Bond Videos

Professor Shiller discusses the effects of the financial crisis and the failed policies of investment banks.  He walks through the wreckless actions taken by investment banks, their effects on the secondary market, and the intervention by the federal reserve to soften the landing of the crisis. 

The speaker provides a history on inflation.  He suggests that all wars are inflationary in nature.  If the government engages in deficit spending, it creates conditions for inflation; however, when the deficit spending is made on internal project such as road and bridges, this will eventually work itself back into the economy.&nbsp

The speaker discusses the valuation of an interest rate swap.  At the time the counterparties agree to swap, the value of the swap is nearly 0; each counterparty expects the benefit to change over time as rates change.  Each leg of the swap can be treated as a bond, one fixed and one floating.  Therefore, th

The speaker discusses how "money" is created in a fractional reserve banking system. He defines various measures of money supply, M0 and M1 and discusses the multiplier effect.

The speaker discusses the rationale for the Fed setting a target rate versus setting a money supply target. 

The speaker talks about how high levels of leverage contributed to the credit crisis.  Once the housing market moved lower, there was a move to deleverage by banks and hed

Video explaining how Lehman's brothers collapsed as a result of the dreaded credit default swaps.

The speaker covers the basics types of bonds, how to calculated the price of a bond and the interest rate risk inherent to a bond.

The speaker covers basic fudamentals of bond investing.

The speaker discusses valuing a credit default swap.  The speaker discusses how he is solving for CDS spreads and that the probabiity adjusted present value of the expected payments needs to equal the probability adjusted present value of the expected payout from the protection seller.

The speaker presents the concept of a credit default swap basket.  It is very similar to a CDS but the reference asset consists of a basket of debt obligations.

Steve Kroft from 60 minutes takes a deep dive into the credit default swaps market and discusses how this financial instrument has added fuel to the financial fire on Wall Street.

The speakers continues his discussion of credit default swaps and discusses the systemic risks that are inherent to these securities and also why he considers them financial weapons of mass destruction.

In this Part 1, the speaker provides an introduction to credit default swaps, or CDS.

The speaker provides a detailed overview of credit default swaps.  A CDS is an insurance contract which is purchased by the holder of a bond or security to protect them against a credit default.