Credit Default Swaps Explained in 2 Minutes in Basic English

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  • Опубліковано 19 чер 2024
  • Get my 'Introduction to Asset Management' 70-Page career guide here: beacons.ai/afzalhussein
    Welcome back to another episode of Two Minute Tuesday! Today I'm telling you everything you need to know about the infamous Credit Default Swap (CDS) which was heavily used and played a major role in the global financial crisis of 2007/2008. Through this video I hope to provide a high level understanding and insight into credit default swaps and their role in the world of finance and banking. Whether you're a student, graduate, professional or anyone else, I hope these videos are informative and easy to understand. Do consider subscribing to the channel if you haven't already, leave a like and a comment and let me know what which finance term, idea or concept you'd like me to explain in plain English in my next Two Minute Tuesday. Thanks!
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    ABOUT ME:
    Hey! I'm Afzal Hussein. I make videos on banking and finance, careers, productivity and lifestyle. I'm also building Simpley (a marketplace for career advice), and I teach on Skillshare. Before all of this I started my career working at an investment bank called Goldman Sachs. Hit the various links above to find out more about me. Thanks for passing by!
    #CreditDefaultSwap #CDS #Explainer

КОМЕНТАРІ • 237

  • @AfzalHussein
    @AfzalHussein  Рік тому +1

    Get my 'Introduction to Asset Management' 70-Page career guide here: beacons.ai/afzalhussein

  • @danieleokwara5210
    @danieleokwara5210 3 роки тому +40

    After years, I can finally say that I’ve understood the concept..

  • @davidabovian9437
    @davidabovian9437 3 роки тому +44

    The Big Short is easily my favorite finance-related movie of all time and I had to watch it multiple times to understand this concept 😂. Thanks for clearing it up Afzal!

    • @thetimemaster1475
      @thetimemaster1475 7 місяців тому

      The Big Short is your favorite finance movie of all time but it’s my favorite movie of all time (or at least one of them). I also had to watch it 10+ times 😂

    • @FBi_.
      @FBi_. 6 місяців тому

      Are there any other finance movies you would recommend??

    • @KP99
      @KP99 4 місяці тому

      I haven't watched The Big Short yet ..does it go into depth about these various financial products, or is it really just basic stuff for the general layman audience?

  • @nicolasd2079
    @nicolasd2079 3 роки тому +74

    Just watched The Big Short yesterday this video comes on time aha!

    • @zeeshaanmir4056
      @zeeshaanmir4056 3 роки тому +1

      I just watched it from reading your comment lol

    • @BertRussie
      @BertRussie 3 роки тому +5

      I am in the middle of watching it. Just came here to clarify so that I can gi back and understand everything 😅

    • @sandeepjacob6371
      @sandeepjacob6371 2 роки тому +1

      @@BertRussie same case here...lol

    • @alexngulube4530
      @alexngulube4530 2 роки тому +1

      The big short is the reason am here 😅😅🤣

    • @alien3143
      @alien3143 Рік тому

      I just started movie N came to know abt it so that I can understand mve better

  • @nzingaq
    @nzingaq Рік тому +2

    Came here because of the Credit Suisse story. Powerful explanation!

  • @monsieurx9381
    @monsieurx9381 3 роки тому +14

    After years of hearing the 2008 crisis with more or less accurate descriptions, you’ve made it very clear at the end of the video.
    Man thank you so much?¿

  • @ghazaalroy6475
    @ghazaalroy6475 Рік тому +2

    My lecturer just make everything so complicated hahaha, that's an easy explanation thanks

  • @rudyb403
    @rudyb403 2 роки тому +2

    What I love about your videos is that they’re short and straight to the point .. keep up the good work

  • @iluvcheese1216
    @iluvcheese1216 3 роки тому +5

    Im preparing for a law firm interview and was so confused by the term, so I spent ages finding the answer- little did I know I could’ve cleared it up in 2 mins by watching your video! You’ve just earned yourself a subscriber✨

  • @suchona99
    @suchona99 3 роки тому +3

    genuinely the best explanation I found on the internet, what a legend you are

  • @tomija13
    @tomija13 Рік тому +2

    I went through several articles to understand the principle, but it finally clicked with me in this video! Thank you!

  • @rohanroychowdhury6261
    @rohanroychowdhury6261 3 роки тому +3

    Mate, your lectures and videos helped me to ace my personal interviews and secure a seat in one of the most prestigious BSchools in my country.

  • @TheDocRitchie
    @TheDocRitchie 2 роки тому +2

    this is the most head explodingly difficult thing i am trying to comprehend right now so thanks for a little bit of light, brother!

  • @husanshermatov466
    @husanshermatov466 3 роки тому +2

    As always Afzal - great short sweet explanation! As I work in investment banking myself I can say that you are supporting the younger generation really well so when they apply for grad jobs they know what they are talking about during the interviews! I wish I had the chance to watch these kind of videos when I was applying to grad jobs and I had to learn all these stuff myself. Well done once again! Hope people are valuing your videos.

  • @marwanthe2oooth
    @marwanthe2oooth 2 роки тому +1

    God bless you my man, you stuck to your word and explained it simply. In 2 minutes you did what ~20 other UA-cam channels (that I visited) couldn't do.

  • @snapamericancandy_p3892
    @snapamericancandy_p3892 3 роки тому +1

    One of the best yters mashallah. certi cl u make me understand these concepts in a couple of mins

  • @ahmedgouda6951
    @ahmedgouda6951 3 роки тому +1

    Your explanations are very clear and to the point 👌

  • @beyondrationalboundaries3322
    @beyondrationalboundaries3322 3 роки тому

    Great Explanation, loving these weekly videos☝️

  • @sexiiliexi
    @sexiiliexi 3 роки тому +2

    Wow how many lectures I wasted time comprehending this concept that you just simplified in 2 minutes. Bless your soul 🙏🏽

    • @AfzalHussein
      @AfzalHussein  3 роки тому

      Haha, thanks for watching! 👍🏽

  • @karthikeyan2690
    @karthikeyan2690 Рік тому +1

    That was so simple and easy to get the base , Thank you 🙏🏿

  • @user-ew6rs1tm7z
    @user-ew6rs1tm7z Рік тому +1

    Had to watch this in .05x to keep it stuck in my brains

  • @matiassalazar5397
    @matiassalazar5397 2 роки тому +1

    Bro! You're a genius! I've finally understood. I can die happy now

  • @123meenasalih
    @123meenasalih Рік тому

    You have made me understand about finance in some way😩 thank you🙏🏽

  • @arrrhaitch4563
    @arrrhaitch4563 3 роки тому +1

    This was so so clear!!!

  • @aldairanselmo189
    @aldairanselmo189 3 роки тому

    Thank you do much, the moment I read the title I knew I would understand better with your explanation.

  • @glennpells9712
    @glennpells9712 Рік тому

    Good video. Nice and straightforward. Thanks.

  • @henrybenson911
    @henrybenson911 2 роки тому

    Very helpful, I just started as an apprentice at JP Morgan and I’m in the credit portfolio group team which we deal with CDS/XVA products

  • @AfzalHussein
    @AfzalHussein  3 роки тому +15

    Welcome back to another episode of Two Minute Tuesday! Today I'm telling you everything you need to know about the infamous Credit Default Swap (CDS) which was heavily used and played a major role in the global financial crisis of 2007/2008. Through this video I hope to provide a high level understanding and insight into credit default swaps and their role in the world of finance and banking. Whether you're a student, graduate, professional or anyone else, I hope these videos are informative and easy to understand. Do consider subscribing to the channel if you haven't already, leave a like and a comment and let me know what which finance term, idea or concept you'd like me to explain in plain English in my next Two Minute Tuesday. Thanks!

    • @TheDocRitchie
      @TheDocRitchie 2 роки тому

      i did it! I finally finished an article about CDS's (and CDO's) thanks to your videos. many many thanks.

    • @haggaiestonshempe7781
      @haggaiestonshempe7781 Рік тому

      Excellent summary, concise!

  • @LolaLeeTV
    @LolaLeeTV Рік тому

    Thank you. It was difficult for me to understand CDS until your video made it very clear.

  • @keramatpurtork8682
    @keramatpurtork8682 Рік тому

    Thank you for your clear explanation!

  • @04166561
    @04166561 3 роки тому +11

    please do industry reaction for episode 6 onward, I love your review for each episode and have to watch it before I jump on to the next one.

  • @julianamartinez99
    @julianamartinez99 Рік тому

    thank you!!! applying for a credit analyst internship and this saved me

  • @julianmundt138
    @julianmundt138 3 роки тому +1

    I love this format❤️

  • @jaystart8783
    @jaystart8783 3 роки тому

    Simple and plain ... thanks mate

  • @aanori
    @aanori 6 місяців тому

    Excellent explanation, thank you!

  • @beancountershome6560
    @beancountershome6560 Рік тому

    Loved it, Afzal.

  • @robertopereira7527
    @robertopereira7527 Рік тому

    Thank you for the lesson!

  • @K23T_autoservice
    @K23T_autoservice 2 роки тому

    👍🏾👍🏾👍🏾👍🏾 After watching a couple of CDS videos yours was the most understandable. Thank you!

  • @thriveinchange
    @thriveinchange 3 роки тому

    Great explanation! Thanks!

  • @deborahcunningham4110
    @deborahcunningham4110 2 роки тому +1

    You are a wonderful human being, thank you for sharing your knowledge!

  • @saibrungi
    @saibrungi 3 роки тому

    Thank you soo much...video was very much useful....

  • @bubbadj1
    @bubbadj1 2 роки тому

    Showing The Big Short in an undergraduate investment class. Well explained here and will assign this to students. Thanks.

  • @playerovgy
    @playerovgy Рік тому

    These are brilliant videos mate!!

  • @403MC2
    @403MC2 3 роки тому +21

    Afzal, your channel is so impressive. I have no doubt you will be incredibly successful. I'm a law student from Canada, and your videos are incredibly wide-ranging and informative. Mashaallah brother keep up the great work!

    • @AfzalHussein
      @AfzalHussein  3 роки тому +5

      Jazak'Allah khair bro! Thanks for the support :)

  • @cbdbotanicaltherapy
    @cbdbotanicaltherapy Рік тому

    Well done. Thank you.

  • @Luka-ek4cr
    @Luka-ek4cr 2 роки тому +1

    Very helpful video; concise and explanatorily accurate.

  • @CamsCampbell
    @CamsCampbell 2 роки тому +1

    🤓Perfectly explained. Now I can watch The Big Short again and have more of a clue about what's going on!

  • @jonwinder6622
    @jonwinder6622 Рік тому

    Ive been obsessed with how the 08 crash happened and been watching videos like this to have a better understanding on what happened lmao.

  • @jasonyoon4910
    @jasonyoon4910 2 роки тому +1

    Hey! It was 4 minutes! Give me my 2 minutes back! However, still very helpful indeed. Thanks!!

  • @adcat8473
    @adcat8473 2 роки тому

    So well explained

  • @colinhughes2045
    @colinhughes2045 Рік тому

    Very useful info..Thank you 👍

  • @williammarshall9475
    @williammarshall9475 3 роки тому +1

    Thanks for explaining!☺️

  • @AG-hu5jj
    @AG-hu5jj Рік тому +1

    Credit default sawp in the context of SVB ... Cheers Mate!

  • @bertwitherspoon4454
    @bertwitherspoon4454 Рік тому

    Great explanation of CDSs. I appreciate you--All the way from Dallas, Texas, USA. 🙂

  • @isadoracantonzahrrazuck7111

    really helpful! thanks 👍🏼

  • @janegrey6440
    @janegrey6440 Рік тому

    Well done explanation. Very succinct. 👍🏼

  • @phiaowo3999
    @phiaowo3999 Рік тому

    excellent !
    very good explanation
    thank you

  • @prashanthgurunath1703
    @prashanthgurunath1703 6 місяців тому +1

    Thank you for this bro 🎉

  • @abramordona1695
    @abramordona1695 3 роки тому +1

    Crystal Clear! Keep shining Afzal 😎👌

  • @olivialam3573
    @olivialam3573 2 роки тому

    amazing explanation!

  • @modernteenageinvestor
    @modernteenageinvestor 2 роки тому +2

    Really great yet simple explanation, great job🙌

  • @karens8364
    @karens8364 2 роки тому

    this explanation is awsome

  • @mwaakalwiindi1589
    @mwaakalwiindi1589 Рік тому

    Succinctly explained, thank you

  • @jaunmirza8246
    @jaunmirza8246 3 роки тому +1

    Great explanation

  • @angelboy2901
    @angelboy2901 3 роки тому

    best explaination without dragging it too long

  • @ZimeEdits
    @ZimeEdits 3 роки тому +1

    I love these! Thanks for the vid.

  • @crownfelicia6202
    @crownfelicia6202 2 роки тому +1

    Thank you ! this helped me so much

  • @singh2189
    @singh2189 2 роки тому

    Made it very simple Explanation.

  • @garimashreshth9941
    @garimashreshth9941 3 роки тому +6

    Informative video. Please make more such video. Your explanation to the technical is simple and relatable. it's treat to learn about advance finance terms here.

  • @mrigankomandal710
    @mrigankomandal710 2 роки тому +1

    Lovely and simple !

  • @Ahitoshit
    @Ahitoshit Рік тому

    This is a solid explanation! Reading about the terms in School Books always confuses me because of the language - but you do a great job of clarifying the concept of the financial mechanics. Maybe animations to the two minute Tuesdays is could help sell the point to Visual learners?

  • @ritaquinnley387
    @ritaquinnley387 2 роки тому

    Simply the best

  • @FBi_.
    @FBi_. 6 місяців тому +1

    Thanks for explaining this so well

  • @sergiosantanamorales2995
    @sergiosantanamorales2995 3 роки тому +1

    Great video!!!

  • @davida.johnson8936
    @davida.johnson8936 2 роки тому +1

    Awesome explanation! thanks.

  • @slamminjason
    @slamminjason Рік тому

    great explaination

  • @littlevivi
    @littlevivi 3 роки тому

    Great series!

  • @digimillzlegawd5109
    @digimillzlegawd5109 2 роки тому +1

    reading the big short by michael lewis and I know the book explained it, but I couldnt comprehend. Plus it kept referencing CDS' so this makes it easier going forward.

  • @seransathiyamoorthy8561
    @seransathiyamoorthy8561 3 роки тому +1

    I have seen countless videos on CDS etc. but I didn't fully understand till now haha, much appreciated bro!

  • @alterego2624
    @alterego2624 3 роки тому +2

    Hey, nice series of short videos. I enjoy it a lot.
    Sometimes it could be helpful to show graphically the things you are explaining. Especially when there are a lot of parties that interconnect like in this case. Either way, thanks :)

  • @cyclops.stonks
    @cyclops.stonks 3 роки тому +1

    This explanation is beautiful

  • @isassetuba
    @isassetuba 3 роки тому +6

    Perfect 👌 explanation

  • @dayyankhan813
    @dayyankhan813 3 роки тому

    Informative video to watch before you watch the Big Short

  • @BrendanPramjee
    @BrendanPramjee Рік тому +1

    Nice one bruv👌

  • @mallen8501
    @mallen8501 Рік тому

    good explanation...

  • @isiisi6797
    @isiisi6797 3 роки тому +2

    Great video and superb explanation! I also enjoy the fact that your making your videos more dynamic (as dynamic as it can get when it comes to finance😅). It personally really helps me to stay engaged with your videos, in comparison to some of your older vids

  • @frankrosato
    @frankrosato 2 роки тому

    Brilliant!

  • @akshayprabhakant819
    @akshayprabhakant819 3 роки тому

    thanks a lot !!

  • @kennethbrown3893
    @kennethbrown3893 2 роки тому

    great job

  • @Doulingo1478
    @Doulingo1478 11 місяців тому

    Easy to undertand👍

  • @charlielonergan8639
    @charlielonergan8639 3 роки тому +1

    Love the video any chance of a video on the whole interview process at goldman

  • @thetradingfloorinstituteby9453
    @thetradingfloorinstituteby9453 2 роки тому +1

    very good explanation

  • @virgenthevirgo
    @virgenthevirgo 3 роки тому +1

    Wow, your explanation was clear and concise, it’s appreciated.
    So just to ensure my understanding: Lehman Brothers was “B”, unable to cover “A” for “C” defaulting, yes?

  • @dansteryoo
    @dansteryoo 3 роки тому +1

    🔥 damn best explanation ever. thanks!

  • @kisstai922
    @kisstai922 Рік тому

    Thank you

  • @dxn3365
    @dxn3365 3 роки тому +1

    very helpful!

  • @narendrabollu3844
    @narendrabollu3844 2 роки тому

    Thanks bro

  • @yunusnasir1961
    @yunusnasir1961 3 роки тому +1

    Thank you...

  • @salemy300
    @salemy300 3 роки тому +1

    Thank you!! Can we request Options / Derivatives next !

    • @maryamkhan351
      @maryamkhan351 3 роки тому

      I agree! Would be extremely useful.

  • @monaoconnell5650
    @monaoconnell5650 Рік тому

    Hope to hear from you again.