Credit default swaps (CDS) intro | Finance & Capital Markets | Khan Academy
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- Опубліковано 19 лип 2011
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Introduction to credit default swaps and why they can be dangerous. Created by Sal Khan.
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Thanks for another clear explanation.
*Knowledge is power !*
Great video!
Such a clear explanation, thank you!
nick_98
You are welcome.Do mail me if u face problems
Hey, Thanks for the help. CDS are now at an all time high. Never before has it been like this. It is all falling apart. Best to understand what is happening so we can best prepare.
are this video and the one about CDOs inspired by a reading of Michael Lewis' The Big Short? i read it in the spring and half the book seemed to be either "credit default swaps" or "CDOs"
Nice video! Was able to understand the concept!!
sal.....do vid on quantum mechanics and light.......
Well isnt this how the recession of 2008-09 started. AIG selling CDS on home mortgages by changing their credit ratings ? As long as the payments on loan was happening. The pension fund kept on receiving interest. The moment the loan payments were defaulted. Majority of problem started happening.
@SalsaTiger83 please explain the value in terms of the so called Global Financial Crisis
A lot like carbon trading :)
you said that u gave $1B to company A for 10% interest a year, but u havent said for how long, if its for 10 years it wouldn't make any sense, should it be more than 10 years obligation?
@DavidAKZ please reframe that request. I don't assume you think that a system that works extremely well must never fail sometimes.... If you mean where the value added of financial markets as a whole lies, try to experiment with the "gambler's ruin" idea, ideally with Monte Carlo simulations and learn why accurate risk assessment is crucial for even the most basic growth curves.
@mnmmoose14 yes
@trexx32 well you have to borrow and be a gambler. Please do not try to work and save for a living
Feels incomplete. Doesn't convey the larger picture.
This AIG stuff sounds like a Bernie Madoff scheme.
@mnmmoose14 known as financial weapons of mass destruction
@trublu97 Be ready in a minute
"...Minus the one percent"
From your mouth to the will of the people!
Why repeat this topic?shorter vid?
first
@DavidAKZ You're arguments are very fuzzy, care to elaborate or be more specific? Financial prices are random walks. And yes, price doubling because of randomly changing public information of basic supply and demand fundamentals is quite possible, especially if you factor in complex systems theory. I don't disagree, markets have to be regulated a lot more, but people just don't understand. You apply hate and ignorance to a problem that needs deeper understanding.
@SalsaTiger83 I'm not sure the quantification of risk is important to criminals.
Greenspan Admission
watch?v=731G71Sahok&feature=channel_video_title
isnt this partly why the economy sucks?
Who's here in 2023
@SalsaTiger83 in financialised futures markets (agriculture for example) where you can borrow an infinite supply of $ @ 0.25% - risk management is for peasants. Do you think the price of wheat has doubled in a year because of supply and demand fundamentals ?
The Wicked Witch Is Nervous (Google Blythe Masters)
watch?v=Lq0bAOVaQwQ&feature=related
@etzel33 +1