Credit default swaps illustrated with toys

[@Pavitrak24]

Hands down. By far, the most simple and to the point explanation of CDS

[@georgeheld1901]

*only

[@HereLiesZ_y]

100% agree

[@hisdness1]

insurance on the mortgage. Simple as that.

[@OmnipotentO]

Just watched The Big Short and a lot of it went over my head so now I'm trying to watch all these explanation videos.

[@sangamregmi6913]

Big Short brought me here aswell 😂

[@aofckmssorular4693]

kzbin.info/www/bejne/mJSbomx-acemptU

[@matthewkemper9189]

Saaaaame

[@lucky81970]

Same

[@gorgonzola7988]

Same here

[@maltesetony9030]

Finally, someone has explained the whole s**t-show in a way that I can understand. Thank you, sir!

[@AndyMillard]

You're very welcome! Glad it was helpful!

[@PartTimeRonin]

You can show this video to a young child or a golden retriever and they will understand it, great job.

[@napoleonsolo5929]

I understood that reference!

[@flavio.panizza]

@@napoleonsolo5929 me too :)

[@BrjanBuckmaster]

Margin call was a great movie though I like the big short better.

[@satishpandey131]

Thanks Andy. You are better than Wikipedia.

[@路遥-w5w]

better than Investopedia on this

[@owamikahazarika]

I wish the entire world of derivatives could be put into my head just like you did with credit default swaps. Thanks for making it funny 😊

[@AndyMillard]

You are so welcome!

[@tarp11z]

Don't feel too lonely.

[@rajkumarbagchi16]

Are you Bengali by any chance?

[@sergiolo3196]

Simplest and easy-to-digest video related to what are the Credit Default Swaps. Thank you Mr. Millard.

[@AndyMillard]

You're most welcome!

[@patrickmarkfindlay550]

A significant component in teaching is transferring information in a clear and concise manner, this small lecture exemplifies the principle. firstclass.

[@AndyMillard]

Very kind of you Patrick. Thank you!

[@cato451]

Very good explanation and very accurate with one additional bit of information: The insurance companies who sold the credit default swaps also had insurance on those credit default swaps and that’s why it spread like wildfire.

[@AndyMillard]

As my philosopher brother-in-law Chuckie would say: What a country!

[@pcac0004]

So basically, this caused a chain reaction when the housing bubble popped?

[@anefriend]

Absolutely the best explanation ever about CDSs. You made it so simple! I am sure there are a lot of technical details about these instruments, but this is all we needed to know. Thank you.

[@AndyMillard]

You are most welcome! Glad it was helpful!

[@maewmaew5515]

Thanks for clarifying this in the most easy and cutest way. I love that blue barn and the way you modeling the dimes sharing between the banks and creditors. Its does help to make things clear. Even the 13 years old could understand this compex financial situation by watching your demonstration. God bless you! Love from UK.

[@AndyMillard]

So glad it was helpful! I'm constantly amazed at the impact of this video all these years later.

[@maewmaew5515]

I'm in the middle of learning about investing. I got hooked up with the story of 2008 and want to understand more. Thanks for the help.

[@timothyharshaw2347]

While I understood the mechanics of how Swaps such as CDS's work prior to this video; your method of getting it across is definitely the best that I've seen.

[@tarp11z]

It's so refreshing to get a simple explanation, as opposed to complicated rabbit holes intended to to make one feel stupid or out of the loop. Thank you, sir, for just making sense.

[@AndyMillard]

Thanks so much, Jess!

[@cheeseburger720]

This is just the explain like I’m 5 that I needed. Thanks

[@legendaryubagel2383]

You do not understand how simple you made this sound to me , i now fully understand it

[@nolendonovan3821]

hands down the best explanation of credit default swaps on the internet

[@azimjonjorayev6230]

I struggled a lot to understand CDS, thank you very much, one of the best explanations of the CDS on the entire internet!

[@AndyMillard]

Glad it was helpful!

[@write2jas80]

Your video saved so much of my time. Most videos are long on this subject and you simplified it to a great extent. Thanks!

[@AndyMillard]

You are most welcome, J S Bath. Stay tuned! ~Andy

[@baileyreport.]

Wonderful, wonderful explanation. I was a real estate for eight years, and I can tell this is exactly how it all works for the benefit of the banks. I've never met anyone who owned their home. When they needed to sell it, they were always upside down on their equity and usually took a loss or just walked away from it, leaving their furniture behind. The bank would foreclose on it and wait for someone else it up.

[@kingcee6036]

SIR, YOUR explanation WAS BY FAR THE BEST!!!!!

[@AndyMillard]

Glad you think so!

[@rationalpi6755]

I wish school professors could explain complex subjects as good as you

[@skusemepeash2910]

I laughed my head off Andy. You are amazing. Way better than investopedia

[@chillbro2275]

Splendid! Equally educational, funny, and conscious. Why aren't you every manager and professor?

[@AndyMillard]

Thank you, Chill Bro!

[@thegreatgambino]

That was a really creative explanation. Love the use of props.

[@MissPianoful]

Wowwww it's a really good explaination!

[@furiouslearner69]

the most perfect simple explanation ive ever seen

[@AndyMillard]

Thank you for that great comment!

[@DrProgNerd]

Most simple explanation I've seen on Credit Default Swaps. Loved it. Shared it.

[@suhuhsgee]

“Thanks again, see you next time”

[@karenperez4556]

Great! I have been watching multiple videos and reading articles and still couldn't understand it until now! Thank you!

[@AndyMillard]

So glad it was helpful, Karen.

[@chocolatemodelsofficial5859]

Basically they bought options that paid off majorly. First time I saw this video I could barely grasp it. Now after day trading for 4 years it all makes sense.

[@AndyMillard]

My hat is off to you! Day trading would certainly send me to an early grave...

[@danorem9969]

Wow, excellent video, really holds up

[@AndyMillard]

Thanks so much!

[@henrycobb9544]

Great video. It's like my Dad is explaining this stuff to me!

[@morrismonet3554]

"Still has not been fixed." As mortgage rates rise, history will repeat itself.

[@billwonders1603]

WOW! I'm a pretty smart guy, but this is the first time CDS's have been explained in an understandable way. Thank you!

[@AndyMillard]

So glad it helped, Bill. Thanks!

[@valeskaguzmanguerra9022]

Thanks for this simple explanation, I´ve been watching like 7 videos that last almost 15 minutes and understood nothing, I did like this one and the concept, thumbs up :)

[@AndyMillard]

Great to hear it was helpful!

[@ChrisCardenDrums]

Alan Greenspan said it best "If theyre 'too big to fail' theyre too big"

[@karthikm.m4363]

Explained very well. crisp and simple. Thank you all the way from India. continue the good work.

[@AndyMillard]

Very happy to do it!

[@sunilwaghmode1914]

Nice Explanation ...Thanks Andy...Request to create videos on FRM courses...

[@bradydyson65]

Fantastic. Exactly what you need out of a basic, introductory explanation. Thank you for not using jargon!

[@shankar6070]

That was indeed brilliant sir , ya kept it short and sweet to the point ! The concept just pierced through my dumb brain , thanks 👍

[@AndyMillard]

Thank you so much!

[@NYRM1974]

This is why Financial intelligence is a must in today's ever-changing economy. Whether you're investing in residential or commercial real estate or simply preparing for retirement. Financial intelligence knowledge is ever so needed today. And it's never too late to learn......

[@kdm6732]

There's Brilliance in simplicity!

[@jesusmoreno4501]

Thanks for you explanation. Really appreciate it! Takes intelligence to take a very complicated subject and explain it in a simple and accurate way, not many can do that. Great job sir!

[@MJ-YT-USR]

Very simplified, but a nice starting point to understand a bit more I guess. The kicker is the fact organisations who weren't involved in constructing or selling houses, issuing mortgages or selling insurance products put huge amounts of money in the game too - a game which ended in tears of course. A few who could see the risk and problem made a lot of money though, by effectively bettering (or hedging) the game would end in tears.

[@hugomartin8765]

7 years later: this is a problem that still has not been fixed.

[@HarunRashid-ty3oq]

what a beautiful and insightful explanations. I really liked it. hope see more of this simple nature for complex financial term.

[@AndyMillard]

Glad you liked it!

[@shawnc5322]

I've been trying to read up and learn about CDS for half an hour, confused and Andy just explained it in 3 mins! Thanks Andy, keep up the great work!!

[@AndyMillard]

Happy to help! It was the only way I could explain it to myself.

[@matthewkemper9189]

This was amazing!! I've tried a few different avenues and couldn't quite get the hang of this but you out it so simply and your demonstration was awesome. Thank you!!

[@AndyMillard]

Glad it was helpful!

[@Ra_the_Sun_god]

It’s the Big companies faults not the people anyway but she was like buy a house And thank you for explaining

[@giorgioc8263]

Thank you , best explanation on the web

[@AndyMillard]

Glad you think so!

[@DiamondHeadBoys]

Yea I needed this, it’s looking crazy right now with credit suisee

[@abdullahali1889]

Great video Andy. Well Explained

[@AndyMillard]

Thanks 👍Glad it was helpful!

[@Hamboarding]

Very cool channel! Great to have discovered it with this video on such a random topic 🌞

[@carlos13224]

aging like wine

[@nicholaskirk1356]

Superb explanation. Thank you

[@AriA-wb2nc]

Excellent Video!!!

[@meskinYT]

That was a great way to explain it!

[@monquecoll6525]

I like this way of explaining. Thank you.

[@AndyMillard]

Thank you. It was the only way I could make sense of it to myself!

[@thisisyoutubetv3235]

This was so wholesome.

[@youmirinbrah7549]

its funny that this is still happenning, years and years after. We really dont learn on our mistakes. 2023 here

[@AndyMillard]

We Americans sometimes tend to have a short collective memory.

[@jean-jacquesjibeaux1051]

Thanks for confirming that mortgaging anything and the concept of interest is the mother of all nightmares. It will destroy. I invite everybody to check out joint-ventures and cooperative housing as alternatives.

[@leef1500]

The fact that they bailed out banks with our money, took peoples homes anyway, yet didn't make credit default swaps illegal going forward tells you everything you need to know about who runs the show.

[@chowstar1]

And on that cheerful note.... Shake that money maker

[@hzzzzm]

If and only if Andy Millard were my teacher...Thanks Andy!

[@jennerb7059]

I just LOVE this video!! I have been trying to understand the movie The Big Short and this video just explained the whole thing! Wow, big laugh at the end too thanks!!!

[@laurenzschneeberger301]

wow this guy is absolutely fantastic

[@northandblue2520]

Fantastic video congratulations!!

[@user-fx9kv1mw2r]

Sir u r awesome...love from India

[@bigbarkingdog2010]

Good Video sir. Thank You Dr Burry.

[@glebsevcenco1916]

The best explanation I’ve seen

[@TIznus]

Easiest to understand explanation of the subject I’ve found. Thank you

[@Shreyanshaki]

I've seen movie on the same topic but didn't got to know at that point of time.. and Your two minute video and i got it.. That's called Teaching. Thanks Sir .

[@AndyMillard]

You made my day!

[@dontundra2259]

🤯 this video wrapped perfectly a chapter I’m reading on this subject! Nicely done sir!!

[@AndyMillard]

Glad it was helpful!

[@Wishtap]

Best explanation for CDS. Thank you!

[@suchitc.2595]

Great explanation,quick but clear!

[@AndyMillard]

Glad to hear that!

[@slydogger]

Ok. Now I'm pissed off again.

[@ef7480]

Brilliant! "What could possibly go wrong....?"

[@AndyMillard]

Glad you found it useful!

[@MilciadesAndrion]

Great and simple explanation. I subscribed to the channel. Thanks.

[@AndyMillard]

Thank you for commenting and subscribing, Milciades.

[@TheDocRitchie]

thank you so much. i have been struggling with an article for 4 weeks and could not get my head round CDS. thanks to 'Financial Toy Vision' I think i got it. cheers, from the UK.

[@AndyMillard]

You're very welcome, Doc! Your comment made my day!

[@TheDocRitchie]

@@AndyMillard hahaha, if only everything could be explained through the medium of toys! i am now going to finish this bloody thing and get t to the editor tomorrow. thanks again. and as we say in the UK, cheers mate!

[@prometheanevent]

Beautifully succinct.

[@AndyMillard]

Thank you kindly!

[@adhiti07]

Nice one. Also after the banks knew the risk was moved to the insurance companies, the banks realized they make money mostly on the commissions and started giving loans on applicants with terrible credit scores. And that’s when the real problem began.

[@1999rafinha]

Commissions? Wdym

[@sharkparty1027]

So that's what happened. I wish the Big Short would've depicted it this way.

[@sameerchaudhary465]

Many thanks for this simple explanation!!

[@AndyMillard]

Glad it was helpful!

[@xmandrufy]

Great video !

[@elevenocean4471]

Simple and very well explained, thanks Andy

[@AndyMillard]

Very welcome

[@xSaB94]

Couldn't have made it any easier. Thank you

[@pnachtwey]

Yes, a little simplied. Watching the Big Short helps but even that needs to be explained.

[@robjohnson8214]

Very clear explanation. Thank you!

[@spiritled4390]

Now that's how you describe Credit Default Swaps! I need you to teach all of my series 7 content lol

[@AndyMillard]

Thanks so much!

[@WeaselJCD]

Wrinkle obtained! THX!

[@78236931]

Brilliant explanation

[@wullxz]

That was an incredibly good and simple explanation! Thanks!

[@AndyMillard]

Glad it was helpful!

[@joshnic6639]

@@AndyMillard I still don’t understand how people like Michael Burry made money? Did he short the swaps? If so, how? I mean… how does that look simplified the way you made this video? Thank you for all your help!

[@AndyMillard]

@@joshnic6639I really appreciate the question, Josh. I'm pretty sure I could do a video answering your question in a simplified way, but I have to admit that distilling a complex concept down to an easily digested video is itself a complex and time-consuming process (at least for me), and my time is heavily spoken for these days! That's why I haven't done a video in response to your request. However, I can say this: Yes, Burry recognized the over-saturated mortgage market and sold it short by shorting CDS's. Just as you could buy and trade CDS's, you could also sell them short. You can get the full (un-simplified) story by reading The Big Short or watching the movie. Sorry I can't be of more help!

[@Nirvan1st]

That was awesome

[@elcordobes-i1h]

The one thing you neglected to mention is that the Insurance companies were not required to have reserves to cover their exposure to CDS. This is because CDS was a fancy product designed to bypass the insurance regulations (even tho it was in fact insurance)

[@AndyMillard]

Agree completely, EngleHump. Thanks for pointing it out!

[@samdiesel2000]

Hey dude that's just awesome...

[@cryptopathfinder4536]

great explanation of a CDS

[@MAchannel2024]

great simple video

[@augustreigns9716]

thank you for making it simple enough to understand.

[@diamond9650]

Damnit, after God knows how long trying to figure this thing, Andy explains it in a few mins. Andy could you have a few similarly easy explaining videos on all those bloody derivatives that are traded via markets.

[@AndyMillard]

Ha! So glad it was helpful!

[@hassenmohammed4674]

Just great!!