What is a swap? - MoneyWeek Investment Tutorials

Поділитися
Вставка
  • Опубліковано 2 чер 2011
  • Tim Bennett explains how an interest rate swap works - and the implications for investors.
    ---
    MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors.
    In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.

КОМЕНТАРІ • 653

  • @kortyEdna825
    @kortyEdna825 Місяць тому +447

    I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

    • @carssimplified2195
      @carssimplified2195 Місяць тому +2

      True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

    • @brucemichelle5689.
      @brucemichelle5689. Місяць тому +1

      It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io Місяць тому +1

      My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

    • @brucemichelle5689.
      @brucemichelle5689. Місяць тому

      There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

    • @PatrickFitzgerald-cx6io
      @PatrickFitzgerald-cx6io Місяць тому +1

      Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

  • @roydenpereira5726
    @roydenpereira5726 7 років тому +614

    To explain something like this in a way that someone new can understand is really admirable.

  • @akhilesh718
    @akhilesh718 9 років тому +133

    Best explanation of SWAPS I have ever seen

  • @AlzubairAlsenani
    @AlzubairAlsenani 5 років тому +10

    I watched a 2 hours lecture twice just to know and understand how swap works, but I got nothing. I watched this 15 minutes video only once and I got the whole idea. Very grateful

  • @markchannel9962
    @markchannel9962 8 років тому +145

    We need to bring this guy out of fucking retirement and make him a fucking national treasure

  • @JoeBlo2
    @JoeBlo2 8 років тому +276

    This man is a pedagogical wizard. Shame he stopped making videos.

    • @markizmendez6431
      @markizmendez6431 6 років тому +2

      Did he really stop?

    • @fahadus
      @fahadus 6 років тому +1

      Thanks Dustin!

    • @rachnana9904
      @rachnana9904 5 років тому

      @Dustin Suryadi Thank you for the info!!!

    • @bassmanjordan1139
      @bassmanjordan1139 5 років тому +10

      He's doing vids on killik and co's channel now.

    • @ronj5407
      @ronj5407 3 роки тому

      follow his blog 'moneyweek.com'

  • @abdulnoahmansaray383
    @abdulnoahmansaray383 7 років тому +35

    This concept was real hard to grasp. This video made it look easy. You are a good teacher.

  • @winsterrox5913
    @winsterrox5913 4 роки тому +15

    I am studying for an exam right now, and this has come in really handy. I really could not understand the concept of interest rate swaps earlier from text books and you really explained it in such an easy manner. I am so stunned and genuinely happy that I now understand this concept. Thank you. Thank you so much for explaining it in such an easy to understand way🥰

  • @ronj5407
    @ronj5407 3 роки тому +9

    You just explained one of the most complicated practice in finance in the easiest way possible. Great job!!

  • @riddhikulkarni1802
    @riddhikulkarni1802 8 місяців тому +2

    This is one of the best videos on SWAPs you could ever come across. Thank you for coming up with such a brilliant video Sir.

  • @sharonpan9714
    @sharonpan9714 7 років тому +4

    I can't say how appreciate I am. This video gives me the feeling that "that's what swap is about!!!" how amazing! Thank you so much.

  • @PRiiSCiiLLA8
    @PRiiSCiiLLA8 3 роки тому +5

    this is brilliant content - I was never confident with explaining what swaps are and now I feel like I could confidently go into my interview to explain! thank you so much!!

  • @MoneyWeekVideos
    @MoneyWeekVideos  13 років тому

    Tommas099 - thanks for your comments. In fairness the example is designed to show a beginner the basic principles of a swap. All my numbers show is that a swaps bank can take advantage of the fact that different firms are able to borrow on different terms - my example is 100% theoretically sound but I accept the figures used are (quite deliberately) unrealistic in the I/R swaps market as I wanted to keep the basic principles as clear as possible. Tim.

  • @felixlagemann8109
    @felixlagemann8109 8 років тому +13

    This guy is for some reason hilarious, yet such a great teacher! thumbs up all day every day.

  • @chachachalek
    @chachachalek 7 місяців тому +1

    Better and clearer explanation than a whole 3 hr class with my professor

  • @romanarashid5590
    @romanarashid5590 8 років тому +3

    Thank you very much.I couldn't understand this for many time.But now it's crystal clear.Thanks again.You have made my day.

  • @vanessabratosin6497
    @vanessabratosin6497 10 років тому

    The best explanation on IR Swaps I've ever heard! Thanks!

  • @MrSupernova111
    @MrSupernova111 6 років тому +2

    Extremely well explained! I kept asking where the original loans were coming from to better understand why the two companies need to enter into a swap agreement. You're video is the only I could find that answers my question. Thank you!

  • @g1kluang
    @g1kluang 9 років тому +75

    i would have aced my economics if this guy thought me!

    • @KingTheRat
      @KingTheRat 9 років тому +64

      JeevS GOne Still fail your spelling test though

  • @eraniklihsuk
    @eraniklihsuk 2 роки тому +1

    He has explained a difficult and complicated topic in a simple, objective manner. Best explanation I have ever seen.

  • @siddharthmudaliar9187
    @siddharthmudaliar9187 7 років тому +1

    Sir, I just learned the the Interest Swap and taught it to 7 colleagues through class room training. Once again Thanks a lot.
    I have been assigned a new Project - Canara Bank Derivatives where the implementation is going on.
    Your understanding way and constructing the sentences wisely helped to understand the concept/functionality.

  • @Chloe94169
    @Chloe94169 6 років тому +1

    YOU ARE A.M.A.Z.I.N.G. saved my life preparing for the final exam!! this is the BEST explanation EVER!!!

  • @nalin7863
    @nalin7863 6 років тому

    No one could have explained it better. The way you teach is amazing.
    Thank you, sir :)

  • @ripunjaya
    @ripunjaya 11 років тому +1

    This is the best video on swaps that explains the basic concepts extremely well

  • @FHIPrincePeter
    @FHIPrincePeter 10 років тому +2

    A very good and clear explanation of an OTC swap. No long winded introductions simply concise and to the point.

  • @mutlugundiler4458
    @mutlugundiler4458 8 років тому +40

    He is great. Why did he stopped making videos? How can we get him back to teaching.

  • @lynnn9154
    @lynnn9154 5 років тому +2

    Best explanation for SWAPS! TYVM!

  • @mthokozisimbambo2831
    @mthokozisimbambo2831 3 роки тому

    This video has clarified swaps and relieved me of pre-exam stress and anxiety. thank you TIM

  • @dijital.binali
    @dijital.binali 11 років тому +1

    Thanks man. This video really helped me understand the basics of swaps. It even helped more than an hour of reading.

  • @preetishgungabissoon1761
    @preetishgungabissoon1761 3 роки тому

    My lecturer explained this and nobody understood anything but here everything is clear. Great job!

  • @tramdhan111
    @tramdhan111 9 років тому +1

    your explanation is really.. really much more clear than what the professor gave in the class... THANK YOU..!!

  • @Ateelol
    @Ateelol 10 років тому

    I am an engineer undergraduate and just wanted to inform you that your new job is to teach me all the terms that are flying around in financial movies. Thank you for that, keep the good work up :)

  • @Davi_uk
    @Davi_uk 8 років тому +2

    You make a strong difference to many. BEST TEACHER EVER!!! Thank you so much!

  • @yves5445
    @yves5445 Рік тому

    fantastic, you really did a great job explaining this in such an understandable way, didnt even had to pauze or replay it. well done!

  • @liujasmine8392
    @liujasmine8392 4 роки тому

    You explained the hard finance concept in a so vivid and gentle way~~ I think I really got the business model of a swap bank
    Making money by offering better financial deal to clients! It’s really the magic of finance

  • @siddharthmudaliar9187
    @siddharthmudaliar9187 7 років тому

    The best Interset SWAP learning VIDEO ever.

  • @marloncampbell4537
    @marloncampbell4537 Рік тому

    After watching many videos on this topic, your explanation has made me finally have an understanding of this topic. Thanks a million Sir.😊

  • @yitingjin2354
    @yitingjin2354 7 років тому +2

    Thank you so much for making swaps so easy to learn!!! Thanks a lot!!! Better than going to my lectures actually!!!

  • @melanies2849
    @melanies2849 9 років тому +1

    That was awesome! So clear cut! I am better prepared for my final now! Thank you :D

  • @GiteshBajaj
    @GiteshBajaj 9 років тому

    This video is great...
    it explains swaps very clearly....
    THANKS

  • @wenjessi
    @wenjessi 5 років тому

    Finally understand “swap” 😀 Thanks!

  • @Alfy47
    @Alfy47 7 років тому +2

    What a lucid and understandable explanation of a swap. Why did he stopped posting his tutorials and sharing his knowledge ? Anyway, my thanks to him.

  • @adhambashir
    @adhambashir 10 років тому

    I love your videos Tim, very well thought out and presented clearly. Thank you!

  • @lulusebola8090
    @lulusebola8090 4 роки тому +1

    I finally understand this concept! Thank you.

  • @Yashad1000
    @Yashad1000 6 років тому

    Explained in a very concise and accurate manner...! Perfectly understood d swaps..
    Thank you very much..!

  • @riddle1187
    @riddle1187 9 років тому

    This was very helpful in understanding a rather complicated concept. Thank you!

  • @aisyrinjanita3220
    @aisyrinjanita3220 7 років тому

    Such a great video. Very simple to understand. Get yourself prepared for the upcoming CFA exam, guys. Good luck!

  • @xevious2864
    @xevious2864 6 років тому

    In my 4 years of business school this is the best display of teaching I have ever seen; this man should be a finance professor making six figures.

  • @maciej5264
    @maciej5264 Рік тому

    You kept me fully interested until the end. You enlightened me in a moment when you said it is financial magic.
    It is the simplest and straight to the point IRS explanation I've ever found.

  • @shri8203
    @shri8203 6 років тому

    Very 1st time i understood about Swaps. Thanks

  • @amymar771
    @amymar771 4 роки тому

    This is the best explanation ever for newbie, if you know absolutely nothing about swap or are confused. He really explained it as you were a five year old which is something I wanted lol

  • @JMan730
    @JMan730 12 років тому

    I'm learning a LOT from your videos - they're very clear - thanks!

  • @nouranshehata4311
    @nouranshehata4311 8 років тому +1

    You are probably the only reason I now have a better chance at passing my final on Tuesday.

  • @shaswatmohanty7907
    @shaswatmohanty7907 3 роки тому

    Amazingly explained the concept of SWAPS using perfect example. Thanks :-)

  • @kingcobra071
    @kingcobra071 8 років тому

    you are genius!!! just loved the video.....easy, simple. thanks.

  • @pragyaverma9665
    @pragyaverma9665 7 років тому +1

    Thank you for all the knowledge that you have imparted with such ease of understanding. I am a fan of all your work ! :)

  • @agnax222
    @agnax222 11 років тому

    Thank you very much for you video, I learn much more from your vid than in my classroom.Please keep up the awesome works!!!

  • @imfallingooo
    @imfallingooo 5 років тому

    thank you!!!! greatest and easiest explanation to understand in the entire internet!!!

  • @yosefbakali4567
    @yosefbakali4567 5 років тому +1

    Thank you for the explanation! Very good quality!

  • @willyoctavianus8691
    @willyoctavianus8691 2 роки тому

    What an educator you are, Sir!
    Salute

  • @vivat_in_aeternum7721
    @vivat_in_aeternum7721 6 років тому

    I'm not even a native English speaker and this explanation is the best available on UA-cam

  • @tg3470
    @tg3470 2 роки тому

    This guy explains these topics in a matter that is very easy to understand. Thank you sir.

  • @DylanBasu
    @DylanBasu Рік тому

    Thank you very much for explaining a swap. Was feeling very grateful for this video. Good job!

  • @GSCSoftware
    @GSCSoftware 6 років тому +1

    Thanks for explaining this in a really clear way, great video!

  • @kpchuah
    @kpchuah 9 років тому +4

    Crystal clear information, thank you

  • @schulden93
    @schulden93 8 років тому +1

    Thank you! Great video, I wish my professors were that good!

  • @jenniferuno
    @jenniferuno 12 років тому

    Really like your video! So clear and easy to understand!Please post more!Thank you!!

  • @SmartKidLol
    @SmartKidLol 7 років тому

    I spent three hours on my lecture notes but i still can't understand the concept of 'swap'. Your video helps me a lot. Thank you!!! :D

  • @caipatrick6866
    @caipatrick6866 5 років тому

    Thank you sir! Your explanation is simple and easy to understand!

  • @siddhantgala7461
    @siddhantgala7461 7 років тому

    Amazing explanation. No text book has cleared my concepts like this video. Keep it up and thank you :D

  • @lisama6149
    @lisama6149 8 років тому +1

    thank you so much!!!helps a million!!!!!

  • @larryporter3744
    @larryporter3744 9 років тому +3

    YOU DO A WELL JOB OF EXPLAINING!

  • @GProof
    @GProof 8 років тому

    thank you very much for explaining so easily!!!

  • @theolukonde2326
    @theolukonde2326 3 роки тому +1

    This is brilliant, thank you for simplifying this topic for me.

  • @mangeshshelar7375
    @mangeshshelar7375 5 років тому

    This a simplest and amazing video to understand swap! Thanks

  • @makpae007
    @makpae007 9 років тому

    Outstanding explanation! You make it look so simple.

  • @jorgecarballo7078
    @jorgecarballo7078 10 років тому

    best video i found on this topic! thank you ! it was really helpful!

  • @GanjaPharmzor
    @GanjaPharmzor 10 років тому

    I can't possible grasp the fact that anyone could come up with this.. Really ingenious stuff!

  • @AltoPianista
    @AltoPianista 3 роки тому

    wow...the way you made it look so easy is incredible. Thank you so much !!!!

  • @tatianacz6813
    @tatianacz6813 3 роки тому

    This video is f.. brilliant. No one explained it better. Thanks.

  • @abdenn
    @abdenn 8 років тому

    Thank you! Amazing illustration....

  • @ambaya86
    @ambaya86 11 років тому

    Very well explained. I always got this confused. Thank you so much

  • @especheg
    @especheg 12 років тому

    this tutorial is amazing, way much better than the explanation of my teacher.... thank u very much MoneyWeeKvideos

  • @ravindersood3286
    @ravindersood3286 9 років тому

    thank you so much :) great explanation! helped a lot!

  • @prajwalkavadblog
    @prajwalkavadblog 5 років тому

    The best Explanation for swaps. Thank you...........

  • @BasementR1
    @BasementR1 Рік тому

    Thanks a lot Tim ! Couldn't wrap my head around the concept, now I can !

  • @TheMalevolentDeath
    @TheMalevolentDeath 12 років тому

    Sir, you are amazing! i understood now what a swap is and believe it or not i spended over an hour trying to understand it and i couldn't, for that you have my appreciation and a like+fave.
    Again thank you a lot kind sir.

  • @usernameBeatles
    @usernameBeatles 7 років тому

    Very clearly illustrated. Love this fella.

  • @Cnctax
    @Cnctax 9 років тому

    So easy to understand. Very well done!! Thank you

  • @songswrittenbyme
    @songswrittenbyme 5 років тому

    Thanks for teaching! You're brilliant!

  • @purvakulkarni209
    @purvakulkarni209 2 роки тому

    Thank you so much for this simple and clear explanation.

  • @danielrm94
    @danielrm94 8 років тому +1

    Thank you! Very useful! Greetings from México!

  • @yingwang7084
    @yingwang7084 3 роки тому

    Man, i know only the basic of finance, but i think i understand most of the video. Thanks.

  • @xiaomengzhu5793
    @xiaomengzhu5793 11 років тому

    This is MUCH more useful than my stupid CPA material, thanks you so much!!!!!!!

  • @conniedashiell2656
    @conniedashiell2656 9 років тому

    Great video! He was clear and got straight to the point. Thank you so much!

  • @kunkro20
    @kunkro20 5 років тому

    Crisp and clear explanation. Thanks Tim

  • @besongbesong6434
    @besongbesong6434 3 роки тому

    Very explicit and detailed Tim. Thanks, I now get it.

  • @1337CodeMaster
    @1337CodeMaster 9 років тому

    Thank you very much! This helped me a lot!

  • @meenakshiuk6965
    @meenakshiuk6965 4 роки тому

    The most easiest explanation on swaps. Amazing

  • @MargoSengupta
    @MargoSengupta 4 роки тому

    You are AWESOME! I was looking over my boyfriend's shoulder and asked what a swap was and he didn't feel like explaining. So I watched this and now I'm talking to him about LIBOR and shit. THANK YOU