One of the best teachers I've come across....in any subject. This along with the two Bond Basics videos has made simple for me a concept I have struggled for years to understand. Thank you Tim!!
You prolly dont give a shit but does any of you know of a tool to get back into an instagram account? I was dumb lost my login password. I would love any help you can offer me!
I've now watched all 3 of Peter's (?) bond videos, and I find him a great teacher. He's easy and relaxed about the material, with a very engaging style. Thanks!
Thnx for the insight... Another way to put it Tim, in my opinion, is that for an upward sloping yield curve the long term interest rates are considered to be higher than short term interest rates and vice versa for an inverted yield curve.... hence all about market expectation of short term interest rates that are extrapolated to arrive at the projected long term interest rates.
Hi Tim I like your videos, you have a very simple and clear way to explain things so it is easy for anybody to understand the concepts. I would like to see a video of how a stock dividens affects the p/e ratio over time. Thanks
Can you make a video that tries to explain a strategy of experianced trader with bonds. When to buy short term bond and when to buy long term bond. Video is great bdw big thanks.
it is because icelandic is the hardest language in the world. just today, i got into it at work. everybody thinks english is the hardest language but no, it is icelandic.
Thanks Tim for the video. Have watched many of them - all very useful. I've recently joined a bank as an Analyst but come from an Engineering background. Can anyone recommend any good courses (university/online) or books that would help me learn the basics/intermediate material. Ideally would like something that would prepare me for a professional qualification. Thanks. x
Could you do a video on how QE effects the yield curve, since Japan didn't have an inverted yield curve since the early 1990's? And pretty much every central bank is trying to do QE right now.
But what is the logic / reasoning behind a short term yield curve going up higher if the FED has not raised rates? Does it reflect higher short term market risk? If so, then what is the driver of that higher perceived risk? - Furthermore, when the short term rate suddenly goes up and the curve flattens that encourages demand for bonds, but as demand increases rates should adjust and go back down leading to money flowing back into equity markets, right?
Thank you Tim for your great lessons. Our governments have forced us to learn about finance and markets . Now that we are bankrupted :-) Best Regards from Greece.
1. at 4:41 , as you give them your money for a longer period, why does that make sense for the gov't to pay you more later. What do they do with that money for a longer period to afford to pay you more? Is it because they have the possibility to invest it somewhere else? 2. Isn't the US in debt? What are they doing about that? How does issuing bonds help them, if the person buying the bonds is making a profit out of them on the longer run? Not sure if this one makes sense.
I don't understand why an increase in price of Long term bonds ALONE is a reaction to lowered interest rates, if people are looking for an alternative home for their money, why not look at long, medium and short term bonds. if that happens the curve should retain it's normal shape but drops lower as yields across the board are reduced. Please help.
ha hasn't said anything about what if long-term dated ones are lower than short-term dated ones talking about inverted curve yield (crisis situation). Still fun to recap. Thanks!
but isn't it favorable for the govt if people prefer to invest in long term bond?? even if the increase in purchase of long term bond is caused by decrease in interest rates.
mrredolfodias - yes there's also my moneycontent channel which is free too. You'll find another 30 videos there on topics ranging from QE to bonds. Happy viewing!
I think the guy confuses himself and all of us by saying that the YTM equals the Current Yield. At 10:32 here writes on the board the formula of CURRENT YIELD=Return / Price (annual return for the purchase price) which is absolutely different with the more complicated formula of YTM (total return till maturity). Please, correct me if Wrong.. thanks
Hi . 15.9.2018 and Greece is still in big troubles. Bigger troubles than seven years ago i.e. the debt/gdp is higher :-) Would be much better if north Europeans would run the country , or else have to establish a permanent bail out mechanism :-) Did this happen before to any other nation? permanent mechanism of bail out Greece perpetually , sounds good. The politicians have tax free high salary and hundreds of extras that can be 15.000-30.000 euros per month. The two major parties of Greece own about 400.000.0000 Euros to the banks. These parties do not pay nothing back.
As an investor who plays the US stock market and completely understands the yield curve and the yield curve inversion, I would say this video is a terrible explanation of the yield curve. Theoretically it sounds right on an academic level but it is really extremely terrible.
Duration and convexity measure the sensitivity of bond prices to interest rate movements. Duration measures the average term of the bond. Generally speaking the greater the duration of the bond the greater the sensitivity of the bond price to interest rate movements. If interest rates are going up you want be holding short duration bonds. If interest rates are going down you want to be holding bonds with greater duration. Follow the link for more info.
One of the best teachers I've come across....in any subject. This along with the two Bond Basics videos has made simple for me a concept I have struggled for years to understand. Thank you Tim!!
Had a few requests for other channels - one I like is the Khan Academy. Lots of videos on financial topics and many are good quality. Tim.
Sir, you are among the best if not the best in this domain. Clear explanation, clear language and pronunciation.
Thanks and very well done !
tim u will be rewarded for this. selfless service
This guys brilliant!
love it as well - easy to understand
You prolly dont give a shit but does any of you know of a tool to get back into an instagram account?
I was dumb lost my login password. I would love any help you can offer me!
@Carl Alexander instablaster :)
Superb video - I watched 20 videos trying to understand the IYC and this hits the nail on the head!
Thank you for using US and UK Jargon. I'm from the US but when I travel or do business in the UK I want to aware of the Talk.
Thank you for making these. Its amazing how little they teach you about this in University!!
Awesome, easy explanation saves a lot of time instead of reading stuffed up material ... Thanks a lot Tim.
I've now watched all 3 of Peter's (?) bond videos, and I find him a great teacher. He's easy and relaxed about the material, with a very engaging style. Thanks!
Excellent summary of how to interpret yield curves.
Many Thanks Tim for sharing excellently taught videos on Finance. Simply superb.
Superb demonstration. I am enlightened.
Thanks a lot!!!best teacher ever
Thank you Tim Bennett, this is really helpful to understand. I am subscribing to your channel right away
Thnx for the insight... Another way to put it Tim, in my opinion, is that for an upward sloping yield curve the long term interest rates are considered to be higher than short term interest rates and vice versa for an inverted yield curve.... hence all about market expectation of short term interest rates that are extrapolated to arrive at the projected long term interest rates.
very nicely explained, thanks a lot. I wish i could be your classroom student rather than virtual classroom student.
Tim u did a marvellous job in the summing up of your vdeo content. Thumbs up
Hi Tim I like your videos, you have a very simple and clear way to explain things so it is easy for anybody to understand the concepts.
I would like to see a video of how a stock dividens affects the p/e ratio over time.
Thanks
Excellent explanation.
Brilliant Tim.. Why didn't i find this video earlier .. :-)
I make about 250 dollars each day trading options online. If you want to learn what my strategy is simply send me an email here: toshtao@gmail. com
Great explanation, enjoyed it!
Really well explained. Thanks!!
MoneyWeek, are you going to make an updated video on the yield curve since it's now inverted here in the US?
Can you please make a video about the current situation of negative bond yields?
I make about 250 dollars each day trading options online. If you want to learn what my strategy is simply send me an email here: toshtao@gmail. com
Lol!
@@michaelreyes3653 chilufyabrian.bc@gmail.com
GREAT CHANNEL THANKS!!!
15xspikex15 - already have! See "what are options" "what are futures" and "what are swaps" plus of course "what are derivatives". Happy viewing!
P il
that's about my mater thesis! very interesting subject
brilliant teaching, thanks so much!
Thank you indeed for your time and effort.
This guy is really good!
Can you make a video that tries to explain a strategy of experianced trader with bonds. When to buy short term bond and when to buy long term bond.
Video is great bdw big thanks.
it is because icelandic is the hardest language in the world. just today, i got into it at work. everybody thinks english is the hardest language but no, it is icelandic.
Can you compile a video on sipps, qropps and qnupps???????
Would help me a lot..
Thanks for the video,do you have or plan to create a video on Swaps(forex)..
If so,it will be great to have,just to understand the nuances.
Hey Tim, do you think you can make a video about derivates??
Excellent share mate!
Thanks
Thanks Tim for the video. Have watched many of them - all very useful. I've recently joined a bank as an Analyst but come from an Engineering background. Can anyone recommend any good courses (university/online) or books that would help me learn the basics/intermediate material. Ideally would like something that would prepare me for a professional qualification. Thanks. x
Hey thanks for getting in touch. I have discovered Investopedia...such a great tool. Also decided to work towards a Chartered Banker :)
Thanks for explaining.
Is there any more channels like this that you can share?!
Could you do a video on how QE effects the yield curve, since Japan didn't have an inverted yield curve since the early 1990's? And pretty much every central bank is trying to do QE right now.
But what is the logic / reasoning behind a short term yield curve going up higher if the FED has not raised rates? Does it reflect higher short term market risk? If so, then what is the driver of that higher perceived risk? - Furthermore, when the short term rate suddenly goes up and the curve flattens that encourages demand for bonds, but as demand increases rates should adjust and go back down leading to money flowing back into equity markets, right?
Thank you.. Great video
good video, thanks, was very interesting
Hi, can u do a tutorial on the duration table construction for bonds?
Thank you Tim for your great lessons. Our governments have forced us to learn about finance and markets . Now that we are bankrupted :-) Best Regards from Greece.
Hi Tim, just for interests sake, what does it mean if something "sounds icelandic"?
1. at 4:41 , as you give them your money for a longer period, why does that make sense for the gov't to pay you more later. What do they do with that money for a longer period to afford to pay you more? Is it because they have the possibility to invest it somewhere else?
2. Isn't the US in debt? What are they doing about that? How does issuing bonds help them, if the person buying the bonds is making a profit out of them on the longer run? Not sure if this one makes sense.
nice and clear
this is brilliance
hi, can i know is there any different between effective interest rate and add on interest rate?
What's a jargon?
I don't understand why an increase in price of Long term bonds ALONE is a reaction to lowered interest rates, if people are looking for an alternative home for their money, why not look at long, medium and short term bonds. if that happens the curve should retain it's normal shape but drops lower as yields across the board are reduced. Please help.
ha hasn't said anything about what if long-term dated ones are lower than short-term dated ones talking about inverted curve yield (crisis situation). Still fun to recap. Thanks!
sir! yield up, currency price up right?
that was fkin awesome , keep up the good work
but isn't it favorable for the govt if people prefer to invest in long term bond?? even if the increase in purchase of long term bond is caused by decrease in interest rates.
7:14 LOL
mrredolfodias - yes there's also my moneycontent channel which is free too. You'll find another 30 videos there on topics ranging from QE to bonds. Happy viewing!
I think the guy confuses himself and all of us by saying that the YTM equals the Current Yield. At 10:32 here writes on the board the formula of CURRENT YIELD=Return / Price (annual return for the purchase price) which is absolutely different with the more complicated formula of YTM (total return till maturity).
Please, correct me if Wrong.. thanks
+Greek Paradise where did he say YTM is equal to current yield, I think he just tried to associate inverted curve effect to the yield overall.
Thx !
Hi . 15.9.2018 and Greece is still in big troubles. Bigger troubles than seven years ago i.e. the debt/gdp is higher :-) Would be much better if north Europeans would run the country , or else have to establish a permanent bail out mechanism :-) Did this happen before to any other nation? permanent mechanism of bail out Greece perpetually , sounds good. The politicians have tax free high salary and hundreds of extras that can be 15.000-30.000 euros per month. The two major parties of Greece own about 400.000.0000 Euros to the banks. These parties do not pay nothing back.
The risk of investing in government bonds is not close to 0. The money can be worthless or worth less by the time you get it back.
i wish there were any
Genious
"The bond vigilantes sometimes signal their disquiet with the market."
How British can you get?
Icelandic? Sounds rather more like British jargon to an Icelander. Góð útskýring
Tresuary is the bench mark? Get paid back with paper money....
As an investor who plays the US stock market and completely understands the yield curve and the yield curve inversion, I would say this video is a terrible explanation of the yield curve. Theoretically it sounds right on an academic level but it is really extremely terrible.
you sir, are amazing ! thank you so much
Genious.
you are just AWESOME!
Duration and convexity measure the sensitivity of bond prices to interest rate movements. Duration measures the average term of the bond. Generally speaking the greater the duration of the bond the greater the sensitivity of the bond price to interest rate movements. If interest rates are going up you want be holding short duration bonds. If interest rates are going down you want to be holding bonds with greater duration.
Follow the link for more info.