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Risks of Bonds
 
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This video examines various risks which are associated with investing in bonds. The areas of risk covered include: - Default Risk: the risk that the issuer will not be able to pay back the loan - Inflationary Risk: the risk that spending power will be eroded (-ve rate of return). - Callability Risk: the risk that the bond will be bought back for less than you paid for it. - Liquidity risk: the risk that you won't be able to sell when you want to. - Political Risk: actions taken by governments which affect the bond market - Interest rate risk: the risk that interest rates will rise thus lowering bond prices.
Session 2: Understanding Risk - The Risk in Bonds
 
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In this session, we examine the risks of investing in bonds. Even if the payments on the bond are guaranteed (there is no default risk), you face interest rate risk after you buy the bond and we look at simple measures of interest rate risk exposure. We also look at the additional risk that comes from default, how best to measure that default risk and how much to demand as compensation for exposure to that risk.
Views: 14179 Aswath Damodaran
Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
 
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Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?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-the-yield-curve?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: 565507 Khan Academy
Billionaire Howard Marks: Investing, Bonds and Risk
 
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An interview with billionaire investor and Co-founder of Oaktree Capital's, Howard Marks. In this interview Howard discusses topics from his book, The Most Important Thing. Topics range from his investment strategy to how Howard views risk and bonds.📚 Books by Howard Marks and his favourite books are located at the bottom of the description❗ Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Video Segments: 0:00 Introduction 0:55 Failing to learn the lessons of history 6:15 Black Monday 1987 9:09 The Tech bubble/ High yield bond 15:37 Financial crisis 2007/8 20:36 Risk 25:25 Knowing what you don’t know 33:50 Having a sense for where we stand 36:55 Luck 46:35 Building Oaktree capital 49:34 What qualities do you look for in people 52:35 Succession Howard Marks Books 🇺🇸📈 (affiliate link) The Most Important Thing:http://bit.ly/MostImportantThingHM Howard Marks Favourite Books🔥 Winning the Loser's Game:http://bit.ly/WinningTheLosersGame A Short History of Financial Euphoria:http://bit.ly/FinancialEuphoria Fooled by Randomness:http://bit.ly/FooledByRandomnessHM Interview Date:1st May, 2013 Event :Milken Institute Original Image Source:http://bit.ly/HMarksPic Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place. For more check out the channel. Remember to subscribe, share, comment and like! No advertising.
Views: 20884 Investors Archive
Are Government Bonds Risk Free?
 
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The hosts of "Money Talks" address a listener's question on government bonds. Troy Harmon, CFA, Mark Bendinelli, CFA and Nick Antonucci discuss why government bonds are generally deemed risk free. They also address the factors you should consider to minimize your risk and our recommended duration for holding fixed-income securities in the current interest rate environment. Fan and Follow Henssler Group -- Download the Henssler App Facebook: http://on.fb.me/14IxKoA Twitter: http://bit.ly/13rGJbI LinkedIn: http://linkd.in/17n8uTI YouTube: http://bit.ly/ehBglQ iPhone App: http://bit.ly/13yiG9y Google Play: http://bit.ly/1cyGALf
Views: 286 HensslerFinancial
Bonds Default Risk and Credit Ratings
 
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Bond default risk; bond credit ratings; determinants of credit ratings; yield spreads of corporate and municipal bonds over Treasuries
Views: 2017 Elinda Kiss
Tim Bennett Explains: Bonds (Part Two): rewards and risks
 
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Bonds offer investors the chance to make a greater return than they usually can from cash without taking the extra risk associated with buying shares. In this short video I summarise how this risk/reward trade off works.
Views: 2252 Killik & Co
Credit risk in bonds
 
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Credit risk in bonds I've tried to emphasize interest rate risk when you invest in bonds because many people don't understand this risk even though it's probably the biggest risk facing today's bond investor. But almost everyone understands credit risk. Credit risk is the risk that the issuing company or government can't meet the promised interest or principal payments. US Treasuries face least credit risk In this case, US Treasury bonds and mortgage securities called Ginnie Maes offer the highest credit ratings. These securities are backed by the "full faith and credit" of the US government. Government agency securities After US Treasuries and Ginnie Maes come debt issued by quasi-governmental agencies like the Federal Home Loan Mortgage Corporation also known as Freddie Mac. Although debt issued by these corporations does not carry the explicit backing of the US government, most bond traders believe the government will back up the companies if their bankruptcy is threatened. Blue chip corporations Next comes the debt of large, blue chip corporations like General Electric. This debt is normally called investment grade debt. Debt issued by large corporations is normally rated by independent companies like Moody's, and Standard & Poors. These companies do extensive research into the issuing company's ability to repay their bonds. Hierarchy of claims Before we jump further down into junk bonds, we should spend a little time talking about the hierarchy of claims on a company's assets and see what happens if a company files or is forced into bankruptcy. According to the US Constitution, bankruptcy proceedings are handled by federal law. US bankruptcy laws were rewritten in 1978 to change the traditional pecking order of those who can make claims against a bankrupt company. Lawyers and the IRS are highest Highest on the pecking order is the bankruptcy lawyers. Lawyers write the laws, so it shouldn't be too surprising that they want to get paid for their efforts as they try to dole out the company's assets. Next comes the IRS, then the firm's employees and their pension funds. After them come the company's secured creditors. These creditors have loaned the company money, but the loan is secured by a mortgage on a piece of real property like a building or heavy equipment. Most blue chip debt is unsecured Although secured debt is common for smaller companies, the majority of blue chip corporate debt is unsecured debentures. Here the lender only has the promise that the firm will honor its debt. This is similar to unsecured credit card debt that most consumers carry. However, there are several levels of unsecured debt. So-called senior debt holders are paid off before junior or subordinated debt holders. Unsecured creditors also include the suppliers who provided the company with merchandise. After the junior debt holders come the preferred stockholders. Finally, if there's any money left, the common stockholders receive compensation for their ownership in the company. Chapter 11 and 7 bankruptcy There are two forms of corporate bankruptcy, named for sections in the federal law which govern their policies. One is Chapter 11, and this type appears in the news most often. In this case, the company continues operation, but it receives a temporary reprieve from its creditors while it works out a debt repayment plan. The second is Chapter 7. In this more extreme case, the company is liquidated and assets are sold off to satisfy creditors. A company can be forced into bankruptcy by its creditors if the company fails to meet its obligations. The company also voluntarily can choose to file for bankruptcy. Once in bankruptcy, a federal court plays a major role in the handling of claims. Typical bankruptcy reorganization Although it's difficult to generalize about bankruptcy proceedings, if a company files for bankruptcy, and then later re-emerges as an operating company, the old creditors and shareholders have their claims shifted down one level in the claims hierarchy. For example, the old senior debt holders become junior creditors, the old junior debt holders become stockholders and the old stockholders lose everything or perhaps get some equity warrants. Ratio analysis for credit worthiness To avoid the unpleasantness of bankruptcy, bond investors and independent rating agencies analyze a company's financial condition. Typically, investors look at various ratios to see if the firm is a good risk. One of the most common ratios is the firm's current ratio. Current ratio Times interest earned ratio Debt to equity ratio Copyright 1997 by David Luhman
Views: 1052 MoneyHop.com
Short Term High Yield Bonds
 
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The current low interest rate environment means that bond investors have to take more risk in order to gain an attractive return on their invested money. The current low interest rates also present a risk that if interest rates and inflation rise in the future, then bond prices may fall and portfolios could suffer losses.
Views: 8302 hubbis
Why Traditional Bonds Are High Risk, but Munis Have Advantages. Two Top Bond Managers Explain
 
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Two influential bond managers explain why municipal bonds still make sense and so many corporate and Treasury bonds don’t. WEALTHTRACK # 1433 broadcast on February 2, 2018.
Views: 7359 WealthTrack
Excel Finance Class 54: Bonds & Interest Rate Risk
 
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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn Interest Rate Risk: 1. The Longer The Maturity, The More YTM Affects Bond Price 2. The Lower The Coupon Rate, The More YTM Affects Bond Price
Views: 12797 ExcelIsFun
High Yield Bonds and Rising Rates: Opportunity or Risk?
 
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Shawna Millman, Vice President and Director, TD Asset Management, shares her analysis on the high yield bond market and the impact of rising rates.
Views: 1262 TD
CFA Level - I Risk Associated with Bonds- Part I
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video was recorded during a one of the CFA Classes in Pune by Mr. Utkarsh Jain.
Views: 1837 FinTree
Risks Associated with Investing in Bonds - CFA Course
 
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This video talks about: 1.Risks Associated with Bonds 2.Yield Curve Risk 3.Pre-Payment Risk 4.Reinvestment Risk 5.Liquidity Risk 6.Exchange Rate Risk 7.Purchasing Power Risk and Event Risk Click the following link for more details http://goo.gl/ai9ARL
Views: 176 Simplilearn
7 Painful Ways to Lose Money Investing in Bonds
 
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Did you know that there are 7 different ways to lose money investing in bonds? That’s right, investing in bonds isn’t always a safe and low-risk investment. However, once you know and understand the risk associated with bond trading, then the chances of you losing money go down drastically. To download your FREE Report called, “The 7 Ways To Lose Money With Bonds”, check out: http://www.retirementthinktank.com/bondreport Now bonds have traditionally been viewed as a very safe way to create a steady stream of cash flow, and many brokers and financial advisors recommend bonds as part of a solid balance to any financial portfolio. And all of that is true…most of the time. The big issue with bond risk (and how people lose money with bonds) is when any of these 7 risk factors arise. And even worse, when any of the 7 risks combine at the same time, it can prove catastrophic. I will give you a basic review of the 7 different ways to lose money in bonds here: 1. Lack of Liquidity in bonds – Although the bond market is larger than the stock market in total value, there are far fewer bond traders and bond investors comparatively speaking. So when issues arise with a certain bond (like a city or municipality defaulting on their bonds, bankruptcy, etc), it can leave the average investor high and dry with no one to sell their bond to. 2. Interest Rate Fluctuations – Bond prices are inversely related to interest rates, so when interest rates rise, bond prices (the price that you buy and sell bonds) goes down. And with interest rates close to all-time lows today, this is a bubble just waiting to pop once interest rates start rising. And if they rise quickly, watch out bond prices! 3. Bond Creditworthiness – This is an important issue as the creditworthiness of the bond issuer determines the yield, and thus your risk/return. For instance, you might not get a great return on a United States Treasury bond, but you can sleep at night knowing there is little chance it will default. On the other hand, you can get hundreds of times more yield on a low-grade junk bond, but the chances of you losing money (or even all of your investment) go up significantly compared to a US Treasury bill. 4. Inflation / Hyperinflation – Generally speaking, inflation usually means higher interest rates. And since we know that interest rates are inversely related to bond prices, high inflation can destroy the value of your bond. Not to mention, in times of inflation the cost of everything (consumer goods) is going up, while your bond investment doesn’t. So higher inflation could render your bond interest negative after you factor inflation into the equation. 5. Reinvestment Risk – This risk pertains to the opposite issue of the others in that it occurs in times of a slowing economy, or a declining interest rate environment. When interest rates go down, bond investors are forced to reinvest their bond interest (and any return of principal) into new securities that will have lower rates of return. Of course this will reduce the overall income that is being generated by your bond portfolio. 6. Bond Fund “Backfire” – Bond funds have traditionally been considered very safe as they spread the bond risks out amongst many different bonds (versus an individual bond). And this is usually the case. However, bond funds can “backfire” when a bond manager starts replacing bonds as they mature in a rising interest rate environment. And if the bond portfolio loses enough value that investors start leaving the fund in droves, then the bond manager might have to start unloading high yielding bonds to meet the early redemption's. This doesn’t happen that often, but when it does, it is painful to all involved. 7. Making Bad Bond Assumptions – Finally, don’t ever make the assumption that your bond or bond fund is free of risk and can just cruise on auto-pilot without you ever having to review or check up on. This is where many bond investors get into trouble by thinking they can buy it and forget about it. Stay educated on what is going on with your bond, watch interest rates, and don’t chase bond yields! Finally, always get the advice of a licensed bond specialist to make sure that you never get burned by any of these bond risks. To download your FREE “7 Ways To Lose Money With Bonds” Report, go to http://www.retirementthinktank.com/bondreport Disclaimer: Nothing in this video or free report can be or should be construed as investment advice. This is purely educational and there is not enough information in here or the report to make educated investment decisions. Always consult with a financial advisor before making any investment decisions.
Views: 130468 Retirement Think Tank
Understanding Risk I: The Risk in Bonds
 
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http://www.symynd.com/symynd/1617/ This Course-in-a-Book is for everyone who is an investor or wants to invest. You may be an employee managing your 401K, a hedge fund manager, an investment consultant, or even an investment banker. Choosing the right investment philosophy is at the heart of successful investing. To make the choice, though, you need to look within you before you look outside. In this course based on the second edition of Investment Philosophies (Wiley), New York University's Stern Business School Professor Aswath Damodaran will help you do this by going beyond the simple explanations of traditional and alternative investment strategies to discuss the individual underlying philosophies that support those techniques.
Views: 436 symynd
Treasury Bonds Risk Off Risk On
 
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Join www.chartingclub.com for more videos! Known for their flight to quality and market uncertainty properties, Treasury Bonds can be used to anticiapate and hedge against a risk event. This weekend we saw Treasuries buying on the close in Friday and after G20 summit relief gaped back down on the open Sunday night. To learn more check out the Market Spotlight Webinar with David Lerman CME Group. https://www.youtube.com/watch?v=h8FXpVESnPg
Views: 129 Infinity Futures
Bonds & Interest Rate Risk
 
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Bonds & Interest Rate Risk including bond features, immunization, and duration. Also see/hear Borrowing
Views: 14712 drcinvests
Bonds and Interest Rate Risk
 
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Interest Rate Risk
Views: 708 Kevin B
BVTV: Bonds and interest rate risk
 
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This week on BVTV, Fund Manager Matt Russell joins in to discuss bonds and interest rate risk: 1) Why an interest rate shock could cause carnage in bond markets 2) The duration impact on a credit portfolio 3) Best strategies to hedge against interest rate risk going forward Bond Vigilantes TV - The weekly review of global bond markets by the M&G Fixed Income team. https://www.bondvigilantes.com https://twitter.com/bondvigilantes
Views: 1532 Bond Vigilantes
Add Risk to Bonds on Yield Curve Inversion, Sit's Doty Says
 
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Mar.25 -- Bryce Doty, senior vice president at Sit Fixed Income, and Sylvia Jablonski, head of capital markets and institutional strategy at Direxion Investments, discuss investment strategies for bond and equity markets following the yield curve inversion. They speak on "Bloomberg Daybreak: Americas."
Understanding and managing the risk of bonds
 
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This whiteboard video outlines why might it be risky for income investors to allocate too much of their portfolio to traditional income investments like government and investment grade bonds.
Tank Says Neuberger Poised to Take More Risk in Bonds
 
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Aug. 5 (Bloomberg) -- Brad Tank, head of fixed income at Neuberger Berman Group LLC, talks about investment strategy in the fixed-income market. Tank speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Views: 150 Bloomberg
Bond Valuation | Malkiel's Bond Theorem | Floating Rate Bonds | Risk In Bond Investment | Part 7
 
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Strategic Financial Management : Chartered Accountancy; Bond Valuation | Malkiel's Bond Theorem | Floating Rate Bonds | Risk In Bond Investment | Part 7; Briefing: 00:00:19 - 00:00:38 Topic Covered : 1. Malkiel’s Theorems : 00:00:39 - 00:05:38 -This summarizes the relationship between bond prices, yields, coupons & maturity. a. Theorem 1 b. Theorem 2 c. Theorem 3 d. Theorem 4 e. Theorem 5 2. Concept Crux: 00:05:39 - 00:08:04 -Price yield relationship is fundamental to bond price behavior & is based on a principle that bond price and yield move in opposite direction. -Long Maturities have greater price fluctuation. Also, lower the coupon, the higher is the price volatility. -The 2 bond variables of major importance in assessing price changes are:- i) Coupon ii) Maturity 3. Floating Rate Bonds : 00:08:10 - 00:10:17 4. Risks in Bond Investments : 00:10:22 - 00:19:50 -Interest Rate Risk -Reinvestment Risk -Credit Risk -Liquidity Risk -Inflation Risk/ Purchasing Power Risk -Market Risk -Call Risk 5. Risks affected by Government Policies [C.A Final, May'11] : 00:15:55 - 00:22:58 Video by Edupedia World (www.edupediaworld.com), Free Online Education; Download our App : https://goo.gl/1b6LBg Click here, https://www.youtube.com/playlist?list=PLJumA3phskPGZ7QPDmzNYr-fJDi5BjW6x for more videos on Strategic Financial Management; All Rights Reserved.
Views: 1478 Edupedia World
Financial Risk: Duration's impact on different bonds: FRM Q&A (bond duration)
 
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Two bonds with same face of $1,000 have the same modified duration of 3.0 years. Bond A is a zero-coupon bond with current price of $900; Bond B is a coupon-bearing bond priced at par. If the yield curve shocks up (in parallel) by 1 bps, the dollar change is greater for which bond? The spreadsheet I used is located here @ http://db.tt/sZUabw2g. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 3383 Bionic Turtle
Junk Bonds: Not Worth the Risk
 
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Many top bond investors, including Doubleline's Jeffrey Gundlach, believe high-yield bonds are overvalued after a long run. Subscribe to the WSJ channel here: http://bit.ly/14Q81Xy Visit the WSJ channel for more video: https://www.youtube.com/wsjdigitalnetwork More from the Wall Street Journal: Visit WSJ.com: http://online.wsj.com/home-page Follow WSJ on Facebook: http://www.facebook.com/wsjlive Follow WSJ on Google+: https://plus.google.com/+wsj/posts Follow WSJ on Twitter: https://twitter.com/WSJLive Follow WSJ on Instagram: http://instagram.com/wsj Follow WSJ on Pinterest: http://www.pinterest.com/wsj/ Follow WSJ on Tumblr: http://www.tumblr.com/tagged/wall-street-journal Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 1215 Wall Street Journal
Why You Should Think Twice about High Yield Bonds | Common Sense Investing
 
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In this episode of common sense investing I will tell you why you should think twice about owning high yield bonds. Alternative investments are a broad category, so I have split this topic up into multiple parts. In Part One, I will tell you why high yield bonds don’t quite yield enough to justify their risks. My name is Ben Felix of PWL Capital and this is Common Sense Investing. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover. ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ ------------------ Video channel management, content strategy & production by Truly Inc. - Website: http://trulyinc.com - Twitter: https://twitter.com/trulyinc
Views: 9001 Ben Felix
CFA Tutorial: Fixed Income (Reinvestment Risk for Callable Bonds & Option Free Bonds)
 
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Download Ethics Question Bank: http://www.edupristine.com/ca/free-10-day-course/cfa-fixed-income/ Understand how reinvestment risk is higher for callable bonds than option free bonds. Reinvestment Risk: The risk that future coupons from a bond will not be reinvested at the prevailing interest rate when the bond was initially purchased. Reinvestment risk is more likely when interest rates are declining. Callable Bonds: A callable bond (also called redeemable bond) is a type of bond (debt security) that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity. More about CFA on: http://www.edupristine.com/ca/courses/cfa/ About EduPristine: Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training provider for Finance Certifications like CFA, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world. Subscribe to our YouTube Channel: http://www.youtube.com/subscription_center?add_user=edupristine Visit our webpage: http://www.edupristine.com/ca
Views: 2008 EduPristine
No risk fixed income with (Government bonds) investment - By Trading Chanakya 🔥🔥🔥
 
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Hello, friends, today video concept is No risk fixed income with (Government bonds) investment.
Views: 6882 Trading Chanakya
Bonds and Interest Rate Risk
 
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Bonds and Interest Rate Risk
Views: 131 Kevin B
Disadvantages of Investing in Municipal Bonds
 
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This video discusses several disadvantages of investing in municipal bonds. Municipal bonds typically are less liquid than U.S. Treasury securities or corporate bonds, which means they may be harder to sell on the secondary market or come at a significant markup or dealer spread when being purchased. In additon, municipal bonds are frequently callable, which means investors could be subject to reinvestment risk if interest rates fall and the issuer decides to call the bonds (leaving the investor to reinvest the proceeds at the lower rate of interest). Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 6426 Edspira
What are the Bonds Saying about Market Risk?
 
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Are bonds doing a better job pricing in risk than the VIX? That's what we analyze in today's video newsletter update. This crucial answer may surprise you... The Reducing Risk and Maximizing Returns Blueprint (Atomic Hedge Strategy): https://theotrade.com/blueprint/ Sign up for the Trading VIX Options Course: https://theotrade.com/vol/ The Trap Trading System class: https://theotrade.com/trap/ The Next Big Short Class (Risk Twist Spread) https://theotrade.com/twist/ Weekly Options Trading Advantage Class https://theotrade.com/wo/ A trade you should add to your arsenal for any market condition get unlimited access to the on-demand recording of the Beginner's Guide to Ratio Butterflys Class: https://theotrade.com/ratio/ The High Probability Intraday Trading System with Doc Severson https://theotrade.com/qqq/ Live in person Trader's Retreat in Scottsdale, AZ: https://theotrade.com/live Learn the Tetrapod spread in the Secret Weapon to Trading Options on ETF's Class: https://theotrade.com/pod/ Consistent Intraday Strategies and Setups Class https://theotrade.com/day/ High Probability Trading with In Out Spreads Class: https://theotrade.com/spread/ Day Trading Nasdaq Futures Class with Tony Rago https://theotrade.com/nq Don't have thinkorswim? Open a TD Ameritrade Account and get the thinkorswim platform for free here: http://www.theotrade.com/tdameritrade Guide to Getting Short and Collecting Income: https://theotrade.com/getshort/ Join TheoTrade: https://theotrade.com/total Get Market Cliff Notes delivered to your inbox each trading day: https://theotrade.com/cliffnotes Get more free videos like these delivered to your inbox each trading day: https://theotrade.com Get free thinkorswim® tutorials: https://theotrade.com/tostutorials Subscribe to our YouTube channel: https://youtube.com/theotrade Follow TheoTrade on Twitter: https://twitter.com/realTheoTrade Become a fan of TheoTrade on Facebook: https://www.facebook.com/TheoTrade Follow TheoTrade on Pinterest: https://pinterest.com/theotrade
Views: 3027 TheoTrade, LLC
CFA Level 1: Fixed income - Risks Associated with Investing in Bonds LOS 53
 
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CFA Level 1: Fixed income - Risks Associated with Investing in Bonds LOS 53
Views: 686 iPlan Education
Bonds Biggest Risk to Stocks
 
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Stocks ended the day slightly lower as poor earnings from GS and JNJ pulls the markets down. However, the big mover of the day was the Bond market. For those that don't know the bond market is much larger than the stock market. Bonds are a flight to safety and with volume extremely light in stocks all of the action has been in bonds. In tonight's video find out why you should be concerned if you own stocks... Consistent Intraday Strategies and Setups Class https://theotrade.com/day/ High Probability Trading with In Out Spreads Class: https://theotrade.com/spread/ Day Trading Nasdaq Futures Class with Tony Rago https://theotrade.com/nq Don't have thinkorswim? Open a TD Ameritrade Account and get the thinkorswim platform for free here: http://www.theotrade.com/tdameritrade Guide to Getting Short and Collecting Income: https://theotrade.com/getshort/ Join TheoTrade: https://theotrade.com/total Get Market Cliff Notes delivered to your inbox each trading day: https://theotrade.com/cliffnotes Get more free videos like these delivered to your inbox each trading day: https://theotrade.com Get free thinkorswim® tutorials: https://theotrade.com/tostutorials Subscribe to our YouTube channel: https://youtube.com/theotrade Follow TheoTrade on Twitter: https://twitter.com/realTheoTrade Become a fan of TheoTrade on Facebook: https://www.facebook.com/TheoTrade Follow TheoTrade on Pinterest: https://pinterest.com/theotrade
Views: 1737 TheoTrade, LLC
Bonds   Interest Rate Risk; sample problems valuing bonds of different durations
 
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Price risk is the concern that rising yield (interest rate) will cause the value of a bond to fall. The longer duration bond (longer maturity and lower coupon rate) will have more price risk than the shorter duration bond. Reinvestment rate risk is the concern that yield will fall, and future CFs will have to be reinvested at lower rates.
Views: 808 Elinda Kiss
Tackle Climate Risk with Green Bonds
 
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William Sokol, Product Manager, discusses the launch of GRNB, the first U.S.-listed Green Bond ETF with Justine Leigh-Bell, Director of Market Development at the Climate Bonds Initiative. “Green bonds give you broad exposure to a group of issuers that are taking a deliberate, strategic approach to addressing and mitigating climate change risks” Learn more: https://www.vaneck.com/videos/tackle-climate-change-risk-green-bond/
Views: 559 VanEck
FRM Part I : Corporate Bonds Part I(of 3)
 
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FinTree website link: http://www.fintreeindia.com FB Page link :http://www.facebook.com/Fin... This series of video covers following key areas: • A bond indenture and explain the role of the corporate trustee in a bond indenture • A bond's maturity date and how it impacts bond retirements • The main types of interest payment classifications • Zero-Coupon bonds and the relationship between original issue discount and reinvestment risk • Among the following security types relevant for corporate bonds: mortgage bonds, collateral trust bonds, equipment trust certificates, subordinated and convertible debenture bonds, and guaranteed bonds • The mechanisms by which corporate bonds can be retired before maturity • Credit default risk and credit spread risk • Event risk and explain what may cause it in corporate bonds We love what we do, and we make awesome video lectures for CFA and FRM exams. Our Video Lectures are comprehensive, easy to understand and most importantly, fun to study with! This Video lecture was recorded by our popular trainer for CFA, Mr. Utkarsh Jain, during one of his live FRM Classes in Pune (India).
Views: 5621 FinTree
Reinvestment Rate Risk (bonds) - What is the definition? - Finance Dictionary
 
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Reinvestment Rate Risk - For Bonds reinvestment rate risk is the uncertainty surrounding the reinvestment rate of the bond's coupon payments. If rates were to rise then the market value of the bond would lose value however the reinvestment rate that the coupon payments could earn would go up, so there is a tradeoff. If rates were to drop then the market value of the bond would go up but the rate at which the coupons could be reinvested would go down. https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=sZF_aWmDwZI
Views: 2707 Subjectmoney
Advantages of Investing in Municipal Bonds
 
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This video discusses the advantages of investing in municipal bonds: namely, the historically lower risk of default (relative to corporate bonds) and tax-exempt nature of most municipal bonds. The video provides an example to show how the after-tax return of a municipal bond can be higher than a corporate bond that has a higher pretax yield. The video also demonstrates why municipal bonds are more attractive to high-income investors by showing that the tax-equivalent yield of a municipal bond increases as a person's tax rate increases. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 9810 Edspira
Why Bother With Bonds 2: Make Risk Palatable
 
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Learn why bonds are a critical element when building all-weather portfolios—even during low interest rates. This is one of four episodes where Rick Van Ness answers a basic question that nags beginning investors: Why Bother With Bonds? THIS MAKES THE WORLD A BETTER PLACE: Please like, comment and subscribe: http://youtube.com/user/FinancingLife101 Don't forget to SUBSCRIBE for more videos like this! http://www.youtube.com/subscription_center?add_user=FinancingLife101 VISIT FINANCINGLIFE.org FOR MORE VIDEOS & TIPS http://www.FinancingLife.org SUBSCRIBE TO OUR EMAIL LIST! http://financinglife.org/subscribing/ ABOUT US: We're a not-for-profit educational site to help YOU find and understand time-proven investing wisdom and to build an all-weather portfolio. Does making these videos interactive make them more fun and meaningful? Let me know what you think with a comment below. Thanks!
Views: 4931 FinancingLife101
The yield curve | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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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: 146572 Khan Academy
12 Oct 08 Government bonds and currency risk
 
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Anthony Yuen talked about government bonds and currency risk. The show was broadcasted on 12 Oct 08.
Views: 130 koontung
Game Theory - TLT (Bonds) {Risk vs. Reward}
 
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Game Theory on a calculated gamble based on price action of a particular code in the equities exchange called TLT
Views: 925 Money Charts
Why Traditional Retirement Advice Could Leave You Broke
 
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When the stock market is volatile, people often wonder what's going to happen to retirement money they've worked so hard to save and invest. Some want to pull their money out of stocks to keep it safe. Others take unnecessary risks, trying to get rich fast. Josh Brown, CEO of Ritholz Wealth Management, breaks down the most important things to keep in mind when investing as you near retirement. One of the biggest misunderstandings about investing is the role that volatility plays in your portfolio. Too much volatility, and you’re likely to panic and make disastrous decisions during the market’s roughest environments. Not enough volatility and you’re probably not taking enough risk to earn the returns you’ll need for later. It’s counterintuitive to think about volatility as your portfolio’s best friend, but once you switch your mindset over to doing so, you’ll become a much stronger and better equipped investor. Let’s start with the undeniable, incontrovertible fact: Risk and reward are inextricably linked. This is why stocks have returned almost double what bonds have returned over the last seven decades in the post-WWII era. This is in both nominal and real (adjusted for inflation) terms. Stock investors are taking more risk of drawdowns and volatility than investors in Treasury bonds, and the market’s way of compensating them for that risk is long-term returns that are substantially higher. But they’re not free. Investors must endure much greater uncertainty in the stock market as the price of this outperformance. The right portfolio strategy is typically a mixture of enduring uncertainty for high returns and enjoying less uncertainty but lower returns. A financial plan can help you figure out what blend makes the most sense given your long-term goals and short-term needs. Let’s also consider the fact that Wall Street makes most of its money convincing investors that they can either completely contain risk or even remove it from the equation. This is very difficult to do and most investors who attempt it end up disappointed with the results. Some version of risk must always be endured in the pursuit of returns. Risk cannot be eliminated, it can only be transformed into a different type of risk. Speaking of risk, one of the biggest problems with the way investors think about volatility is that they equate it with risk. But seeing price fluctuations in the short term only feels like risk. It only becomes a real risk if investors act on these feelings, making buy and sell decisions to alleviate mental anguish today at the expense of tomorrow. For most individual investors, the real risk is not saving enough and not having it grow enough to cover future expenses during retirement. If running out of money is the true risk, then anything you do today that reduces your probability of growing your nest egg is causing that risk. This means not having enough exposure to stocks while you’re young, working and able to replace lost income. The most important lesson I’ve ever been taught is that you’re going to have financial risk regardless, so when do you want it? You want it early, and not late, in your lifetime. Risk is the source of long-term investment returns. Being able to bear the volatility that so many others can’t sets you up to reap the rewards that risk-averse investors have taken themselves out of the running for, by swinging to cash or fleeing into Treasury bonds or hedging away all of their potential upside. Don’t take yourself out of the running. Stay in the game and remind yourself why you’re playing in the first place. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: http://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: http://cnb.cx/SubscribeCNBCclassic About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #JoshBrown #Retirement Why Traditional Retirement Advice Could Leave You Broke
Views: 67516 CNBC
Let's Play Bastard Bonds - Ep. 2 - Better Look At Risk!
 
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I started to get the idea of risk a bit better near the end of episode one. it has been explained a bit more to me since then, confirming things a bit more. So....with our new found knowledge, we press on! :D Bastard Bonds is a game that I hadn't heard of before. I checked it out and it looked quite good. I appreciate the developer and his stance on making the game EXACTLY how he wants it, without worrying about whether it's "PC" enough. Some folks give me grief for keeping it clean, while others appreciate it. I let the games speak for themselves while still being me. It should be an interesting road, but I think it will be fun and we'll strike a nice awkward balance as we press on! I hope you enjoy this LP and get behind the game if you like it! For all you social media junkies out there you can find me On : Twitch : http://twitch.tv/bumpymcsquigumsgaming The Phreak Show On Steam : http://steamcommunity.com/groups/ThePhreakShow Facebook : https://www.facebook.com/bumpymcsquigumsgaming Twitter : https://twitter.com/BumpyMcSquigums Patreon : https://www.patreon.com/bumpymcsquigums Intro/Outro Music Provided To Me By Breakdown Epiphanies! Check Out Breakdown Epiphanies On Soundcloud : https://soundcloud.com/breakdownepiphanies Breakdown Epiphanies Business Contact E-mail : [email protected] Where To Get Bastard Bonds : http://store.steampowered.com/app/486720/ Bastard Bonds Website : http://bigfingers.ca/ What Is Bastard Bonds? Bastard Bonds is a tactical strategy RPG with a mature rating stuck onto it. You start off creating your character from scratch. Then it's on to your trial where you are convicted of one of several different crimes and sentenced to the isle of Lukatt. You decide whether you are innocent or not and it will definitely play a part in how you deal with others on the island. Many choices await you, do you have what it takes to lead yourself and your allies off of the island?
Views: 1531 BumpyMcSquigums
Stocks and Bonds: Risks and Returns
 
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Learn about the Stocks and Bonds: Risks and Returns online course starting on October 13, 2014. Register here: https://class.stanford.edu/courses/GSB/StocksBonds/SelfPaced/about
Facebook, VIX shorts, bonds and other risks
 
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I warned investors about the risk in Facebook about a year ago, when it traded in the $170s. Now it's in the low $160s and the market is finding out the risk is higher than everybody thought. Warning: I do a little bragging in this video, and spend the rest of the time talking about risk, which is the most important thing investors need to monitor every day.
Views: 160 Extreme Value