Interest rate swap 1 | Finance & Capital Markets | Khan Academy

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  • เผยแพร่เมื่อ 27 ธ.ค. 2024

ความคิดเห็น • 65

  • @Hoppensagen
    @Hoppensagen 7 ปีที่แล้ว +105

    Okay seriously this guy is way better at explaining things then my teacher. It's me 3 minutes to get it here, and takes my teacher 2 hours.

    • @cyprushits
      @cyprushits ปีที่แล้ว

      Your teacher has to justify the 2 hours of his work, that's why it takes 2 hours.

  • @verdaderoamor980
    @verdaderoamor980 4 ปีที่แล้ว +13

    Thank you Sir ! You deserve more than just a comment for this wonderful presentation !

  • @pavanmadhrani3892
    @pavanmadhrani3892 11 หลายเดือนก่อน

    i never comment but credit where credits due ive got a final year uni exam in 12h and this guys saving my life rn

  • @99不喝酒
    @99不喝酒 2 ปีที่แล้ว +1

    That explanation is the best explanation on this topic I ever had.

  • @Dushmantha18
    @Dushmantha18 5 หลายเดือนก่อน

    Learnt so much from you. Wish i came across this channel earlier. Amazing explanation from back of the day ❤👏.

  • @nazhansyamil4632
    @nazhansyamil4632 3 ปีที่แล้ว

    hey it's 10 years from the videos was posted but this helps me a lot, thank you so much!

  • @dynamicfoe1
    @dynamicfoe1 12 ปีที่แล้ว +7

    Most likely, Company A has weak or poor credit ratings, hence, banks will issue floating interest rate for Company A.

  • @alparslankorkmaz2964
    @alparslankorkmaz2964 4 ปีที่แล้ว +1

    Nicely explained.

  • @RahulSurana2k14
    @RahulSurana2k14 7 ปีที่แล้ว +1

    thanks a lot Salman Khan 😊

  • @Soni_Saheb
    @Soni_Saheb ปีที่แล้ว

    Super thanks @khan academy🎉
    You made it too easy to understand

  • @sridharansri2258
    @sridharansri2258 2 ปีที่แล้ว

    Thank you sir, it's clear now.

  • @augustinewang3736
    @augustinewang3736 5 ปีที่แล้ว +1

    Great! Helps me a lot

  • @fightpulpfictionclub
    @fightpulpfictionclub 12 ปีที่แล้ว +3

    Thank you so much for the video. Much appreciated.

  • @Krokorok
    @Krokorok 13 ปีที่แล้ว +3

    My teacher told me about your channel. Plus when she said "Khan" I was like: :O
    My middle name is also Khan so yeah...

  • @DarkSCtv
    @DarkSCtv 3 ปีที่แล้ว +1

    way clearer than my course material, thanks a lot

  • @karthikamurugesan4561
    @karthikamurugesan4561 2 ปีที่แล้ว

    Well explained

  • @sreejeshvadakkekkara3885
    @sreejeshvadakkekkara3885 3 ปีที่แล้ว

    Thank you so much the crispy serious master!

  • @JesNicoleW
    @JesNicoleW 10 ปีที่แล้ว +1

    Thanks for your help!

  • @LoreenGuzy
    @LoreenGuzy หลายเดือนก่อน

    Great content, as always! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?

  • @simranbudakoti5109
    @simranbudakoti5109 4 ปีที่แล้ว

    Thanks helped me a lot... 😊😊 Keep making such videos.. 👍👍

  • @BKwai12
    @BKwai12 5 ปีที่แล้ว +1

    Hi Khan
    Would you mind to share some idea about CNY repo IRS ?
    Thanks

  • @leoliu4271
    @leoliu4271 7 ปีที่แล้ว +1

    thanks for the amazing explanation

  • @concyryan
    @concyryan 12 ปีที่แล้ว +1

    Thanking you from Ireland

  • @kartikk7176
    @kartikk7176 3 ปีที่แล้ว

    Simply Brilliant explanation!

  • @pebre79
    @pebre79 11 ปีที่แล้ว +3

    I love ya Sal! you're a fantastic teacher

  • @mohamednazir6939
    @mohamednazir6939 9 หลายเดือนก่อน

    Superbb....

  • @deepsarkar3888
    @deepsarkar3888 6 ปีที่แล้ว +3

    What if the floating rate increases the next year? Will they still follow the same arrangement?

    • @sleepychicken4878
      @sleepychicken4878 6 ปีที่แล้ว

      yes

    • @Fred-zt5ky
      @Fred-zt5ky 2 ปีที่แล้ว +2

      Yes and A will be happy as their payments to B won’t increase whereas B will be paying more to A.

  • @houdapurple
    @houdapurple 11 ปีที่แล้ว +1

    thank you !

  • @danielhuisman1996
    @danielhuisman1996 5 ปีที่แล้ว +8

    I get how it works but why on earth would they do it??

    • @LauritZenc
      @LauritZenc 5 ปีที่แล้ว +2

      Often it means that a lender can get a better rate than their own bank is offering.

  • @keyblade134679
    @keyblade134679 13 ปีที่แล้ว +8

    here what i don't get, why would company A take out a variable rate if it doesnt like a variable rate just to swap it with another company?

    • @fridayezenwa
      @fridayezenwa 3 ปีที่แล้ว +1

      Maybe company A is a riskier company and the a variable rate loan is all they could qualify for?

    • @musak.4068
      @musak.4068 2 ปีที่แล้ว +1

      @@fridayezenwa Yup, or maybe they fell under hard times and lost cashflow so having variable rates makes them nervous

    • @b2bguy
      @b2bguy 4 หลายเดือนก่อน

      From what I understand (and I’m still struggling a bit) , the opposing countries have more favourite rates in their respective countries. So I guess that means it’s more cost effective to borrow at the other country’s rate because it comes from the credit risk rather than the credit risk of a country outside of its own.

  • @Stevenuge
    @Stevenuge 13 ปีที่แล้ว +3

    sometimes I watch your videos to listen to your voice......

  • @JA51592
    @JA51592 12 ปีที่แล้ว

    i love your handwriting sal

  • @shyamav5
    @shyamav5 13 ปีที่แล้ว

    No one does it like sal!

  • @soundharyasfeed7374
    @soundharyasfeed7374 2 ปีที่แล้ว

    I am asking a very basic question but after period 1, (@0.56), you would have lesser beginning balance after the interest payment right, so shouldnt the Period 2 payment be slightly lesser than 60k? Is interest payment based on the beginning balance or the notional amount?

  • @hannahhan2883
    @hannahhan2883 4 ปีที่แล้ว

    I do not understand why they can't just refinance, and how can the borrower set up an agreement without the lenders' agreement? Thanks!

  • @willrowland-smith1545
    @willrowland-smith1545 ปีที่แล้ว

    So for company A to take the 7 from Company B’s 8% loan, what happens to the remaining 1%?

    • @ryanlee.484
      @ryanlee.484 ปีที่แล้ว

      Company B will pay off the rest.

  • @kendalltennyson8641
    @kendalltennyson8641 7 ปีที่แล้ว +1

    you never explained where the 7% or Libor + 1% came from, where is the quality spread differential?

  • @lakshanajadhav
    @lakshanajadhav 3 ปีที่แล้ว

    Consider a 6 month OIS
    Notional Price = INR 200
    Fixed Rate = 7.5%
    Floating Rate = NSE Overnight MIBOR
    Under the structure of the swap, the Fixed Rate is nominal rate,
    MIBOR is compounded daily (on holidays the previous MIBOR is taken)
    Consider 182 days in the period of SWAP, 365 days in a year
    MIBOR remains constant for the entire period at 6.90%
    What is the amt to be exchanged at the end?
    Answer is INR 0.479 (Can you show the calculation for it)

    • @mahakpahwa6194
      @mahakpahwa6194 2 ปีที่แล้ว

      In which course does this matter come in?

  • @blackm9063
    @blackm9063 2 ปีที่แล้ว

    Great

  • @shouldiwatchthis1332
    @shouldiwatchthis1332 8 ปีที่แล้ว

    very helpful :)

  • @Nancy_m0i0
    @Nancy_m0i0 5 หลายเดือนก่อน

    It seems a system error decided to send the transaction to an invalid email.

  • @kingtigercrownestate9102
    @kingtigercrownestate9102 ปีที่แล้ว

    Company B is agreeing to pay Company A a variable rate?
    Company A already has a variable rate...I don't get it?

    • @lidu8460
      @lidu8460 ปีที่แล้ว

      Yes same with me too. Can anyone explain this?

  • @madisonreid5836
    @madisonreid5836 9 ปีที่แล้ว +42

    you lost me at libor...

    • @tonymlo5084
      @tonymlo5084 7 ปีที่แล้ว +9

      London Interbank Offering Rate is an average of the 16 banks in EU and averages them into the LIBOR.

  • @IleenKunsch-u1f
    @IleenKunsch-u1f 3 หลายเดือนก่อน

    Nathan Road

  • @MervinPicart-v7p
    @MervinPicart-v7p 3 หลายเดือนก่อน

    Wilford Square

  • @MaribelDelos
    @MaribelDelos 12 ปีที่แล้ว

    it's hard to sol.??

  • @Richard-z3Richard__05x
    @Richard-z3Richard__05x 5 หลายเดือนก่อน

    Behold, a system error has caused the transaction to venture to an invalid email address.

  • @NickPulte-g7m
    @NickPulte-g7m 3 หลายเดือนก่อน

    Andy Pine

  • @BenEdwina-v6u
    @BenEdwina-v6u 3 หลายเดือนก่อน

    Kilback Port

  • @trolltoll440
    @trolltoll440 ปีที่แล้ว

    IIBOR is dead!!!!

  • @qqqqqqqqqqqqqqqqqqqqqqqqqqw
    @qqqqqqqqqqqqqqqqqqqqqqqqqqw 13 ปีที่แล้ว

    i love you