Home
Search results “Government bonds spreads”
Explaining Bond Prices and Bond Yields
 
06:44
​In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds. ​Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond 1.When bond prices are rising, the yield will fall 2.When bond prices are falling, the yield will rise - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 50183 tutor2u
Italians are all talking about the bond spread
 
02:24
Read more at https://on.ft.com/2CMngNG 'Lo spread' - the yield gap between Italian and German 10-year bonds - is the hot topic of conversation in Rome after the populist coalition government promised a spending splurge ► Subscribe to FT.com here: http://bit.ly/2GakujT ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 6528 Financial Times
Introduction to the yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
09:57
Introduction to the treasury yield curve. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/relationship-between-bond-prices-and-interest-rates?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-bonds?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 366929 Khan Academy
Trader's Edge: Trading the US Treasury Yield Curve
 
06:11
The U.S. Treasury Bond market is the largest and deepest government debt market in the world. Individual U.S. Treasury Notes and Bonds provide important benchmark yields at various points along the yield curve. Trading the slope of the U.S. Treasury curve using futures contracts involves the execution of an inter-commodity spread. One very common and widely quoted yield curve spread is the twos versus tens yield spread. This spread compares and reflects the difference in yields between the current U.S. Treasury 10-Year note and the current U.S. Treasury 2-Year note. Watch this video to learn more about this spreading technique. Presenter: David Gibbs, Director Education CME Group Subscribe: https://www.youtube.com/subscription_center?add_user=cmegroup Learn more: https://institute.cmegroup.com/ CME Group: http://www.cmegroup.com/ Follow us: Twitter: http://twitter.com/CMEGroup Facebook: http://www.facebook.com/CMEGroup CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.
Views: 1724 CME Group
The Effect of Interest Rates on The Treasury Yield
 
19:03
Let us help you become the smartest investor in the room. Sign up by clicking the link below and get our 100% free E-book now: http://www.fearlesswealth.com/a-better-choice-yt/ Don't Miss Weekly Updates from RC! Click Here to Subscribe: https://www.youtube.com/channel/UCpeNTBaLA3xmrKSl7f0tWTA ===================================== It is Independence Day this week and I wanted to talk about how a lot of what independence is about is thinking for yourself, point out things you know that are not right. Sometimes this means you have to be on your own or at least with a small group that is going up against something large. And if you’ve been following me, you know that I’m a firm believe that the long only Big Box approach worked great in the 80’s and 90’s, but just hasn’t been working since 1999. Below you will find seven charts of different treasury yields. Each chart goes back to 1982. In each chart there will be a red dot – where the stock market peaked in 2000 and 2007. And a green dot – where the stock market bottomed after those two recessions. You’ll notice some interesting similarities in all of the 7 treasury yields charts. Also the Fed has less and less control over treasury yields the further and further out you go. So in our examples below the Fed has the most control over the 3 month yield and the least over the 30 year yield. The first chart below is of the 3 month treasury yield. You can see when the peak in yields happens in the early 1980s. Remember that The Feds are the ones that control this yield. The red dots are when the stock market peaked in 2000 and 2007. Notice how much yields fell during those times. In the 2000 Dot Com recession yields full from around 6% to eventually 1%. Similarly in the 2008 recession yields fell from about 5% all the way to 0%. In both recessions the yields fell 5%. So what do you think will happen to this yield when we have our next recession? If we have a recession right now and the Fed drops the yield 5% we’d have a -4% yield on the 3 month treasury. The next chart below is the 6 month treasury yield. You probably notice right away that the two charts look very similar. During each recession shown on the chart the yields drop about 5%. The biggest difference between the two charts are when rates started rising. You can see that the 6 month treasury yield began rising about two years before the 3 month yield. This is because the Fed has less of a reach on the 6 month yield. The point of showing you these charts is that the yield has a lot higher to go before we get into the next recession. It also can show you how absurd the behavior of the Fed has been considering the flatness of the line. This next price chart is of the 1 year treasury yield. Again you can see that the yield peaked right around the same time that the stock market peaked. But right after the stock market bottomed in 2002 the 1 year yield still continued to fall right after. You can see the similarities between the three charts. After each recession the yields dropped about 5%. Notice how steep this yield increases when the stock market goes up. Something that people forget is that yields historically move in the direction that stocks do. The next chart is the 2 year treasury. Again very similar. When the Dot Com recession happened the yield fell 6% and then during the 2008 Global Financial Crisis 5%. As you move further out on the yield curve the Fed has less control over it. This is interesting because after the yield bottomed in 2011, it has been steadily increasing on its own. The Fed didn’t start raising interest rates until December 2015. But the two year treasury which is controlled more by the public and the market, started moving up way before the Fed started moving their interest rates up.
Views: 1401 Fearless Wealth
Understanding the yield curve
 
02:36
You read about it a lot in the business pages, and it sounds super complicated. But the yield curve is dead easy to read. Especially if you've every played chutes and ladders (or, snakes and ladders in the UK). Paddy Hirsch explains. Subscribe to our channel! https://youtube.com/user/marketplacevideos
Views: 59685 Marketplace APM
January 2019 Data Update 2: The Bond Market Message
 
10:58
In 2018, the US bond market was in sync with the US equity market, afflicted by the same fears and revealing the same patterns The US 10-year treasury bond rate, which started the year at 2.41% and rose as high as 3.24% in early November 2018, dropped back as worries about economic growth mounted. A flattening yield curve reinforced that message of lower growth. Looking to the next year, the gap between the ten-year bond rate (2.68%) and an intrinsic risk free rate (inflation + real growth for 2018 = 5.54%) is high, suggesting either that bond investors are being too pessimistic about future growth, or that growth will drop dramatically. I believe that we will split the difference, with higher T. Bond rates by the end of 2019 and lower economic growth in the US in 2019 than in 2018, albeit not a recession. Finally, the price of risk in the bond market (default spreads) rose in the last quarter of 2018, mirroring the rise in equity risk premiums. Investors in both stock and bond markets seem to have reached consensus that growth will slow and that there is more to fear. That said, they have been wrong in the past and we will see what 2019 delivers. Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/DataUpdate2for2019.pdf Datasets: 1. T. Bond rate versus Intrinsic Riskfree rates - 1953 to 2018 (http://www.stern.nyu.edu/~adamodar/pc/blog/IntrinsicvsActualRates2019.xlsx)
Views: 8083 Aswath Damodaran
Fiscal Policy - Bonds and Yield Curves
 
07:17
Fiscal Policy - Bonds and Yield Curves - An understanding of why bonds and yield curves are important for an economy and for a government when enacting fiscal policy
Views: 12307 EconplusDal
What Is The Interest Rate On Government Bonds?
 
00:46
This makes treasury current interest rates. Us 10 year government bond interest rate is at 2. Today (3 22 2012) the interest rate on ee series savings bond 3 feb 2016 treasury yields keep sliding. Coupon interest and yield for etbs treasury bonds how to earn 3. Rates are mainly determined by the price charged lender, risk from get updated data about us treasuries. But amazingly enough, u. When i read this statement, thought it was odd. Us 10 year government bond interest rate ycharts. The 8% government of india bonds livemint. Latest bond rates, interest libor and interbank rates ft. Interest rates long term interest oecd data. Average interest rates on u. Rates & bonds bloomberg. Negative interest rates a third of all government bonds are quartz. 5% on a us savings bond forbes. Show is the interest rate on a treasury bond determined? Interest rates and your investments investopedia. If you are just remember anything that increases the demand for long term treasury bonds puts downward pressure on interest rates (higher higher refer to government maturing in ten years. Graph and download economic data from jan 1957 to oct 2016 about india, securities, bonds, government, interest rate, interest, rate at karvy value, chose a list of top tax free bonds in india with coupon & last traded price, etc. 13 apr 2016 other comparable products such as fixed deposits from banks like sbi and hdfc bank pay a maximum of 7. The incredible shrinking interest rate febtreasury bonds cbk central bank of kenya. Fixed rate from jul 2017, inflation effective 01 jun 2017. List of best government bonds in india bond 10y calendar average interest rates on u. Sthe files listed below illustrate the average interest rates for marketable and non securities over 15 apr 2015 explore difference between bond coupons, what determines current yield on debt instruments, why treasury prices most investors care about future rates, but none more than bondholders. The bonds will bear interest at the rate of 8. Government of india savings bond make a comeback. Under income tax act, the by interest on india 10y increased 0. Bond rates look shockingly high when compared to yields for other developed most treasury bonds in kenya are fixed rate, meaning that the interest rate determined at auction is locked entire life of bond. Rates rsa retail savings bonds. 19 Government of india savings bond make a comeback. Find information on government bonds yields, muni and interest rates in the usa 7 jul 2016 if you were to buy, at random, any bond, there is a one three third of global debt now has negative latest international benchmark treasury bond rates, yield curves, spreads, interbank official coupon rate set when first issued by australian are medium long term securities that carry an annual fixed over life 22 mar 2012 source us dept. Feb 2017 they carry an assured interest rate of. Bonds infrastructure bonds, bonds market, capital gains interest rates, government securities, for india tax free. Inflation rate inflation linked 5 year bond, 2.
Views: 165 new sparky
The yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
04:16
Annual Interest Varying with Debt Maturity. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/corp-bankruptcy-tutorial/v/chapter-7-bankruptcy-liquidation?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/annual-interest-varying-with-debt-maturity?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 145454 Khan Academy
What is MOB (Municipal-Over-Bond) Spread?
 
01:49
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “MOB - (Municipal-Over-Bond) Spread” The MOB spread is the difference in price between municipal bond futures and Treasury bond futures. The muni futures contract is the "municipal" in MOB, and the Treasury contract is the "bond." When the muni contract is rising faster or falling more slowly) than the Treasury contract, the MOB spread will rise, or widen. Conversely, when the Treasury contract is outperforming the muni contract, the MOB spread will fall, or narrow. To profit from a rising MOB spread, a trader would pair a long position in the muni contract with a short position in the Treasury contract. Even if both contracts went up in price, as long as the muni contract outperformed the Treasury contract the trade would be profitable. Conversely, to profit from a falling MOB spread, a trader would pair a short position in the muni contract with a long position in the Treasury contract. The Treasury contract tracks the price of a 30-year Treasury bond. The muni contract tracks the price of an index of muni bonds. Interest rates are a major cause of shifts in the MOB spread. That is because the Treasury bond tracked by the Treasury futures contract is noncallable. By contrast, most muni bonds are callable. When interest rates fall, noncallable bonds outperform callable bonds. So when interest rates fall, the MOB spread typically falls. Changes in the muni index can also cause of shifts in the MOB spread. The index is regularly reconfigured to incorporate newly-issued munis and kick out older bonds. By Barry Norman, Investors Trading Academy
YIELD CURVE AS A RECESSION FORECASTER
 
05:59
What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ What is the yield curve? The yield curve is flattening in 2018 and if it inverts there will be a recession. What to do? In this article I am going to explain what is the yield curve, what does a flattening or steepening yield curve mean, how the yield curve affects the economy and see whether the current yield curve indicates that we are close to a 2018 recession. What is the yield curve The yield curve is a chart showing the yield on bonds starting with short term maturities to long term maturities. The used bond maturities are from one month to 30 years. What the yield curve is showing is practically the cost of borrowing money over time for the U.S. government in this case. Steepening and flattening yield curve The yield curve can be flat or steep. A steep yield curve is usually at the beginning of an economic expansion. Investors fear future higher inflation and demand a higher return for the long term but the central bank still keeps short term rates low. Thus, the yield steepens. A flat yield curve shows that long term investors are willing to take an equal yield as short-term investors in order to lock in the yield for the longer term. This means they are expecting lower yields in the future. And, historically is has been the case that economic recessions follow a flat yield curve.
Key Things to Know about Fixed Income ETFs | Fidelity
 
03:56
Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 59641 Fidelity Investments
What is happening with risk in the bond markets?
 
08:20
Macro Outlook We take a look at the latest in the bond market and how risk is positioned. Marc Ostwald, Strategist for ADM Investor Services International tells us that there has been a lot of demand for riskier assets throughout this year. ​However whenever there is a set back, the bears in the equity markets rub their hands hoping that it will be the big one, but it never is, bonds always seem to recover. This is primarily due to the low yields, especially in government bonds. However Marc tells us that there have been a series of events this week, which have caused doubt to creep back in the market. The held back Trump corporate tax plans, a dovish ECB, and Japan continuing its QE programme. Continued easy central bank policy was thrown in to question. Technical Outlook Looking at the high yield iShares bond based ETF price, we can see that it is tailing off. We have occasionally had moments of sharp fluctuations; but it has remained in the range established in April. There is a warning signal in there. Moving over to the option adjusted spread for the high yield US bonds, the signs are telling us the same story. However Marc does remind that it is hardly a dramatic move. But he does suggest that the trend is very clearly quite negative at the moment. When dialling in on the high yield charts, Marc takes a look at the US high yield energy chart. The important lesson to take away from this chart is that the last time the high yield bond market led the equity market down; it was due to the energy sector responding the oil price collapse. However now, oil prices are strong. In contrast, the last move down, it is now out performing the rest of it! The spreads in the energy sector are much higher, this means that the risk is far higher also. Moving location, Marc looks at the European high yield chart. For the time being, the Euro denominated high yield average spread is much lower. This posits the question, that if we continue to see higher dollar growth we could see a few people who would look at the tight spreads on Euro High Yield and the fact that you can pick up yield in a conservative part of the market in US treasury's, would I want to hang on to this? Marc signs of by telling us that all of this brings the market in to question, and shows nasty signals for the market. However Marc is confident that we will stay up on the year end. Further Information You can see more from Marc Ostwald on Core Finance by using this link http://www.corelondon.tv/?s=marc+ostwald Core Finance is part of Core London, a TV production company based in Belgravia, London. Core Finance aims to provide its viewers with insightful market commentary, helping investors navigate global financial markets. Making the content provided invaluable to viewers. Our shows are closely followed by fund managers, day traders, retail investors, company CEO's, experienced investors and those new to the financial markets. Core Finance covers all asset classes ranging from currencies (forex), equities, bonds, commodities, crypto-currencies, ETF's, futures and options. Views expressed are solely those of guests and presenters and do not constitute investment advice and are not the views of Core Finance or Core London. See More At: www.corelondon.tv Twitter: @CoreLondonTV Facebook: CoreLondonTV
Views: 353 Core Finance
Trading Bonds and Fixed Income Products at IB
 
01:04:13
Bond investors might be pleasantly surprised with IB’s fixed-income offering. With around 178,000 government, corporate, and municipal bond quotes across its electronic platform, fixed income investors can make use of Interactive Brokers’ low-cost coupled with its range of technology offerings for their bond needs. Join us as we explore some of the tools available to use in conjunction with our broad range of bonds.
Views: 12618 Interactive Brokers
Learn How to Trade Spreads Intra-Day for Lower Risk Trades
 
01:10:56
Introducing Saul Knapp - Certified “The Trading Framework®” Coach and Co-founder of Mindful Traders Saul has 20 years Trading and Risk Management experience. Saul started his career on the LIFFE Floor as a runner and progressed through the ranks to become a trader in the 10yr German Government Bonds or the Bunds as they are better known when he was 18 years old. Most Independent Traders are not aware that over 90percent of business for professional prop trading firms in Europe was and to some extant still is trading spreads and NOT outright positions! Until this day there is still NO information on how to trade with Lower Risk and with the strategies of most Professional Traders. Therefore, we are bringing to you the opportunity for you to listen and learn from Saul as he discusses: · What are Inter-Market and Calendar Spreads. · Why Trade Spreads either instead of outrights or alongside them for more steady income versus outright only! · Who is spreading and what the public don’t know and interestingly not disclosed to them! · How Saul is now capitalizing on the opportunities that Energy Market spreads provide. · The Edge of understanding the Energy Curve! · The Specific Strategies that are time tested and still work today for lower risk and more consistent returns as independent traders
Views: 9317 The Trading Framework
Credit Spreads and How it changes?
 
02:38
Credit spreads are the difference in yield between two bonds of similar maturity but different credit quality.
Views: 1182 Zephyr FP
What is SWAP SPREAD? What does SWAP SPREAD mean? SWAP SPREAD meaning, definition & explanation
 
01:16
What is SWAP SPREAD? What does SWAP SPREAD mean? SWAP SPREAD meaning - SWAP SPREAD definition - SWAP SPREAD explanation. SUBSCRIBE to our Google Earth flights channel - http://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ?sub_confirmation=1 Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Swap spreads are the difference between the swap rate (a fixed interest rate) and a corresponding government bond yield with the same maturity (Treasury securities in the case of the United States). For example, if the current market rate for a 5-year swap is 1.35 percent and the current yield on the 5-year Treasury note is 1.33 percent, the 5-year swap spread would be 0.02 percentage points, or 2 basis points. Often, fixed income prices will be quoted in "SWAPS +", wherein the swap rate is added to a given number of basis points. The swap rate there is simply the yield on an equal-maturity Treasury plus the swap spread. Swap spread became a popular indication of credit spread in Europe during the 1990s.
Views: 226 The Audiopedia
Relationship - Z Spread & Bond Spreads !!
 
10:11
Members :: Treasury Consulting LLP Pleased to Present Video Titled - " Relationship - Z Spread & Bond Spreads !! ".Video would be covering relationship between Z Spread and Bond Spreads. Video is also covering an example of Z Spread vs. Bond Spreads. You are most welcome to connect with us at 91-9899242978 (Handheld) , [email protected] , [email protected] , Skype ID ~ Rahul5327 , Twitter @ Rahumagan8 or our website - www.treasuryconsulting.in
How corporate bonds work - MoneyWeek Videos
 
07:27
If you want to generate a reliable income from your savings, then corporate bonds could be the answer. In this video, Ed Bowsher looks at how they work, how risky they are, and whether or not they’re a good investment for most people.
Views: 5503 MoneyWeek
Betting on Long Term Interest Rates: Bonds
 
04:00
Spread betting on bonds http://www.financial-spread-betting.com/Spread-bet-bonds.html Betting on long term interest rates. When spread betting you can usually bet on short term interest rates or long term interest rates which relate to government bond issues. Government bonds are fixed interest securities.
Views: 440 UKspreadbetting
What is Yield Curve?
 
01:42
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Yield Curve” Shorthand for comparisons of the interest rate on government bonds of different maturity. If investors think it is riskier to buy a bond with 15 years until it matures than a bond with five years of life, they will demand a higher interest rate or yield on the longer-dated bond. If so, the yield curve will slope upwards from left the shorter maturities to right. It is normal for the yield curve to be positive upward sloping, left to right simply because investors normally demand compensation for the added risk of holding longer-term securities. Historically, a downward-sloping or inverted yield curve has been an indicator of recession on the horizon, or, at least, that investors expect the central bank to cut short-term interest rates in the near future. A flat yield curve means that investors are indifferent to maturity risk, but this is unusual. When the yield curve as a whole move higher, it means that investors are more worried that inflation will rise for the foreseeable future and therefore that higher interest rates will be needed. When the whole curve moves lower, it means that investors have a rosier inflationary outlook. Even if the direction of a yield curve is unchanged, useful information can be gleaned from changes in the spreads between yields on bonds of different maturities and on different sorts of bonds with the same maturity such as government bonds versus corporate bonds, or thinly traded bonds versus highly liquid bonds. By Barry Norman, Investors Trading Academy - ITA
Spread between Italian treasury bonds and German bunds reaches new record low
 
02:23
(23 Jul 2012) The crisis over too much debt in the 17 countries that use the euro flared dangerously on Monday. Borrowing costs rose to alarming levels in Italy, which has been caught up in fears that it may soon be pushed into asking for assistance. Italy's economy is stagnating and markets are worried that it may soon not be able to maintain its debt burden of 1.9 trillion (2.32 trillion US dollars) - the biggest in the eurozone after Greece and the world's third largest bond market after the United States and Japan. The spread between Italian treasury bonds and German bunds reached a new negative record on Monday, lowering levels of confidence in Italian debt to where it was in January, despite austerity measures imposed by Mario Monti's government. Monti, who has ruled Italy since November, following the resignation of Silvio Berlusconi, insists that no further budget measures are needed, but that Italy should avoid taking a bailout. There were mixed views on the streets of Rome on Monday. One pensioner thought that Italy was "heading towards stability" while another man suggested that the spread would continue to worsen and that "sooner or later or we will have a war." One analyst suggested that political uncertainty in Italy was having a bad effect on the economic outlook. "Markets do not know what is going to happen when Monti's government will end, they do not know which political parties will struggle in the election to win the electoral vote, they do not even know when the elections will take place," said Nicola Borri, professor of economics at Rome's Luiss university. Borri said that the situation in Spain, where fears that the country is next line for a full-blown government bailout have intensified, was also having an effect on Italy. Madrid's borrowing costs on its 10-year bonds - an indicator of market confidence in a country's ability to manage its debt - hit an alarming record of 7.45 percent during morning trading on Monday, pushed up by reports that the country's indebted regions might join its banks in requesting expensive bailouts. Stocks also slid continent wide. Germany's DAX fell 1.7 percent, Britain's FTSE was off 1.7 percent, the French CAC 40 was off 2.0 percent. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/38519e83d2bad6fa834c9ffddb1b6b46 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Views: 30 AP Archive
FRM: Z-spread (versus bond's nominal credit spread)
 
08:20
(Please note: spreadsheet is available on the website). A nominal credit spread is the difference in yields (YTM), which are single factors; therefore, implicitly, the nominal spread compares flat curves. The Z-spread improves by giving the spread that adds across the entire spot (zero) rate curve; if the Z-spread is added to all points on the theoretical spot rate curve, the shift curve discounts the bond's cash flows to a present value that equals the bond's market price. In this way, the Z-spread represents compensation for credit risk across the entire curve. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 25845 Bionic Turtle
Understanding credit spread duration and its impact on bond prices
 
04:02
M&G’s Mario Eisenegger explains the basic dynamics of credit spread duration, a measure of how sensitive a bond’s price is to movements in credit spreads The video highlights the two drivers of credit spread duration; the coupon and maturity. Using some examples, we look at how coupon size and maturity periods impact a bond’s sensitivity to changes in spreads Finally, credit risk and credit spread duration are often mistaken for the same thing. Mario clarifies the difference between them
Views: 3824 Bond Vigilantes
Trading the Forex with Bonds - Part 1
 
07:15
Most investors have no idea how bond or note yields affect the forex or any other capital market. This is unfortunate because they play a major role in what happens to capital flows and can be used to time and manage forex trades. 100% free forex education available from http://www.pfxglobal.com.
Views: 11442 profitingwithforex
What is Z-SPREAD? What does Z-SPREAD mean? Z-SPREAD meaning, definition & explanation
 
02:35
What is Z-SPREAD? What does Z-SPREAD mean? Z-SPREAD meaning - Z-SPREAD definition - Z-SPREAD explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. The Z-spread, ZSPRD, zero-volatility spread or yield curve spread of a mortgage-backed security (MBS) is the parallel shift or spread over the zero-coupon Treasury yield curve required for discounting a pre-determined cash flow schedule to arrive at its present market price. The Z-spread is also widely used in the credit default swap (CDS) market as a measure of credit spread that is relatively insensitive to the particulars of specific corporate or government bonds. Since the Z-spread uses the entire yield curve to value the individual cash flows of a bond, it provides a more-realistic valuation than an interpolated yield spread based on a single point of the curve, such as the bond's final maturity date or weighted-average life. However, the Z-spread does not incorporate variability in cash flows, so a fuller valuation of a rate-dependent security often requires the more-realistic (and more-complicated) option-adjusted spread. For mortgage-backed securities, a projected prepayment rate tends to be stated; for example, the PSA assumption for a particular MBS might equate a particular group of mortgages to an 8-year amortizing bond with 6% mortality per annum. This gives a single series of nominal cash flows, as if the MBS were a riskless bond. If these payments are discounted to net present value (NPV) with a riskless zero-coupon Treasury yield curve, the sum of their values will tend to overestimate the market price of the MBS. This difference arises because the MBS market price incorporates additional factors such as liquidity and credit risk and embedded option cost. The Z-spread of a bond is the number of basis points (bp) that one needs to add to the Treasury yield curve (or technically to Treasury forward rates), so that the NPV of the bond cash flows (using the adjusted yield curve) equals the market price of the bond (including accrued interest). The spread is calculated iteratively.
Views: 2297 The Audiopedia
How to Trade Bonds & Notes as a Pair | Closing the Gap: Futures Edition
 
13:35
Traders use the NOB (Notes Over Bonds) spread to take advantage of the inverse relationship between yields and Interest Rate Futures/US Treasuries. To do this properly, Pete Mulmat explained that the delta of the Bond has to be calculated. This is also known as the Dollar Value of one Basis Point, or DVO1. This value allows traders to get the proper contract size for both Notes (/ZN) and Bonds (/ZB). Check out this segment to discover the potential pairs trade setups using futures contracts and options on futures for the best use of capital given your assumption on this relationship! See more videos from the Closing the Gap: Futures Edition Series: http://ow.ly/YNvtt The gap between the self-directed and institutional trader in the world of Futures gets closer as Tom and Tony go head-to-head with one of the Futures market industry's best institutional traders. We bring professional strategies to individual investors. You can watch a new Closing the Gap: Futures Edition episode live and check out all previous episodes everyday at http://ow.ly/EoyGW! ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/
Views: 2257 tastytrade
Carry Offer - Singapore Govt Securities (SGS)
 
06:41
Members :: Treasury Consulting LLP Pleased Video Titled - " Carry Offer - Singapore Govt Securities (SGS) ". Video would be covering as how Singapore Govt offer Carry Arbitrage vs. United States Treasury (UST). Video would also be covering 10 Y , 30 Y Singapore Govt Securities with UST and arbitrate opportunities by SGS. You are most welcome to connect with us at 91-9899242978 (Handheld) , [email protected] , [email protected] , Skype ID ~ Rahul5327 , Twitter @ Rahumagan8 or our website - www.treasuryconsulting.in
Why Do Corporate Bonds Yield More than Treasury Bonds?
 
08:49
Professor Francis Longstaff and student Eric Neis say theres more to it than risk. Visit UCLA Anderson School of Management http://www.anderson.ucla.edu/ Click here for more faculty videos from UCLA Anderson School of Management http://www.anderson.ucla.edu/x17273.xml
Views: 4598 UCLA
Fiscal Policy: Introduction to Bond Markets and Interest Rate Determination
 
13:50
One of the least understood topics among introductory Econ students is how bond markets work. This video lesson introduces the bond market, and explains how the demand for a government's debt is an important determination of the borrowing costs faced by that government. We will answer some important questions about bond markets, such as, "What's the relationship between bond prices and bond yields?" and "How could budget deficits and debt affect interest rates?" In the next video we'll examine circumstances under which large budget deficits and national debt may NOT drive up a government's borrowing costs. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 12962 Jason Welker
What is the US Treasury Bond Futures Market
 
02:38
Try this market with a real time practice account: http://tinyurl.com/opfb3rd Trading Futures involves substantial risk of loss and is not suitable for all investors. The e-mini S&P stock index futures market is an electronic market traded on the CME Groups electronic exchange.
Views: 4126 Infinity Futures
Selling Options vs Buying Vertical Spread: Treasury Bonds example
 
04:31
http://sltradinggroup.wordpress.com/ $tlt $ief $bnd update: rates increasing as stocks are bid higher $$Selling Options vs Buying Vertical Spread: Treasury Bonds example
Views: 422 sellingoptions
2019 Bond Market Outlook
 
01:50
We ended 2018 with a cautious outlook on the bond market. Our biggest concern was that the Federal Reserve’s series of interest rate hikes would reduce demand for bonds, especially bonds in the riskier segments of the market like high-yield bonds; but recently the Federal Reserve has indicated that they’re unlikely to raise interest rates again in the near-term. Does that mean we should throw caution to the wind? Kathy Jones takes a look on this episode of Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (0219-95X1)
Views: 7289 Charles Schwab
Tim Bennett Explains: Why sky high bond prices have kept on rising
 
06:08
This week Tim Bennett looks at why government bond prices have carried on rising in 2016 despite the record-low yields on offer.
Views: 796 Killik & Co
Answers about Spread Ratios for Treasury Bonds & Notes
 
02:46
http://twitter.com/hamzeianalytics - Long time institutional futures broker George Cavaligos answers questions about spreads for treasury bonds and notes. Specifically, Cavaligos discusses what the ratio should be between different bonds and notes used in a spread. See George's Daily Commentary on http://nakedtrader.com For more educational webinars: http://hamzeianalytics.com/educational_webinars.asp
Views: 458 Hamzei Analytics
On The Run & Off The Run Government Bonds
 
03:04
Two Minutes Concept Series gives you a clear understanding of all important concepts of Financial Markets, Macroeconomics, Investments, Public Finance and Central Bank Policies
Views: 1556 Zephyr FP
Treasury Bonds & Notes for Stock Traders
 
08:20
http://twitter.com/hamzeianalytics - Excerpt from Treasury Bonds & Notes webinar with George Cavaligos, a long time institutional futures broker. Cavaligos explains the basics of the treasury market, treasury spreads, and the details of various treasury futures contracts as they relate to stock and equity futures traders. See George's Daily Commentary on http://nakedtrader.com For more educational webinars: http://hamzeianalytics.com/educational_webinars.asp
Views: 361 Hamzei Analytics
9. Yield Curve Arbitrage
 
01:15:08
Financial Theory (ECON 251) Where can you find the market rates of interest (or equivalently the zero coupon bond prices) for every maturity? This lecture shows how to infer them from the prices of Treasury bonds of every maturity, first using the method of replication, and again using the principle of duality. Treasury bond prices, or at least Treasury bond yields, are published every day in major newspapers. From the zero coupon bond prices one can immediately infer the forward interest rates. Under certain conditions these forward rates can tell us a lot about how traders think the prices of Treasury bonds will evolve in the future. 00:00 - Chapter 1. Defining Yield 09:07 - Chapter 2. Assessing Market Interest Rate from Treasury Bonds 35:46 - Chapter 3. Zero Coupon Bonds and the Principle of Duality 50:31 - Chapter 4. Forward Interest Rate 01:10:05 - Chapter 5. Calculating Prices in the Future and Conclusion Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Fall 2009.
Views: 52491 YaleCourses
What Is The German Bund?
 
00:45
The 13681 is used when you place a short or sell spread bet, and also to close 5 jun 2017 in the united states, german american bund, an nazi organization, was formed 1936, soon grew have tens of contract standard delivery may be made any bonds on list deliverable euro denominated government respect month bund translation english, english dictionary, meaning, see 'bund',bndel',bnden',bndig', example use, definition, conjugation, reverso germany 10 year bond stock tmbmkde 10y. 26 apr 2017 germany's benchmark 10 yeargovernment bond yield rose to fresh one month highs onwednesday, pushing higher a day after reuters click to see more information on german bonds etfs including historical performance, dividends, holdings, expense ratios, technicals and more 14 jun 2016 over $10 trillion worth of sovereign bonds across the world sport negative yields and on tuesday the 10 year german government bond just the current bid and offer prices for the german bund are 13681 13684. 10 year german bond yield finally turns negative. Googleusercontent search. The underlying benchmark bonds are located under {ycgt0016 des } 2 for 'members' stay on top of current and historical data relating to germany 10 year bond yield. Asp url? Q webcache. United states, between 1936 and 1939. Bund investopediagerman rates & bonds bloomberg. Sthe german government uses bunds to finance its spending, and bonds with long term durations are the most widely issued securities get updated data about. National archives and 10 30 year bunds represent the long end of german government yield curve. Bund investopedia terms b bund. What's next how to spread bet the german bund financial betting. Find information on government bonds yields and interest rates in germany the are comprised of generic german. A bund is a debt security issued by germany's federal government, and it the german equivalent of u. Der bund, a german language newspaper published in bern, switzerland the american or federation was an nazi organization established 1936 to succeed friends of new germany bonds market data, news, and latest trading info on bund treasuries government bond markets from around world 6 aug 2016 known as 'bunds' may have been relatively niche global level before crisis, but investors now monitor so called fritz kuhn, head antisemitic pro speaks at rally. American nazis in the 1930s german american bund short future (schatz) dictionary tmbmkde 10y. The yield on a treasury bill represents the return an investor will receive by 6 jul 2017 drop in key eurozone government bonds prompted major rethink over path of monetary policy has pushed 10 year bundesanleihe, german issued bonds, commonly referred to as 'the bund' or 'bunds' bunding, structure designed prevent inundation breaches construction. Germany generic govt 10y yield analysis gdbr10 bloomberg germany 10 year bond investing. German 10 year bund yield hits 0. Bx bonds price & news germany 10 year. At year end 2016, they account for about 60. Ge
Views: 91 Burning Question
US Corporate Bond Market Today for Individual Investors
 
13:20
In this July 16, 2018 presentation to the Securities and Exchange Commission's Fixed Income Market Structure Advisory Committee (FIMSAC), BondSavvy founder Steve Shaw shows why investors in individual corporate bonds enjoy a higher level of transparency than investors in bond funds and ETFs. He shows how narrow bid-ask spreads have become for individual corporate bonds and the information available to investors to make successful individual corporate bond investments. Steve then discusses a number of recommendations to further improve pre-trade transparency for US corporate bonds, including: 1) modifying how FINRA presents historical prices in corporate bond historical price charts, 2) adding credit spreads to FINRA TRACE price graphs, 3) educating investors on why bonds should often be sold prior to maturity, 4) reflecting market prices rather than evaluated prices on client brokerage statements, and 5) educating investors on the pros and cons of investing in individual corporate bonds vs. bond funds and ETFs. During the course of Steve's presentation, he refers to a comment letter BondSavvy submitted to the US Securities and Exchange Commission that can be found here: https://www.sec.gov/spotlight/fixed-income-advisory-committee/bondsavvy-comment-letter-pre-trade-transparency-for-retail-investors-in-the-us-corporate-bond-market.pdf
Views: 193 BondSavvy
United Kingdom Government Bonds: Forward Rates & Zero Yields, 1979 to 2016
 
06:32
Kamakura Risk Manager was used to create maximum smoothness forward rates and zero coupon yields from Bank of England on a daily basis from 1979 to 2016. More at [email protected]
Views: 115 KamakuraCorporation
S&B: Yield Curve Environment and Spreads
 
09:14
This week Jay reviews recent upward movements in the Treasury yield curve. He also elaborates on historical spreads between tax-exempt municipal bonds and the 10-year Treasury. With this in mind, Jay feels municipal bonds are still looking cheap compared to historical spreads.
Views: 221 SeifriedBrew
Benchmark bond yields' record run | FT Markets
 
01:23
Sharp declines in bond yields spur big capital gains for investors who bought bonds before the Brexit vote. Michael Mackenzie, FT markets editor, explains. ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 765 Financial Times
Corporate Bond Market: Catalyst For The Next Financial Crisis
 
27:12
The corporate bond market looks like it could be the catalyst for the next financial crisis in the US. Corporate debt is over $5 trillion and $1.6 trillion of this needs to refiananced in the next three years. With rates on the increase and 48% of corporate bonds rated BBB, one level above junk status, we could be in for a proble,. However problems are also chances for success in specualting. Investopdeia on Bonds https://www.investopedia.com/terms/b/bond.asp
Views: 903 John Polomny
Corporate Bonds
 
01:07:07
Training on Corporate Bonds by Vamsidhar Ambatipudi
Time to Buy Bonds
 
04:16
http://profitableinvestingtips.com/bond-investing/time-to-buy-bonds Time to Buy Bonds By www.ProfitableInvestingTips.com Over the years well-chosen stocks typically provide a better return on investment than bonds. But, this is not always the case. In fact, now may be a time to buy bonds and sell your stocks. The Market published an interesting article about Warren Buffet’s favorite indicator and suggests that it may be time to sell stocks and time to buy bonds. So what’s a fretting investor with rate hikes on the horizon to do? There’s the obvious choice: Ease up on the equity throttle and seek the security of the fixed-income market. That’s what Warren Buffett’s favorite valuation indicator seems to be saying. We’re seeing some of that thirst for safety prop up Treasuriess lately. Even as China has cut back its holdings in U.S. debt by about $180 billion, according to Bloomberg, the market has barely budged. That’s because, from banks to mutual funds, there are plenty of buyers out there. Buffet’s indicator is a comparison of total market cap to the gross national product. Going back decades this has been a good indicator for when it is time to buy bonds or stocks. Now, it would appear that the indicator is telling us it is time buy bonds. So Why Did Treasuries Fall? The Wall Street Journal reports a pullback of U.S. government bonds as stocks rally. U.S. Treasury bonds pulled back on Monday after a recent rally, as hopes of fresh monetary stimulus to support China’s slowing economy boosted investors’ appetites for riskier assets. China’s stocks rallied after soft exports bolstered market expectations that Beijing would increase spending and continue to prop up the equity market by buying shares. Looming new U.S. government debt sales also weighed down bond prices. A $24 billion sale of three-year Treasury notes is due Tuesday, followed by a $24 billion sale in 10-year notes Wednesday and $16 billion sale in 30-year bonds Thursday. In recent trading, the yield on the benchmark 10-year Treasury note was 2.214%, compared with 2.173% on Friday, according to Tradeweb. Yields rise as prices fall. Does this refute the wisdom that it is time to sell stocks and buy bonds? The fact is that the market cap to GNP indicator is a general indicator and an accurate one. It does not apply to which individual stocks you own but to the market in general. And even though bonds may have their issues they are a safe haven when the stock market goes bust. Lost Touch with Reality Bloomberg Business says that the S&P 500 flouts history as it ‘breaks with bonds.” As far as credit markets are concerned, U.S. stock investors have lost touch with reality. That’s seen in the extra yield bond investors demand over Treasuries. The spread has expanded by 0.48 percentage point from a year ago, the most since 2012, even as the Standard & Poor’s 500 Index rallied. While not without precedent, instances when anxiety in bonds didn’t seep into equities are rare. More than 70 percent of the time since 1996, as spreads widened as much as they have since April, the S&P 500 has fallen, with the average decline exceeding 10 percent, data compiled by Bloomberg show. The average fall in stocks has been ten percent over the last fifty years whenever market cap goes too high in comparison to the GDP. One more voice has been added to the chorus that is singing, it is time to buy bonds. https://youtu.be/d3bpzwSyGLo
Views: 186 InvestingTip
German bond yields fall further
 
00:26
http://www.euronews.com/ Germany's cost of borrowing has fallen to a new record low. On Wednesday the government easily sold 4.15 billion euros worth of 10-year government bonds at an average interest rate of one point three one percent. The auction shows how desperate investors are to buy "safe haven" German bonds and how little confidence they have in recent measures agreed by European policymakers to combat the eurozone debt crisis. The worry is that Madrid may need a full state bailout, which would stretch the limits of the European Stability Mechanism and leave the bloc defenceless in case the crisis engulfs Italy, one of the largest bond markets in the world. On Tuesday Italian Prime Minister Mario Monti said Italy could be interested in tapping the fund to ease its borrowing costs. Germany will repay bonds and interest worth 40 billion euros this week and the prospect of a further 50 billion euros of payments due next week from triple-A rated countries including France and the Netherlands also boosted demand. For shorter-dated debt, investors are even willing to pay Germany to park their cash with it. Two-year yields traded in and out of negative territory this week. Find us on: Youtube http://bit.ly/zr3upY Facebook http://www.facebook.com/euronews.fans Twitter http://twitter.com/euronews
Bond Outlook - Spreads Could Widen if CA Stalemate Persists - Bloomberg
 
05:16
Investing in California Bonds - Analysis and Discussion with Paul Brennan of Nuveen Asset Management (Bloomberg News)
Views: 314 Bloomberg
10. Debt Markets: Term Structure
 
01:10:45
Financial Markets (ECON 252) The markets for debt, both public and private far exceed the entire stock market in value and importance. The U.S. Treasury issues debt of various maturities through auctions, which are open only to authorized buyers. Corporations issue debt with investment banks as intermediaries. The interest rates are not set by the Treasury, the corporations or the investment bankers, but are determined by the market, reflecting economic forces about which there are a number of theories. The real and nominal rates and the coupons of a bond determine its price in the market. The term structure, which is the plot of yield-to-maturity against time-to-maturity indicates the value of time for points in the future. Forward rates are the future spot rates that can be calculated using today's bond prices. Finally, indexed bonds, which are indexed to inflation, offer the safest asset of all and their price reveals a fundamental economic indicator, the real interest rate. 00:00 - Chapter 1. Introduction 04:25 - Chapter 2. The Discount and Investment Rates 19:12 - Chapter 3. The Bid-Ask Spread and Murdoch's Wall Street Journal 29:17 - Chapter 4. Defining Bonds and the Pricing Formula 39:38 - Chapter 5. Derivation of the Term Structure of Interest Rates 52:34 - Chapter 6. Lord John Hicks's Forward Rates: Derivation and Calculations 01:06:09 - Chapter 7. Inflation and Interest Rates Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Spring 2008.
Views: 50936 YaleCourses