Forward Rate Agreements Explained | How to Calculate an FRAs Value

In this video, Ryan O'Connell, CFA, FRM, demystifies Forward Rate Agreements (FRAs). He explains what they are, how they work, and how to calculate their value. Learn how to use FRAs to hedge interest rate risk and unlock new investment opportunities.
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Chapters:
0:00 - Forward Rate Agreements Explained
4:35 - How to Calculate an FRAs Value
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

[@RyanOConnellCFA]

🎓 Tutor With Me: 1-On-1 Video Call Sessions Available ► Join me for personalized finance tutoring tailored to your goals: ryanoconnellfinance.com/finance-tutoring/ 📚 CFA Exam Prep Discount - AnalystPrep: ► Get 20% off CFA Level 1, 2, and 3 complete courses with promo code "RYAN20". Explore here: analystprep.com/shop/all-3-levels-of-the-cfa-exam-complete-course-by-analystprep/?ref=mgmymmr

[@Odyssey947]

Legendary explanation, currently learning derivatives at Uni of Queensland in Australia

[@okechukwuutazi9373]

Good video. The interest rate used for discounting the gain is the floating rate

[@perkelator9277]

Very intuitive explanation. Thank you so much.

[@RyanOConnellCFA]

You are welcome!

[@perkelator9277]

@@RyanOConnellCFA Professor, would you happen to know a sheet to answers of John Hull's newest derivatives book? Thank you in advance

[@victoricus1]

thank you, Ryan, these valuable snippets of info keep me in the loop of studying cfa curriculum

[@RyanOConnellCFA]

It is my pleasure! And thank you for keeping up with the videos

[@zunaidrafique4148]

Very clear explanation, I was struggling with this topic in class, thanks!!

[@RyanOConnellCFA]

I'm glad this helped!

[@minasalahshoury8426]

Thank you for your helpful videos. Please keep doing your great work!

[@RyanOConnellCFA]

Will do! Thank you for the nice feedback

[@theilsguy]

Fantastic video once again Ryan ! Thank you very much Would you mind tackling the issue around the convexity bias between interest rate futures and interest rate forwards ? I.E why do futures and forwards don't experience the same convexity changes ?

[@RyanOConnellCFA]

Much appreciated! That is a good idea for a future video! I can look into that one down the road. I'll warn you, I've got a bit of a large backlog right now though

[@theilsguy]

@@RyanOConnellCFA Brilliant Ryan ! Thank you for considering the request :)

[@ShashankSrivastavaFinance]

Looking cool in moustache,kind sir !! 😊 Concise explanation,as always!! 👍

[@RyanOConnellCFA]

Thank you Shashank, I appreciate that!

[@Phoebonaccii]

Thanks man, great video

[@RyanOConnellCFA]

No problem! I'm glad you got value out of it 🙏

[@user-ng1ru6dn7j]

Amazing, thank you🙏🙏

[@ThatsLifeDude]

i love you ryan