell is rating Moody's ability to Rate!!!
+Durandisse84 Durandisse No one. Same with Standard and Poor's and Fitch.
Shareholders
Moody’s
You are as an investor, as a free-market participant. You are supposed to be a sane person - you either take into consideration Moody rating or disregard it. You are a private person making a decision with you money. When you make money it is your private profit, when you lose money it is your private loss. What is important that if something goes under, government and the FED are not supposed to step in and save your private losses with the taxes or inflation money.
The US SEC in the US, FCA in UK, SEBI in India; basically your national securities regulator.
Today I “got” The Big Short! 😍
Love you man... Subscribed
Thank you. Explained in a way I can understand how all this works.
Sal....u are BRILLIANT! This was so clear. I totally understand CDS now. I have searched on the net for examples of what the heck they are...and you explained it so clearly here. Right...now onto the next video (I've watched about 5 today - they are addictive!)
Absolutely love the khanacademy. Just when I though derivatives exam seemed pretty impossible, it all of a sudden all makes sense. God bless this lectures ;) Can you come and teach at our University?
Sal,
You are so amazing! Thanks for making it easy to understand!
--ExcelIsFun
remember 13 years ago when people would sign off their youtube comments?
@@onion7568 : ) : ) : ) : ) : )
Wish these old videos can be enhanced of Quality. 14 years later still helping everyone. Thank you guys.
Great explanation. Thanks for freaking me out.
I have been in the fin markets since '73. I traded since 1987 in total OBIs so I got my scars. I have tried to explain it in layman's terms to my friends, found I had to back track often (and lost them in the story) but so far your C-D-1 made it clear to them. I will hit them tonite with C-D-2. Thanks for taking the work out of my hands.
Brilliant stuff. had been trying to find reading material on this but kept getting consfused. this is so good! thanks!
this is great. it totally help me to understand the credit default swaps.
@Khan Academy: this is exactly the graphic resumy I was looking for CDS understanding! ;)
Learning finance from you makes it very easy. Thank you sir🙏
This guy is great in teaching us these diffucult subject. Awesome!
What a great video explaining what I already knew but couldn't diagram out, thank you very much Sal, would love to be able to share this video on our UA-cam channel
Thanks for this. Great explanation!!
Thank you so much!!!! Tomorrow I am writing a test and I didn´t get the whole thing about Credit Default Swaps... but now, it´s clear!!! Thanks!!!
I was surprised this video was made 13 years ago. My curiosity started to be solved thanks to that video
thank you! you made it so easy!
I thought this video was great. Had no idea how CDS works but now I do. On top of that I also understand the massive risk with this! Thanks so much
That was great. Thanks for the vid!
Lol this is a productive day for me. First the awesome Matt Damon narrated documentary, Inside Job, the the big short and then these vids. I love knowledge. ;)
thanks for making this so simple !
Excellent! I never truly understood CDS's before this video.
outstanding!!!
Thanks Sal!!!
Great work on this video. You make everything so easy to understand.
Great job! Since, now even Greenspan admits that, markets are not self regulating. Who should we look to to set rules and regulations to govern these financial insturments?
Another excellent, simplified explanation. I ask myself sometimes how moody's can hold such incredible power of companies and underlying securities.
Credit default swaps? More like "C'mon, this video rocks!" Thanks for another banger.
thanks for this tutorial !
I have started to do research into how the banking/financial system operates & as soon as I came across the point if CDS's I felt like I was missing something - because it made very little common sense !
What I am seeing though, is that these systems are not based on common sense and what is best for all but rather what makes money for specific parties for limited amounts of time - no self-responsibility, no concern for the impact on others ! WTF?!
These videos are amazing. There's room for improvement in the aesthetics but other than that they're very eye opening. Thank you for sharing this knowledge for free.
Backhanded compliment!
Amazing clarification. Thank you very much for creating this.
I am so angry at those Insurance Companies!
Best explanation hands down. Thank you
EXCELLENT JOB!
this is how this stuff should be explained. dumbed without financial jargon thats meaningless to the layman. bravo.
I didn't know that Khan Academy was this old.
Khan academy is even older than that !
you make me understand the world man. thank you
Awesome....Ive been trying to understand this and couldnt find any videos that made sense to me, but this video made sense. thanks
Credit Suisse CDS situation has me watching this.
9:54 "you get insurance, you get insurance, everyone gets insurance!!!!!!"
thanks, now I can get back to watching The Big Short and actually understand it.
I like how you convey the context without exploiting their nastiness
Wow, this helps a lot. This makes a lot more sense now.
Excellent video, very clear now on what they are - I will watch your other videos! Thanks.
Fabulously explained. Thanks
Very useful tutorial. Clear and easy to understand. Keep it going.
I love your videos. Very helpful!
Thank you very much for this excellent explanation.
I'll have to ask my wife :) I think she'd prefer that I stick to recording videos.
Your explanations are very interesting, pls keep on
Im just watching the big short right now, paused it to come here, thanks for making me feel like im not trying to read hieroglyphics!
You are one of the best teachers in the world
"Pension fund.. Pension Fund.." love it!
Nice explanation! It was easy to understand.
thanks so much. this is such a clear tutorial on what a CDS is..
Thanks for the upload
Unreal videos. Good work!
really clear and useful thank you
Perfect !!!
watching [the big short] now. good lecture.
Best lessons ever!
Beautiful explanation
I love and hate how complicated the financial world is
Aged like fine wine
You explain it so well
Thank you soooo much!!! I have a test tomorrow and this was the one thing I just could not get. I was so confused! (@,@)
Watch this years ago. But, this video is gonna get popular again in 9 month to a year
very helpful video.. help me finishing my term report. thank you ^_^
Great video. Well explained..
"Let's say I'm a pension fund"
What the fuck is a pension fund?
First sentence and I'm already lost
banana aya playa just a fund that invests peoples pension money
Me watching this video after the US Bonds Treasury deranks from AAA to AA+
Thanks dude much appreciated
Thank you so much for that. I'm a dummy so I didn't get anything from wikipedia or investopedia. But your video cleared it in once. Thanks a lot!
nice man!
Holy shit, from 6:45 to 7:10 Nails it all together guys.... but you gotta be patient and watch from the begining
You are a good teacher my friend
If that is the structure, if I am Corp A or B with a low rating, I would just default entirely because I know that someone’s backing me up in case I default lol. If that’s the case, does it shift the liability from Pension fund to AIG?
thank you !
Thanks Sal for your work, but i have a question
Why don’t AIG buy way out of the money put options with the premium that they collect it to insure the transaction, then the debt (in theory) secured.
imf/nato wealth theft taxation currency is an amazing subject! Article 1 Section 10
the fact that this was posted in 2008, epic
so a credit default swap is an agreement/contract? and in the example used in this video the agreement is 10 years in this case so after 10 years the contract wears off? or is a credit default swap a product? is it an agreement or product? meaning if its a product, someone buys a credit default swap, can they sell it later on? lol
Excellent explanation
Khan the man!
After it collapses just remember to rince and repeat like the JIRMACK bottle says.
So were these funds limited by the rating companies and their ratings, or were they limited by basel II ? which one was the bigger factor in why they sought after the swaps
awesome thanks!