Forward Contracts Explained: How-To Value Them

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  • เผยแพร่เมื่อ 4 ต.ค. 2024

ความคิดเห็น • 15

  • @RyanOConnellCFA
    @RyanOConnellCFA  9 หลายเดือนก่อน +2

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  • @tedgrove7775
    @tedgrove7775 2 หลายเดือนก่อน +2

    Excellent video!! I love the way you describe concepts

    • @RyanOConnellCFA
      @RyanOConnellCFA  2 หลายเดือนก่อน

      Thank you Ted, I appreciate that!

    • @tedgrove7775
      @tedgrove7775 2 หลายเดือนก่อน

      @RyanOConnellCFA Anytime bro! You are one of the reasons I cleared my L1 examination 💪

  • @husky9007
    @husky9007 9 หลายเดือนก่อน +1

    You should do a video on calculating basic eps, including how to calculate the weighted average of securities for the formula.
    You should also cover diluted eps calculations and all the different ways you can do that, those would be great videos imo

    • @RyanOConnellCFA
      @RyanOConnellCFA  9 หลายเดือนก่อน

      I was actually just planning to start posting a ton of videos on equity valuations so I will definitely look more into this topic shortly!

  • @minasalahshoury8426
    @minasalahshoury8426 7 หลายเดือนก่อน +1

    Thank you Ryan for sharing your knowledge with us. Your videos are extremely helpful to learn the materials. I was wondering if you could make a video on interest rates and how to find the equivalent of monthly, daily etc. And how yield rates are different than interest rates and how to find the average yield! These concepts always confuse me🤦🏻‍♀️

    • @RyanOConnellCFA
      @RyanOConnellCFA  5 หลายเดือนก่อน +1

      I can look into the second part of your question in the future!
      I think this video will help answer your question about converting interest rates to different time periods. In this video I convert daily to annual returns: th-cam.com/video/56CgFMoaQVo/w-d-xo.html

    • @minasalahshoury8426
      @minasalahshoury8426 5 หลายเดือนก่อน +1

      @@RyanOConnellCFA Great! Thank you

  • @Akash24729
    @Akash24729 9 หลายเดือนก่อน +1

    Really an awesome video as always. Short and yet so much to learn. Could you please prepare some topics on fx topics such as fx options, forwards and how forex greeks work and its calculations. Thank you for sharing the knowledge.😊

    • @RyanOConnellCFA
      @RyanOConnellCFA  9 หลายเดือนก่อน +1

      Great suggestion! I will look into this topic in going forward. It will be an interesting one to explore down the line

  • @victoricus1
    @victoricus1 9 หลายเดือนก่อน +1

    Ryan, hi. It may be an off topic question, but why is there a topic 'describe how swap contracts are similar to but different from a series of forward contracts' in the CFA curriculum? Why would anyone need to structure their deals as a series of forward contracts in the first place? What's the economic reason behind this format? Also, I'm trying to find any interconnectedness in the curriculum as to why a portfolio manager would choose one instrument over another. For example, a portfolio manager would rather buy an IRS over a bond for this and that reason (e.g. IRS to protect against falling rates). Is there a section in the CFA curriculum where one would find pros and cons of different instruments and how they are connected? Or is it hidden deep in the official CFA program curriculum and you have to rummage through thousands of pages to achieve enlightenment? Suppose I become a financial planner/manager, where would I search for strategies of which instrument to use in a particular situation?

    • @RyanOConnellCFA
      @RyanOConnellCFA  9 หลายเดือนก่อน

      Hey! From my understanding, swaps and series of forward contracts are similar because both involve future commitments based on specified terms, but they differ in structure and flexibility. Swaps typically involve exchanging cash flows and can be more complex, while forward contracts are simpler agreements to buy or sell an asset at a future date. Portfolio managers might choose a series of forward contracts for more specific, tailored hedging or investment opportunities that match exact future cash flow needs. They might prefer interest rate swaps over bonds to manage interest rate risk more precisely, as IRS can provide more direct control over interest rate exposures and can be customized to specific needs, like hedging against falling rates. As for where exactly in the curriculum it discusses pros and cons, I'm not too certain. You may need to rummage through 😂

    • @victoricus1
      @victoricus1 9 หลายเดือนก่อน +1

      @@RyanOConnellCFAwell, I'm a bit sad now, albeit more enlightened) I'll just keep on keeping on...

    • @RyanOConnellCFA
      @RyanOConnellCFA  9 หลายเดือนก่อน

      @@victoricus1 Good luck mining for that gold!