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
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🥰
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!!
Actually I might do a basic currency swap soon. Caps floors and collars are interesting too but require some background knowledge about options (a cap is just a string of options, as is a floor, with a collar being the two in combination). Thanks for the suggestions. Tim.
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.
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.
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 :)
matschbirne - that's right, the whole thing depends on the counter parties not defaulting. Of course a bank can separately protect itself using credit derivatives (see my video on what is a credit default swap for example) but these also carry counterparty default risk!! So one bank going bust can have a massive ripple effect as we have seen....
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!
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
I came across this video while looking for a swap presentation to send to a lawyer friend to clue him in a little, whilst it is a very user friendly explanation, there are some fundamental and fairly crucial problems, particularly when you look at it from a practical stand point. Bare with me this may take a while!
fair enough mate. As i said at the beginning, it does convey the theory well, and for what it's worth it's by far one of the better ones on youtube for doing that.
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.
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.
Why has no textbook ever thought to explain it this way? We spend hard-earned money buying books that intentionally obfuscate things and leave the reader more confused than they were before reading them. Thanks so much Tim Bennett for making this rocket science of a concept feel like ABC. I must confess for a moment there I was checking the comment section expecting to see people who understood swaps screaming about how wrong his explanation was because, by Jove, there's no way this concept could be this simple. From the comments so far, I can now fully accept Tim's explanatory genius. Again, thanks Tim.
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
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
HI! Company A is paying Libor to Swaps Bank, and receiving 8% from them, and it's also paying 7% fix rate to Bank A. Thus, Company A net payment is: Libor - 8% +7% = Libor - 1%
It's an brilliant video, but I don't get where the relative advantage of Company B is, since Company A can borrow at a lower cost for both the fixed and variable deal... what swap sorcery is this?
Thanks for the explanation. Your videos are a great help. The way you explain and use explamples in your videos are so great. it makes such enjoyable to watch it and learnt it. Thank you so much.
To explain something like this in a way that someone new can understand is really admirable.
Exactly!
Indeed! 😍
Totally! I think I got it
He’s the best
@@kelliezhang6750 O
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
Same , my teacher is so bad
Best explanation of SWAPS I have ever seen
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.
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.
This concept was real hard to grasp. This video made it look easy. You are a good teacher.
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🥰
You just explained one of the most complicated practice in finance in the easiest way possible. Great job!!
Better and clearer explanation than a whole 3 hr class with my professor
We need to bring this guy out of fucking retirement and make him a fucking national treasure
Mark Channel c
Cool swear words
This is the best video on swaps that explains the basic concepts extremely well
This guy is for some reason hilarious, yet such a great teacher! thumbs up all day every day.
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!!
He has explained a difficult and complicated topic in a simple, objective manner. Best explanation I have ever seen.
Good comment - yes the swaps market is, in many ways, one enormous example of arbitrage (exploiting pricing anomalies).
A very good and clear explanation of an OTC swap. No long winded introductions simply concise and to the point.
Actually I might do a basic currency swap soon. Caps floors and collars are interesting too but require some background knowledge about options (a cap is just a string of options, as is a floor, with a collar being the two in combination). Thanks for the suggestions. Tim.
This man is a pedagogical wizard. Shame he stopped making videos.
Did he really stop?
Thanks Dustin!
@Dustin Suryadi Thank you for the info!!!
He's doing vids on killik and co's channel now.
follow his blog 'moneyweek.com'
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.
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.
My lecturer explained this and nobody understood anything but here everything is clear. Great job!
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 :)
I'm not even a native English speaker and this explanation is the best available on UA-cam
Thanks man. This video really helped me understand the basics of swaps. It even helped more than an hour of reading.
matschbirne - that's right, the whole thing depends on the counter parties not defaulting. Of course a bank can separately protect itself using credit derivatives (see my video on what is a credit default swap for example) but these also carry counterparty default risk!! So one bank going bust can have a massive ripple effect as we have seen....
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!
You make a strong difference to many. BEST TEACHER EVER!!! Thank you so much!
The best Interset SWAP learning VIDEO ever.
This video has clarified swaps and relieved me of pre-exam stress and anxiety. thank you TIM
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
nice presenation! Your speaking speed really help non-English speaker to understanding swap! Thank you
YOU ARE A.M.A.Z.I.N.G. saved my life preparing for the final exam!! this is the BEST explanation EVER!!!
I came across this video while looking for a swap presentation to send to a lawyer friend to clue him in a little, whilst it is a very user friendly explanation, there are some fundamental and fairly crucial problems, particularly when you look at it from a practical stand point. Bare with me this may take a while!
your explanation is really.. really much more clear than what the professor gave in the class... THANK YOU..!!
fair enough mate. As i said at the beginning, it does convey the theory well, and for what it's worth it's by far one of the better ones on youtube for doing that.
He is great. Why did he stopped making videos? How can we get him back to teaching.
this tutorial is amazing, way much better than the explanation of my teacher.... thank u very much MoneyWeeKvideos
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.
you can't get anything better than this tutorial anywhere.......
ravishankar
You are probably the only reason I now have a better chance at passing my final on Tuesday.
This is MUCH more useful than my stupid CPA material, thanks you so much!!!!!!!
i would have aced my economics if this guy thought me!
JeevS GOne Still fail your spelling test though
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.
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.
Why has no textbook ever thought to explain it this way? We spend hard-earned money buying books that intentionally obfuscate things and leave the reader more confused than they were before reading them.
Thanks so much Tim Bennett for making this rocket science of a concept feel like ABC. I must confess for a moment there I was checking the comment section expecting to see people who understood swaps screaming about how wrong his explanation was because, by Jove, there's no way this concept could be this simple. From the comments so far, I can now fully accept Tim's explanatory genius. Again, thanks Tim.
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.
His teaching standard is GOLD!
The most easiest explanation on swaps. Amazing
thank you!!!! greatest and easiest explanation to understand in the entire internet!!!
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
This video is f.. brilliant. No one explained it better. Thanks.
The best explanation on IR Swaps I've ever heard! Thanks!
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.
Thank you so much for making swaps so easy to learn!!! Thanks a lot!!! Better than going to my lectures actually!!!
This man is an excellent educator.
No one could have explained it better. The way you teach is amazing.
Thank you, sir :)
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
Learning for my state exams - Mr.Bennett you are saving me this week!
fantastic, you really did a great job explaining this in such an understandable way, didnt even had to pauze or replay it. well done!
Best explanation for SWAPS! TYVM!
Thank you very much for you video, I learn much more from your vid than in my classroom.Please keep up the awesome works!!!
Brilliant ... your way of explanation is simply brilliant !!
Finally Got a teacher. Thanks
I can't possible grasp the fact that anyone could come up with this.. Really ingenious stuff!
After watching many videos on this topic, your explanation has made me finally have an understanding of this topic. Thanks a million Sir.😊
Amazingly explained the concept of SWAPS using perfect example. Thanks :-)
I'm learning a LOT from your videos - they're very clear - thanks!
Thank you very much for explaining a swap. Was feeling very grateful for this video. Good job!
Sorry about that - will see whether we can dig up a quieter one!
Tim Bennett, your videos are amazing !
What an educator you are, Sir!
Salute
Man, i know only the basic of finance, but i think i understand most of the video. Thanks.
HI! Company A is paying Libor to Swaps Bank, and receiving 8% from them, and it's also paying 7% fix rate to Bank A. Thus, Company A net payment is: Libor - 8% +7% = Libor - 1%
It's an brilliant video, but I don't get where the relative advantage of Company B is, since Company A can borrow at a lower cost for both the fixed and variable deal... what swap sorcery is this?
Such a great video. Very simple to understand. Get yourself prepared for the upcoming CFA exam, guys. Good luck!
Very Very Cleared explanation of SWAP
Explained in a very concise and accurate manner...! Perfectly understood d swaps..
Thank you very much..!
Very clearly illustrated. Love this fella.
Really like your video! So clear and easy to understand!Please post more!Thank you!!
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
That was awesome! So clear cut! I am better prepared for my final now! Thank you :D
best swap tutorial on youtube
0:51 As I type this on 02/11/2017, it only took the BOE another 6 and a bit years to finally do the rate hike haha.
Very 1st time i understood about Swaps. Thanks
Thanks for the explanation. Your videos are a great help. The way you explain and use explamples in your videos are so great. it makes such enjoyable to watch it and learnt it. Thank you so much.
Crisp and clear explanation. Thanks Tim
This guy explains these topics in a matter that is very easy to understand. Thank you sir.
how straightforward and effective this video explains the principles .
Finance is a magic and this teacher is a magician. So much admire.
Thnx for the clear explanation; quite a clever strategy.
I will be putting something up on basic currency swaps soon in light of the Fed's latest liquidity move. Tim.
best teacher ever seen!
Thank you Sir, you made live a bit easyer for Finance students in Germany.
This a simplest and amazing video to understand swap! Thanks
Very well explained. Thanks never understand swaps better than that.
Thanks a lot Tim ! Couldn't wrap my head around the concept, now I can !
Best teacher ever seriouslyyyyy
Thanks for explaining this in a really clear way, great video!
wow...the way you made it look so easy is incredible. Thank you so much !!!!
Great Video, great explanation!