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?¿
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✨
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.
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.
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!
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 😂
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?
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.
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?
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?
Why doesn't B give loans directly to C if they are already assuming the risk? Is A seen as more reputable or do they serve a customer acquisition role?
So, correct me if I`m wrong here. If I want to short the housing market. First, I will buy mortgage bonds. Then I go to an investment bank (or insurance company), and offer them monthly payments (premium) In return, if the homeowners fail to pay me, the invest bank will pay me. If the homeowners pay me on time, my deal with the investment bank is done. If I`m right so far, how exactly do I make more money on this transaction?
Now I just thought of how I can make money on that. I should sell all these insurance I have, to other banks, so that they can recover atleast some of the money (they were owed by home owners), they will get this back from the insurance companies. I could charge them more than what I paid for the CDS.
hey did you just said that in L.brother case that Credit swap was $200B are there and the insurance cant cover those as they are big debt, so why they ( insurance )take huge risk which they know that they cant paid it back if their parties are bankrupt.so in this way CDS are not working when the loss is huge.
and today goldman sachs alone holds 50 trillion worth of credit default swaps with the chinese property sector collapsing. good luck, everyone, this crash is going to be something else.
Get my 'Introduction to Asset Management' 70-Page career guide here: beacons.ai/afzalhussein
After years, I can finally say that I’ve understood the concept..
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?¿
genuinely the best explanation I found on the internet, what a legend you are
What I love about your videos is that they’re short and straight to the point .. keep up the good work
Hey! It was 4 minutes! Give me my 2 minutes back! However, still very helpful indeed. Thanks!!
Had to watch this in .05x to keep it stuck in my brains
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✨
Ive been obsessed with how the 08 crash happened and been watching videos like this to have a better understanding on what happened lmao.
thank you!!! applying for a credit analyst internship and this saved me
My lecturer just make everything so complicated hahaha, that's an easy explanation thanks
Credit default sawp in the context of SVB ... Cheers Mate!
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.
yes please!
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.
:)
@@AfzalHussein I would suggest the same.
@@aldairanselmo189 yes it's awesome
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.
Haha thanks!
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!
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 😂
Are there any other finance movies you would recommend??
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?
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.
I have seen countless videos on CDS etc. but I didn't fully understand till now haha, much appreciated bro!
😊👍🏽
Thank you. It was difficult for me to understand CDS until your video made it very clear.
Great explanation of CDSs. I appreciate you--All the way from Dallas, Texas, USA. 🙂
That was so simple and easy to get the base , Thank you 🙏🏿
Good video. Nice and straightforward. Thanks.
You are a wonderful human being, thank you for sharing your knowledge!
Thanks!
Really great yet simple explanation, great job🙌
Thanks!
Thank you for your clear explanation!
Excellent explanation, thank you!
Your explanations are very clear and to the point 👌
Crystal Clear! Keep shining Afzal 😎👌
🙌🏽🙌🏽
Showing The Big Short in an undergraduate investment class. Well explained here and will assign this to students. Thanks.
You have made me understand about finance in some way😩 thank you🙏🏽
Thank you do much, the moment I read the title I knew I would understand better with your explanation.
Loved it, Afzal.
Very helpful video; concise and explanatorily accurate.
Thanks!
These are brilliant videos mate!!
Made it very simple Explanation.
This explanation is beautiful
Haha, thanks!
very good explanation
Thanks!
Great explanation! Thanks!
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
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?
👍🏾👍🏾👍🏾👍🏾 After watching a couple of CDS videos yours was the most understandable. Thank you!
So well explained
Nice one bruv👌
excellent !
very good explanation
thank you
Succinctly explained, thank you
Thank you!! Can we request Options / Derivatives next !
I agree! Would be extremely useful.
The video is 4 minutes but he said 2 minutes Tuesday. Great video though; it was easily and well explained.
This was so so clear!!!
I love this format❤️
amazing explanation!
Thank you soo much...video was very much useful....
Hope to hear from you again.
Great Explanation, loving these weekly videos☝️
Well done. Thank you.
really helpful! thanks 👍🏼
Very useful info..Thank you 👍
Simply the best
Simple and plain ... thanks mate
I love these! Thanks for the vid.
Thanks for watching!
TRS please Afzal. It will be helpful.
great explaination
Do a vid on cfds please
Can you make a video of inflation please 👌
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?
Great video!! If the Borrower stops paying the debt, who stays with the real state - the Bank or the CDS owner?
Very nice video..
Easy to undertand👍
Why doesn't B give loans directly to C if they are already assuming the risk? Is A seen as more reputable or do they serve a customer acquisition role?
🔥 damn best explanation ever. thanks!
🙌🏽👊🏽
Love the video any chance of a video on the whole interview process at goldman
Great video!!!
Thank you
Thank you...
Thank you!
Brilliant!
You should do CDOs as well
It's funny you ask! Tune in next week 😉
Great breakdown but think the graph at 3:08 should read trillions instead of billions
1 billion in Europe is 1 trillion in US. Maybe that is the cause... not sure
great job
great video, but visualizations would make it awesome
Could you do a video on derivative instruments
thanks a lot !!
Can you explain in two minutes DCM(Debt Capital Markets)?? Thanks!
very helpful!
👊🏽
CDS seller (B) makes the determination that issuing CDS is a good bet. Do they have better information about the borrower C than the lender A has?
What was the reason of renaming the parties to A B and C, apart from making things more confusing?
What are your thoughts on the film, Margin Call? 🧐
legend
So, correct me if I`m wrong here.
If I want to short the housing market.
First, I will buy mortgage bonds.
Then I go to an investment bank (or insurance company), and offer them monthly payments (premium)
In return, if the homeowners fail to pay me, the invest bank will pay me.
If the homeowners pay me on time, my deal with the investment bank is done.
If I`m right so far, how exactly do I make more money on this transaction?
Now I just thought of how I can make money on that.
I should sell all these insurance I have, to other banks, so that they can recover atleast some of the money (they were owed by home owners), they will get this back from the insurance companies.
I could charge them more than what I paid for the CDS.
Does the CDS provide cover for the interest of the bank
what if none of the C's ever pay back? What is C cant pay A back and B pays for it so what penalty does C get?
Love it
So basically options for cdos?
hey did you just said that in L.brother case that Credit swap was $200B are there and the insurance cant cover those as they are big debt, so why they ( insurance )take huge risk which they know that they cant paid it back if their parties are bankrupt.so in this way CDS are not working when the loss is huge.
Yo when is simpley coming on android?
Where can I buy some ?
and today goldman sachs alone holds 50 trillion worth of credit default swaps with the chinese property sector collapsing. good luck, everyone, this crash is going to be something else.
Transfer agency
subbed,
👌
I think you should use some drawings to define example clearly. Otherwise explanation is too good.
🎉🎉🎉