I love that you decided to sport a bow tie for the bonds lesson.
@based_gigachad6094 Жыл бұрын
I really wish he still did this type of content, this is way better. This guy is really smart and I love this stuff
@RealWajahat4 жыл бұрын
Another great episode. 4 sessions done...
@jevohn98983 жыл бұрын
Thank you for making these videos
@mhgscrubadub99172 жыл бұрын
Thank you professor Boyle
@Gogglesofkrome3 жыл бұрын
another amazing contribution to financial education on the internet. There is no expression that would reasonably portray just how much this has helped those who are willing to learn.
@williamt104 Жыл бұрын
Well said, even after two years
@GrumpyCat-mw5xl Жыл бұрын
Agreed
@msra9yw46 ай бұрын
Thanks Patrick! Very helpful
@surething1192 жыл бұрын
Rare value everyday! I feel soo lucky for finding your class Mr. Boyle!
@peterbradshaw80183 жыл бұрын
Learnt about the three Cs from Jean Tirole's book Theory of Corporate Finance .
@peacebywisdom3 жыл бұрын
It's about Bond. Investment Bond 😁.Thanks Patrick. Love your videos.
@SusieAspen3 жыл бұрын
Thanks for explaining the Bond Ladder; it's perfectly logical. I needed you to point it out, however.
@ianflem64892 жыл бұрын
Thank you sir! I learned more in one hour than my entire life.🙏
@amsalmeron3 жыл бұрын
Thanks you for the class!
@chijiokekennedyanoka48443 жыл бұрын
thanks for the class
@bagholderwithaplan3 жыл бұрын
Enjoying the series so far
@leverageearnings83873 жыл бұрын
The least seen videos always bring the highest quality of information. Thank you Mr Boyle !
@emmanuelv97463 жыл бұрын
Very good content enjoying how bond works. Thank you Patrick.
@minma022622 жыл бұрын
I love you. You are amazing.
@kristopherrobin40012 жыл бұрын
Nice
@yoginelson Жыл бұрын
Patrick thank you for teaching me new info and refreshing my memories of the old.
@robertocanales12012 жыл бұрын
Thank you very much 😑🙏🏼
@joshuadias24684 жыл бұрын
Hi Patrick, in your example at 37:00 bond valuation you mentioned a 5% bond where the next day the interest rates drop to 4%. So we would value the bond such that the 5% coupon would equal 4% interest on the bond. My question: **Why would someone buy the 5% bond vs the 4% bond if the interest you are getting on your capital is still 4%?** I came up with 2 scenarios. [a] If the amount to be invested perfectly fits a multiple of the 5% bond or a combination of the 5% and 4%. [b] If you want a bond that matures at the specific maturity date of the 5% bond.
@RealWajahat4 жыл бұрын
Maybe because the new investor feels the interest rates would drop further, increasing the value of the bond thus profiting off the bond value difference?
@joshuadias24684 жыл бұрын
@@RealWajahat After the initial drop in interest both bonds will act the same depending on maturity.
@Wa7edmenalnass3 жыл бұрын
No if you buy 5% interest bond that means it is fixed rate so it will be 5% Intel it hits maturity, why would you buy 5% instead of 4% well because it bays more.
@joshuadias24683 жыл бұрын
@@Wa7edmenalnass Let me explain what my question actually was. Lets say I bought a bond of par value $100 with a 5% coupon rate. The FED announces a rate cut of 1% the next day and with immediate effective all new bonds will be at 4%. This reduction in interest by the FED will cause all Bonds in the market with a higher interest rate to trade at a higher value. Hence the $100 bond which I bought which paid a $5 coupon will now trade at $125 instead of $100. The coupon will remain the same $5 but effectively is only returning 4% as the value of the bond is now $125. The question : If I want to buy a bond now, I can buy a $100 bond with $4 coupon or a $125 bond with a $5 coupon. But the actual yield/cash flow is still 4%. Why would someone chose one over the other??
@Wa7edmenalnass3 жыл бұрын
@@joshuadias2468 Usually it sells at a discount for example at 115 or 120 and if it got to 125 that means invesors expect interest rates to go down more. This matter depends on how you look at markets are they efficient or behavioral.
@DREAMERS5283 жыл бұрын
"a bit of a conflict of intrest" such a nice way of saying blatant corruption 😂
@denisef74142 жыл бұрын
My favorite class so far, thank you Mr. Boyle!
@hfhfhf113 жыл бұрын
Please tell me how CAN I work for you? Happy to work for free because the value to learn from you would definitely worth it.
@kp2718 Жыл бұрын
54:10 - why prefer owning a callable bond then, if the rates are going up? It's not like anyone is going to buy it out?
@ilililililili5636 ай бұрын
i also tought about it and i either dont understand or smth is wrong with that example. The thing of callables was supposed to be more %, right? So it makes sense to want to have callabe over not-callabe in that case only if callabe was not 4% but more than 4% (due to it being callabe)? Were we supposed to assume that in callabe case its actually not 4% but more due to it being callable and make decision based on that?
@square_waves82633 жыл бұрын
I guess I just don't understand the ratings agencies in practice. Why don't the market participants just do this analysis themselves?
@thomasa56193 жыл бұрын
I presume as an “unbiased third party” If I’m required by my organisation’s constitution to use AA rated instruments, you can’t just let me self rate them?
@square_waves82633 жыл бұрын
The problem with that, at least as far as I understand it, is that the ratings agencies aren't unbiased third parties, they are clients of the guys selling the bonds.
@thomasa56193 жыл бұрын
@@square_waves8263 yeah that’s why I used the quote marks.
@leonardotansil16433 жыл бұрын
Thank you very much for the great explanation!
@riankashyap19963 жыл бұрын
Pls cover portfolio management for short options where goal is to profit from theta decay portfolio. Payoff is non linear so how to manage risk and optimize capital allocations ???
@patrickhoulihan554 Жыл бұрын
Such a great series. Love it
@screwball10103 жыл бұрын
How is this series not behind a pay wall?
@julkiewicz2 жыл бұрын
I guess it doesn't say how to get rich quickly :)
@leverageearnings83873 жыл бұрын
Gold
@Balance3rd3 жыл бұрын
So what your saying is I should buy Tesla calls
@neues36913 жыл бұрын
🤔
@peterbradshaw80183 жыл бұрын
The Bond Book by Annette Thau was my introduction to bonds.
@screwball10103 жыл бұрын
Best worst jokes on YT
@thomasa57223 жыл бұрын
Hi Patrick, Great stuff. Did you post the PPT anywhere?
@ss0320103101033 жыл бұрын
On his Pateron page. Link is in the description
@neues36913 жыл бұрын
The fact that the rating agencies get paid by the companies giving out the bond sounds like a massive issue.
@CarlAlex2 Жыл бұрын
Did you omit to mention bonds where the issuer has the option to extend them or did I miss it? I once held such a bond where I got 2 extra years of ok interest after the original maturity date. I also note that you didn't mention currency risk. I once got whacked by a very surprising devaluation of the Norweigian crown shortly before the maturity date of a bond in that currency (which isn't one I pay my bills in).
@mrkasirye Жыл бұрын
Thanks for this, very thorough.What's the name of your book on Fixed Income? The link in description is not working.