The difference between bonds, notes and bills
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- เผยแพร่เมื่อ 8 มิ.ย. 2024
- So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Paddy Hirsch explains. #MarketplaceAPM #EconomicExplainers
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This video still has value 14 years later! Thank you!! Now I need a drink Lol
Very simple language, I understood them quickly. Thank you
I still had trouble
A hidden treasure in TH-cam.May this channel continue till infinity.
"and frankly.. very badly, needing a drink" - That made me laugh! :)
Awesome explanation!
I seem to remember him leaving most of his videos on that note. I might wrong it has been awhile since I watched them.
Thanks, this is 2020 March19. And your words are ringing so true...."almost certain there will be liquidity, almost certain the USA economy will be strong"....wait! Oh shit, we have a problem Houston!!!
Here in 2024 Bidenomics is great!!! 😐
I just love your fast-paced teaching methods. Absolutely brilliant!
Thank you for your video. I'm majoring in finance at the moment and the way my lecturer explains it is so confusing. This has made it so much easier for me to understand. So thank you :)
Crappy finance professors seem to be the third certainty in life (after death and before taxes :)
Uh, return = ( 98 - 100 ) / 98 X 100% = -2 / 98 X100% = - 2.04 % error = .0004 X 100M = $40,000 wath the math
You were probably needing a drink to start off with! 😉
If you really want to piss off your professor, show how gov't debt gets issued at the NPV (net present value) of the currency, and then how the creation of the debt itself, the debt the recipient just bought, through the cantillion effect, results in the gov't paying you back pennies on the dollar compared to what you paid for (currency debasement). Then ask how exactly gov't debt is different from a giant Ponzi scheme. They love that. If they try and counter by referencing CPI and GDP numbers, let them know you have a bridge in Brooklyn you'd love to sell them if they believe those numbers.
You the man Paddy Hirsch! Thank you for making these
Thanks! Your explaination is very clear for those of us that know nothing about this topic and want to learn more.
Nice video thanks 🙂
thank you for these lessons. I learned alot! please keep making them.
You are so talented in explaining things in a simple manner
THANK YOU for this video! It was very helpful!
Wow what a wonderful, informative, and clear detail video - thank you!
Thank you very much. Today i simply understand the difference between bonds, notes and bills. I am Janagan from Sri lanka
Well explained and easy to understand. Thanks!!
This is one of the best websites for financial advice. The more you learn about finance the more you wish you were just born to rich parents!!!
thank you I'm learning a lot by the way you explaining and breaking thing down..
Thank you for explaining it so simply!! :)
Hilarious ending!
Thank you
This was a really informative video, thank you!
superb explanation. thank you.
Thank u for ur explanation, u make it so much easier to understand 👍🏾
excellent to the point and easy to understand thank you
you are awesome teacher !!! thanks for sharing info ......
Me still watching this on 04/19/21 - good explanation
Hahaha! And Me watching this in the final approach to *Q4* *2022* to see if it's still worth it to buy anything from our gridlocked Government. At least we're still holding out better than _The EU._
Thankyou for the succinct explanation!
Great explanation! Thanks!
Awesome videos. Getting a crash course in economics!
Thank you, love your lessons..
The ending is priceless 😂😂🔥
Thanks. That's very infornative.
All your videos really helped me
They leave me thirsty for another drink of a video
Very Simple Language anybody could understand, thanks for your videos. Would love to see #marketplaceAPM adding more videos
Thank You for teaching this
superb!! very clear explanations...
thanks for your great Videos... my professor actually show one in the class. please keep up your great works!
Well explained. Thank you.
excellent presentation , Great job .
easy n well explained
Very well explained :) Thank you :)
Love this video, helped me more than the Kaplan videos for sure.
Awesome mate!!
Even a simple simpleton like me can understand you. Thanks.
Thanks for watching!
@@marketplaceAPM Are you from northern ireland? sounds like it...
Fantastic explanation
Wow from Zimbabwe this is great big mind
It was great explanation!
Great explanation, thank you! 14 years later does not matter! :)
really great video
Great explanation on #bonds thanks 👍 #money
Great video
Very clear
Nice explanation sir.
Thank you for the thorough explanation regarding the bonds, notes and bills. Is there a minimum amount regarding the bills issue by uncle Sam.
excellent
This guy is awesome.
thank you brill video
thank you
Good video. I put my savings into metals but this is always good to know for short term money parking
Love this guy
Nice video!! 😎
this was good
Well done. But where do the bonds trade in the market place? How do I actually sell a physical bond that I hold ? Where do I store the bond ? Is it insured? Is it all online ? Sorry for all the questions trying to learn here...
Adam Metzker Good questions. There is no exchange, like a stock exchange, where you can go to find a market for your bond. Bonds are traded "over the counter" . You need to find a buyer, or a broker who can connect you to a buyer. You can buy bond insurance from a bond insurer. You can get a paper certificate for your bond and keep it in a lockbox. Or you can use a brokerage and keep it in electronic form.
Does these protect u from hyperinflation? Thank u.
Well explained, even I got it
I love this guy.
Me too!
Thank youuuuuuu
how do i calculate the interest i will earn on a 3 month treasury bill of 5000 with 21% interest rate?
Great video. I just started investing into the stock market and bonds this year.
You better find a job
but that last line tho hahahahha. thanks for this!
What are the possible reasons a public traded company issue Senior notes?
what happens in a recession like we have in 2008-9? Are the bonds still save?
At 5:00 mark, with this recession coming in 2023, I feel like the author of this video will be saying the exact opposite
Mathematic is about numbers and rules. The same can be said about managing money.
@jrewert Sorry what is ''bullion''?
Thanks for the video. It was informative and to the point. The only eyesore (for me) was the 30 year Treasury bond being priced at 2% and the 7 year notes priced at 3.5%. Generally the higher the duration the higher the yield. (Shouldn’t our default assumption be a rising yield curve?)
I believe he was just throwing out numbers as an example!
I have the same question. If in getting better return on a shorter time period then why would I choose the longer bond
Excellent video. Can you please explain how does the government pay back the securities, that too with interest? What is the source of the government's income? Thank you.
Hahaha. A 4 color green printing press, Baby.
@@designertjp-utube lmao
is the interest on these taxable?
Very nice video. Where is the guy from?
Is there any way at the moment that the government can get a grant from the Fed that has no debt attached to it?
Patty, you’re awesome but you always leave me very much needing a drink😏
Cheers!
What was the last part about?
He threw the marker
Who in the hell thinks buying debt from a Government that's now about 20 trillion in debt (not even including unfunded liabilities) is "secure"? Especially considering they now have to borrow more to pay off these debts from borrowing before. Either way, great video, I just discovered your channel, looks like there's a lot of great info. Keep it up!
Ha! Started writing this comment before the end of the video, looks like you mentioned my concerns.
+stayanddrown Its because the Government cannot fail...if the government fails the entire system fails...Thats why financial institutions are taking risks, because government bails them out , because they are a necessary entity.
If the entire economy collapses, we might see world war 3 because war is the only way to destroy debts owed, thats what happened in world war 2.
@@kungmaster great response!
Sorry I am ignorant to all this I have a document from 1925 that says Bond on it from my great grandparents wondering if its worth anything or its just a document ?
Could someone please explain more about the interest? How is it fixed for bonds and notes but not bills? If you are buying it at one price and selling it at another, isn't the interest always fixed??
A bond and a note over a 10 year period and a 5 year period you will get a regular coupon say every 6 months or a year. When you buy the bill because the period is less than 12 months or 6 months or whatever you will get your return by buying the bill at a discount, because your not going to get a coupon within that period. Once the bill matures at face value thats your return.
Problem is the Amount due the CC Account is really due the Minor / principle / Estate account. The CC holder isn't the debtor, The CC Account holder; the Bank is. New money was created when the bank applied the credit to the credit card purchase. The bank is liable to repay that public debt (application of credit) not the card holder.
Why is the interest rate for a bond less than a note?
Hey Paddy, but if things are that simple, why I should take bonds over notes? I could get my capital sooner and at a higher interest rates: am I wrong or it violates somehow the first principle of financial math? A dollar today worth more than a dollar tomorrow (for that you should pay me something for the disposal).
Would be great to know why! Thanks! ;)
He just made up numbers. In reality (when I typed this), the most recent 7 year note issued at 1.75% and the most recent 30 year bond issued at 2.5%.
Nanofuture87 could you help guide me through the process are you doing this too?
I agree. You are better off buying toilet paper than bonds, notes and bills. Maybe consider buying copper also..
better do an update on this one on the year of 2019 lol
@chillercm if the economy kicks off, we'll likely get rampant inflation, so the commodities would be strong still.
I love you.
Hi,
Its clear what is bond and bills and how they are making money on it. Then what is govt securities and how they are making money on it?
👍
If bonds are constantly being traded on a very liquid bond market, doesn't their price fluctuate? So when you sell, you may actually get less (or more) than you paid for them!
fixed rate
Watch all the videos waiting for the end...
What about other countries treasury bonds? 😬
Probably going to need a drink soon lol
So basically there all the same thing just different changes into one another with time.
I like treasury investments because there's no state tax applied to them only federal
Does this seem like a good investment for a younger individual, sure it is safer than the stock market, but it doesn't seem like it's much better than putting your money into a bank with an interest rate similar or greater than the rate the bond/bill/note goes for. If anyone has any information be sure to respond, I'm interested in hearing feedback.
Well if you can get a better interest rate from an FDIC insured bank deposit you would be better off. Depends on if you are interested in locking in a rate for long term.