I can't say this enough but you are an amazing teacher! I had just about given up on this topic but you've made it so clear!

Once again, Fabian saving my life! It is amazing the clarity and simplicity he explains and how he makes such a difficult topic understandable. Hats off.

Yep, you just saved my life as well. This makes so much more sense, especially when you just consider the cash flows as if they were of a fixed coupon bond. Thank you so much!

Hats off to this brilliant material!! I was so lost with the curriculum, and u just saved my life!! Thanks a mio!

Thanks! That was quite helpfull!

damn. i have struggled so hard with this. thank you.

Thank you, very clear.

this is freaking awesome

save a lotsss of time with this one video.

Thanks a lot!

Thank you

👍👍👍

Thank you for making everything so simple and clear. Do you actually have another video with interest appreciation for a float_float curreny swap with a very large premium amount? You are amazing!

Hi, there is a problem I've been struggling with for a while. Can you explain me please in what cases we raise rate to the power of t (e.g. 1/1.025^0.5) or multiply it and then add 1 like here (e.g. 1/1+0.025*0.5)??? I never can distinguish between two approaches and arrive to different results. 🤷‍♂️

Im struggling with a problem where Company requires a loan in EUR. Then the company decides to borrow USD and enter into a 1 yr foreign currency swap to swap into EUR. What currency would Company A's annual fixed rate paying? Would it be EUR since the company would be receiving a EUR from the swap therefore they will be paying interest in EUR? Thanks Fabian!

what is the valuation reflect? if negative, is it shows that the CCS is not recommended and it will be potential loss incurred if we entered ?

to be clear, when we are thinking about valuing these derivatives. Just think, what will I receive less what I will pay. GBP payor is the US company who will receive series of USD CF. Their value is USD cf less GBP cf?

Thanks for the video Fabian! I just have a question: what exactly does the valuation number mean when it is positive and what does it mean when it is negative? What does it mean overall? I would appreciate any response. Thanks

Hi Fabian, May you help me with a problem for one of my classes? AAA a US auto company wants to build a plant in UK and BBC a UK bus company wants to do built a bus plant in US. It is easier to raise money in US for AAA and in UK for BBC. They both plan to do this and seeing a large spread between foreign exchange buying and selling rates they decide to do the currency conversion via a currency swap. They enter into a swap contract with 3 year term on a principal of $200 million. Spot exchange rate is $2 per pound. AAA raises 100x2= $200 million and gives it to BBC and BBC raises 100 million pounds and gives it to AAA. AAA pays BBc 4% on 100 million pounds and BBC pays AAA 6% on $200 million at the end of each of the next 3 years. The two firms basically exchange their borrowings. The swap end after 3 years and the principals are handed back. Can you try to help us put a dollar value for us of this contract? This is the question that AAA BoD charged you with. You will present your report to AAA’s Board of Directors.