I found your channel yesterday because i was studying for my financial management mid exam, those videos are very helpful. But I was a bit sad because I saw your last upload was 7 months ago, and now you're back so i'd like to learn more, thank you for your contents 🙂
Thank you for the kind words! I was overloaded with consultancy work, and family obligations, for a few months so had to take a break from making new videos. Happy to be back!
Glad it was helpful! Yes, both large corporations as well as smaller ones (even startups) might issue them as well. With the interest rate for a stable and more predictable company with a lot of assets obviously being much lower than that for a more volatile small company. I have invested in both types, made good returns on average, but also got my fingers burned a few times (luckily I never put too much money on any one stock or bond, so it didn't bankrupt me).
Hello Prashant! Think about the bond example in the video of 4 years with 6% interest, where you put in 1000 Euro upfront, and get paid back the interest along the way, and the principal amount of 1000 Euro as a bullet payment at the end. If you believe today that 6% interest is a fair compensation for the risk that you are running, but tomorrow a similar offer comes along with 7% interest (and otherwise same conditions but same risk profile), then you probably go with the second offer rather than the first. The issuer of the first bond could either increase the interest rate to match the second offer, or decrease the upfront payment (to for example 950 Euro) to be competitive. That's what I mean with "decreasing the bond price". Hope that makes sense!
How do we check individual bonds that particular insurance companies buy? I could only see groups of bonds such as AAA, AA , etc in their annual report. How do I check each bond?
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Welcome back! I hope you're doing well
Thank you very much, Surya! It was about time. 🙂
I found your channel yesterday because i was studying for my financial management mid exam, those videos are very helpful. But I was a bit sad because I saw your last upload was 7 months ago, and now you're back so i'd like to learn more, thank you for your contents 🙂
Thank you for the kind words! I was overloaded with consultancy work, and family obligations, for a few months so had to take a break from making new videos. Happy to be back!
Thank you for being back! You were terribly missed!
Thank you for hanging in there during the long wait. 🙂
I am so happy, you're back!
Me too! 🙂
I like 👍how you make these concepts easy to understand
Wonderful to hear that! Enjoy your investing journey.
Thanks for this explanation between stocks and bonds 👍🏻 I always thought that bonds were only issued by governments before watching this 😅
Glad it was helpful! Yes, both large corporations as well as smaller ones (even startups) might issue them as well. With the interest rate for a stable and more predictable company with a lot of assets obviously being much lower than that for a more volatile small company. I have invested in both types, made good returns on average, but also got my fingers burned a few times (luckily I never put too much money on any one stock or bond, so it didn't bankrupt me).
Hi, really enjoying your content so far. Question: How does the interest rate going up decrease the bond price and vice versa? Thank you
Hello Prashant! Think about the bond example in the video of 4 years with 6% interest, where you put in 1000 Euro upfront, and get paid back the interest along the way, and the principal amount of 1000 Euro as a bullet payment at the end. If you believe today that 6% interest is a fair compensation for the risk that you are running, but tomorrow a similar offer comes along with 7% interest (and otherwise same conditions but same risk profile), then you probably go with the second offer rather than the first. The issuer of the first bond could either increase the interest rate to match the second offer, or decrease the upfront payment (to for example 950 Euro) to be competitive. That's what I mean with "decreasing the bond price". Hope that makes sense!
@@TheFinanceStoryteller Yes I understand now. Appreciate your explanation
Happy to help!
Thank youuuu :)
You're welcome! It's good to be back.
@@TheFinanceStoryteller keep it up , vids are honestly perfect size and no clickbait but just content description - you have teach us so much 🥰
@@8aemi Thank you very much for the kind words. That certainly helps to stay focused and inspired.
bedankt
Graag gedaan!!!!
How do we check individual bonds that particular insurance companies buy?
I could only see groups of bonds such as AAA, AA , etc in their annual report.
How do I check each bond?
I would assume they are required to show their exposure by asset class (group of bonds), but not on the individual line item level.
Ha, we can make a guess game what share have you shared here 😂💪
That is a great idea. But only viewers without insider knowledge can participate. 😉
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