What is a swap? - MoneyWeek Investment Tutorials

Tim Bennett explains how an interest rate swap works - and the implications for investors.
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[@kortyEdna825]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

[@carssimplified2195]

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@brucemichelle5689.]

It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.

[@PatrickFitzgerald-cx6io]

My partner’s been considering going the same route, could you share more info please on the advisor that guides you?

[@brucemichelle5689.]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Colleen Rose Mccaffery” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@PatrickFitzgerald-cx6io]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@roydenpereira5726]

To explain something like this in a way that someone new can understand is really admirable.

[@kelliezhang6750]

Exactly!

[@bdsheiladiaz]

Indeed! 😍

[@liujasmine8392]

Totally! I think I got it

[@nickmhc]

He’s the best

[@sknasir2280]

@@kelliezhang6750 O

[@markchannel9962]

We need to bring this guy out of fucking retirement and make him a fucking national treasure

[@juanrave7864]

Mark Channel c

[@akhilesh718]

Best explanation of SWAPS I have ever seen

[@JoeBlo2]

This man is a pedagogical wizard. Shame he stopped making videos.

[@markizmendez6431]

Did he really stop?

[@fahadus]

Thanks Dustin!

[@rachnana9904]

@Dustin Suryadi Thank you for the info!!!

[@bassmanjordan1139]

He's doing vids on killik and co's channel now.

[@ronj5407]

follow his blog 'moneyweek.com'

[@AlzubairAlsenani]

I watched a 2 hours lecture twice just to know and understand how swap works, but I got nothing. I watched this 15 minutes video only once and I got the whole idea. Very grateful

[@vunguyenchannel]

Same , my teacher is so bad

[@abdulnoahmansaray383]

This concept was real hard to grasp. This video made it look easy. You are a good teacher.

[@chachachalek]

Better and clearer explanation than a whole 3 hr class with my professor

[@riddhikulkarni1802]

This is one of the best videos on SWAPs you could ever come across. Thank you for coming up with such a brilliant video Sir.

[@mutlugundiler4458]

He is great. Why did he stopped making videos? How can we get him back to teaching.

[@felixlagemann8109]

This guy is for some reason hilarious, yet such a great teacher! thumbs up all day every day.

[@winsterrox5913]

I am studying for an exam right now, and this has come in really handy. I really could not understand the concept of interest rate swaps earlier from text books and you really explained it in such an easy manner. I am so stunned and genuinely happy that I now understand this concept. Thank you. Thank you so much for explaining it in such an easy to understand way🥰

[@PRiiSCiiLLA8]

this is brilliant content - I was never confident with explaining what swaps are and now I feel like I could confidently go into my interview to explain! thank you so much!!

[@MrSupernova111]

Extremely well explained! I kept asking where the original loans were coming from to better understand why the two companies need to enter into a swap agreement. You're video is the only I could find that answers my question. Thank you!

[@ronj5407]

You just explained one of the most complicated practice in finance in the easiest way possible. Great job!!

[@sharonpan9714]

I can't say how appreciate I am. This video gives me the feeling that "that's what swap is about!!!" how amazing! Thank you so much.

[@siddharthmudaliar9187]

Sir, I just learned the the Interest Swap and taught it to 7 colleagues through class room training. Once again Thanks a lot. I have been assigned a new Project - Canara Bank Derivatives where the implementation is going on. Your understanding way and constructing the sentences wisely helped to understand the concept/functionality.

[@g1kluang]

i would have aced my economics if this guy thought me!

[@KingTheRat]

JeevS GOne Still fail your spelling test though

[@romanarashid5590]

Thank you very much.I couldn't understand this for many time.But now it's crystal clear.Thanks again.You have made my day.

[@FHIPrincePeter]

A very good and clear explanation of an OTC swap. No long winded introductions simply concise and to the point.

[@eraniklihsuk]

He has explained a difficult and complicated topic in a simple, objective manner. Best explanation I have ever seen.

[@Alfy47]

What a lucid and understandable explanation of a swap. Why did he stopped posting his tutorials and sharing his knowledge ? Anyway, my thanks to him.

[@liujasmine8392]

You explained the hard finance concept in a so vivid and gentle way~~ I think I really got the business model of a swap bank Making money by offering better financial deal to clients! It’s really the magic of finance

[@vanessabratosin6497]

The best explanation on IR Swaps I've ever heard! Thanks!

[@nalin7863]

No one could have explained it better. The way you teach is amazing. Thank you, sir :)

[@mthokozisimbambo2831]

This video has clarified swaps and relieved me of pre-exam stress and anxiety. thank you TIM

[@preetishgungabissoon1761]

My lecturer explained this and nobody understood anything but here everything is clear. Great job!

[@Chloe94169]

YOU ARE A.M.A.Z.I.N.G. saved my life preparing for the final exam!! this is the BEST explanation EVER!!!

[@skinnyDH]

0:51 As I type this on 02/11/2017, it only took the BOE another 6 and a bit years to finally do the rate hike haha.

[@yves5445]

fantastic, you really did a great job explaining this in such an understandable way, didnt even had to pauze or replay it. well done!

[@tramdhan111]

your explanation is really.. really much more clear than what the professor gave in the class... THANK YOU..!!

[@ripunjaya]

This is the best video on swaps that explains the basic concepts extremely well

[@Davi_uk]

You make a strong difference to many. BEST TEACHER EVER!!! Thank you so much!

[@marloncampbell4537]

After watching many videos on this topic, your explanation has made me finally have an understanding of this topic. Thanks a million Sir.😊

[@aisyrinjanita3220]

Such a great video. Very simple to understand. Get yourself prepared for the upcoming CFA exam, guys. Good luck!

[@maciej5264]

You kept me fully interested until the end. You enlightened me in a moment when you said it is financial magic. It is the simplest and straight to the point IRS explanation I've ever found.

[@yitingjin2354]

Thank you so much for making swaps so easy to learn!!! Thanks a lot!!! Better than going to my lectures actually!!!

[@siddharthmudaliar9187]

The best Interset SWAP learning VIDEO ever.

[@dijital.binali]

Thanks man. This video really helped me understand the basics of swaps. It even helped more than an hour of reading.

[@melanies2849]

That was awesome! So clear cut! I am better prepared for my final now! Thank you :D

[@lynnn9154]

Best explanation for SWAPS! TYVM!

[@Ateelol]

I am an engineer undergraduate and just wanted to inform you that your new job is to teach me all the terms that are flying around in financial movies. Thank you for that, keep the good work up :)

[@nouranshehata4311]

You are probably the only reason I now have a better chance at passing my final on Tuesday.

[@SmartKidLol]

I spent three hours on my lecture notes but i still can't understand the concept of 'swap'. Your video helps me a lot. Thank you!!! :D

[@shaswatmohanty7907]

Amazingly explained the concept of SWAPS using perfect example. Thanks :-)

[@amymar771]

This is the best explanation ever for newbie, if you know absolutely nothing about swap or are confused. He really explained it as you were a five year old which is something I wanted lol

[@vivat_in_aeternum7721]

I'm not even a native English speaker and this explanation is the best available on KZbin

[@willyoctavianus8691]

What an educator you are, Sir! Salute

[@tg3470]

This guy explains these topics in a matter that is very easy to understand. Thank you sir.

[@xevious2864]

In my 4 years of business school this is the best display of teaching I have ever seen; this man should be a finance professor making six figures.

[@wenjessi]

Finally understand “swap” 😀 Thanks!

[@riddle1187]

This was very helpful in understanding a rather complicated concept. Thank you!

[@Yashad1000]

Explained in a very concise and accurate manner...! Perfectly understood d swaps.. Thank you very much..!

[@janettemurillo9357]

Thanks for the explanation. Your videos are a great help. The way you explain and use explamples in your videos are so great. it makes such enjoyable to watch it and learnt it. Thank you so much.

[@DylanBasu]

Thank you very much for explaining a swap. Was feeling very grateful for this video. Good job!

[@pragyaverma9665]

Thank you for all the knowledge that you have imparted with such ease of understanding. I am a fan of all your work ! :)

[@siddhantgala7461]

Amazing explanation. No text book has cleared my concepts like this video. Keep it up and thank you :D

[@user-nu7zo7qs6s]

Learning for my state exams - Mr.Bennett you are saving me this week!

[@meenakshiuk6965]

The most easiest explanation on swaps. Amazing

[@adhambashir]

I love your videos Tim, very well thought out and presented clearly. Thank you!

[@lulusebola8090]

I finally understand this concept! Thank you.

[@AltoPianista]

wow...the way you made it look so easy is incredible. Thank you so much !!!!

[@BasementR1]

Thanks a lot Tim ! Couldn't wrap my head around the concept, now I can !

[@MargoSengupta]

You are AWESOME! I was looking over my boyfriend's shoulder and asked what a swap was and he didn't feel like explaining. So I watched this and now I'm talking to him about LIBOR and shit. THANK YOU

[@GiteshBajaj]

This video is great... it explains swaps very clearly.... THANKS

[@schulden93]

Thank you! Great video, I wish my professors were that good!

[@imfallingooo]

thank you!!!! greatest and easiest explanation to understand in the entire internet!!!

[@GanjaPharmzor]

I can't possible grasp the fact that anyone could come up with this.. Really ingenious stuff!

[@tatianacz6813]

This video is f.. brilliant. No one explained it better. Thanks.

[@mangeshshelar7375]

This a simplest and amazing video to understand swap! Thanks

[@GSCSoftware]

Thanks for explaining this in a really clear way, great video!

[@yingwang7084]

Man, i know only the basic of finance, but i think i understand most of the video. Thanks.

[@kingcobra071]

you are genius!!! just loved the video.....easy, simple. thanks.

[@shri8203]

Very 1st time i understood about Swaps. Thanks

[@kpchuah]

Crystal clear information, thank you

[@floralics]

i have been doing marketing throughout uni. but i have decided to apply for an internship at MS. so here i am. do not know what does equity swap means but now i do. thanks!

[@yosefbakali4567]

Thank you for the explanation! Very good quality!

[@TheMalevolentDeath]

Sir, you are amazing! i understood now what a swap is and believe it or not i spended over an hour trying to understand it and i couldn't, for that you have my appreciation and a like+fave. Again thank you a lot kind sir.

[@usernameBeatles]

Very clearly illustrated. Love this fella.

[@larryporter3744]

YOU DO A WELL JOB OF EXPLAINING!

[@besongbesong6434]

Very explicit and detailed Tim. Thanks, I now get it.

[@cyberjet2]

Brilliant ... your way of explanation is simply brilliant !!

[@kunkro20]

Crisp and clear explanation. Thanks Tim

[@williamwu117]

nice presenation! Your speaking speed really help non-English speaker to understanding swap! Thank you

[@makpae007]

Outstanding explanation! You make it look so simple.

[@caipatrick6866]

Thank you sir! Your explanation is simple and easy to understand!

[@Cnctax]

So easy to understand. Very well done!! Thank you

[@theolukonde2326]

This is brilliant, thank you for simplifying this topic for me.

[@Wayne1517]

This man is an excellent educator.

[@MrRedhotchili21]

I wish I would've watched this during my Money and Banking Class last semester. It would've saved me a great big headache trying to piece this together off my professors lectures.

[@xiaomengzhu5793]

This is MUCH more useful than my stupid CPA material, thanks you so much!!!!!!!

[@achawl]

Hi Tim! Great, simplistic explanation of the concept...!!! Thanks

[@HaveAGreenDay95]

This really helped me study for my FRM exam tomorrow!

[@divisharma2852]

Very well explained. Thanks never understand swaps better than that.

[@vinitsharma9480]

Very Very Cleared explanation of SWAP

[@tommaso99]

fair enough mate. As i said at the beginning, it does convey the theory well, and for what it's worth it's by far one of the better ones on youtube for doing that.

[@MoneyWeekVideos]

Actually I might do a basic currency swap soon. Caps floors and collars are interesting too but require some background knowledge about options (a cap is just a string of options, as is a floor, with a collar being the two in combination). Thanks for the suggestions. Tim.

[@peterlu4088]

Great explanation and it does help me to understand the concepts! Please keep it up!

[@conniedashiell2656]

Great video! He was clear and got straight to the point. Thank you so much!

[@casperphan8792]

Finance is a magic and this teacher is a magician. So much admire.