Tnx for simplifying the $20Bn blowup in under 5minutes. Good job!
@KINGCADEMY3 жыл бұрын
Glad you found it helpful Pradeep!
@worldlivingrealitieswithlc20542 жыл бұрын
Agreed, thanks so much
@anemoneyas3 жыл бұрын
another consideration: maybe guys found guilty of insider trading, market manipulation, and wire fraud shouldn't be allowed to continue trading with billions of dollars
@rubadubmedia2 жыл бұрын
That’s exactly what happened (SEC barred him from trading) and he found the loophole through trading in the private equity business he made. Slimy indeed
@Jordan-Ramses2 жыл бұрын
@@rubadubmedia the investment banks didn't have to do it. This is on them. They shouldn't exist.
@claro12173 жыл бұрын
Thank you so much for the explanation on TRS! I work at a firm where we work with CDOs and some TRS deals. For the last two years I always wondered what exactly a TRS was.
@KINGCADEMY3 жыл бұрын
Thank you Claro, glad it helped!
@techgod36703 жыл бұрын
Ur channel needs to blow up seriously, nobody can explain like u , tnx !!!!
@atillathehun68253 жыл бұрын
Something tells me this guy went short on all those positions he knew would get dumped on those total return swaps and made $$$. This guy is a genius.
@KINGCADEMY3 жыл бұрын
You know what... there is definitely something to be said for that.
@Bprice10001232 ай бұрын
Be difficult to spend the money while in prison. Never a good idea to lose rich ppls money, especially if their Swiss.
@samvid19923 жыл бұрын
awesome explanation. please continue making such videos.
@KINGCADEMY3 жыл бұрын
You are very welccome DotaLove. Many more to come!
@maciejkaczor45743 жыл бұрын
GME - best company in the world.
@Bprice10001232 ай бұрын
Can’t stop won’t stop.
@davidcaruso30453 жыл бұрын
Great video. Very easy to understand. Thanks.
@KINGCADEMY3 жыл бұрын
Cheers David!
@NitishYadav-nc7tw3 жыл бұрын
The best after so much surfing
@KINGCADEMY3 жыл бұрын
Glad you liked it Nitish!
@nellytesis42753 жыл бұрын
Great video! Thanks !!! Waiting for new videos rn
@KINGCADEMY3 жыл бұрын
Thank you Nelly! More to come.
@ravindertalwar5532 жыл бұрын
Feeling Blessed and Expressing Gratitude my God 🙏 I love you so much
@KINGCADEMY2 жыл бұрын
Thank you Ravinder!
@gavharoy91252 жыл бұрын
Chose the video cause it was the shortest, taking the final exam tmrw on Financial risk management, and it was the best explanation within the time given, saved a lot of time, thanks a lot!
@KINGCADEMY2 жыл бұрын
Thanks Gavharoy! Really glad it helped and you found it useful.
@s0ngsterr3 жыл бұрын
Supperr underrated... Thankkss mate!
@KINGCADEMY3 жыл бұрын
Too kind! Thanks Ankit.
@mkmishra.19972 жыл бұрын
best explanation of this incident
@KINGCADEMY2 жыл бұрын
Thank you Manish!
@youtubasoarus3 жыл бұрын
Seems to me if they collude with each other to crush a company on margin they can do so. And there seems to be very little regulation about it. These margins are allowing instability in the market and should be curtailed by regulators.
@aryasamaya2 жыл бұрын
Great video, perfect explanation in less than 5 mins.
@KINGCADEMY2 жыл бұрын
Glad it was helpful Claudius!
@densfloar3 жыл бұрын
Indeed. Amazing explanation. Subscribed!
@exiledazazel18442 жыл бұрын
Dang, very well explained and put together! That guy is a genius 👏!
@KINGCADEMY2 жыл бұрын
Thank you! Glad you liked it.
@782369312 жыл бұрын
That explanation was brilliant, you’ve got my subscription
@saurabhj19772 жыл бұрын
I used this explaination in one of the interviews. Thanks a lot.
@KINGCADEMY2 жыл бұрын
Really glad it helped Saurabh. My pleasure.
@mohamadhannawi2022 жыл бұрын
finally a proper video
@KINGCADEMY2 жыл бұрын
Thank you Mohamad!
@markr0022 жыл бұрын
Really helpful summary. Thank you. 🙏
@boniprakarsa50903 жыл бұрын
Very well explained thx for sharing !
@KINGCADEMY3 жыл бұрын
Thank you Boni!
@boniprakarsa50903 жыл бұрын
Your welcome keep up the good work mate ..
@CosmicSeeker693 жыл бұрын
Good work Kieran - the only thing is, as I understand it - all of the 4 mates drunk at the same wine bar and each knew that the other had lent Bill $1000. Horse and stable door in my book. Question: is this big enough to create another Lehman Brothers event somewhere down the line?
@KINGCADEMY3 жыл бұрын
Thank you Graham! You raise a good point. This one event no. However what slightly concerns me is how many more of these under-the-radar funds are similarly exposed like Archegos was. I'm hoping this is a one-off but there could be thousands, each over-leveraged on one or two stocks. I think these large investment bankers need to remain vigilant on who they lend to and how much margin they let people play with.
@RonnieTerryJr2 жыл бұрын
Super informative video - thank you for simplifying this!
@ScottsStockDueDiligence2 жыл бұрын
wow!
@readdoplaychill2 жыл бұрын
Thank you, pretty clear and succinct!
@KINGCADEMY Жыл бұрын
No problem. Glad you liked it.
@lucaa.96632 жыл бұрын
Great video! Simple breakdown of what a trs is!
@KINGCADEMY2 жыл бұрын
Many thanks Luca!
@GavinBull1 Жыл бұрын
Did they definitely buy the underlying the other side? My understanding is in a TRS the side paying return of the asset doesn’t have to own it
@techgod36703 жыл бұрын
Plz make a video about liquidation preference and reverse vesting in startups
@greatndit2 жыл бұрын
i think it's not 100% bill hwang fault . those investment banks are also causing their own loss .
@Bprice10001232 ай бұрын
This is the correct comment. Even if over leveraged - if the brokers had hedged the positions, which is kinda their only job, then it wouldn’t matter nearly as much. Due to having no hedge, they’re just as trapped as Hwang was. It really doesn’t matter much that he had too much exposure - smaller exposure could have resulted similarly.
@chrisbarney16092 жыл бұрын
fascinating! well made
@Jordan-Ramses2 жыл бұрын
I blame the investment banks. They are basically giving credit to a man convicted of fraud. The whole point of a TRS is to create leverage. They got greedy.
@Jayd3z Жыл бұрын
the question is if he sold prior to the "dip", would he be considered an insightful and successful investor instead? we need to be mindful of who we consider our role models. Most of them sold before the "dip" or perhaps haven't yet encountered the "dip"
@edwarddavis68273 жыл бұрын
Very good review
@KINGCADEMY3 жыл бұрын
Thank you Edward! Glad you liked it.
@zzznap9703 жыл бұрын
Love your videos! But one question: does he have to use total return swaps to get the leverage? Plenty of options can give him leverage. Seems to me that he uses TRS primarily to get away from public scrutiny.
@KINGCADEMY3 жыл бұрын
Kath, thanks! Glad you enjoy the videos. That is a good question and I think you are probably right!
@aeron51583 жыл бұрын
I didn't understand why the investment bank acts as intermediary instead of archegos investing directly. Could some one clarify? I wanna know the risk and reward involved for the IB's to be specific.
@KINGCADEMY3 жыл бұрын
Its all to do with margin and buying power. Investment banks allow investors to trade on margin - meaning that they can trade with a lot more than they would otherwise be able to put up. IBs do this as they could potentially earn a lot more from the trades. However the downside as I spoke about is that they need to be able to rely on investors to keep up with their margin calls if positions go the wrong way.
@Rey_B2 жыл бұрын
very well explained, can i have this video in English pls😂
@HiFiAwardTour2 жыл бұрын
So TRS’s are just leverage?
@viksra2 жыл бұрын
What program are you using to draw on?
@KINGCADEMY2 жыл бұрын
Hi Viksra, I use Photoshop for the drawings, then Quicktime and Adobe After Effects for the recording and editing.
@viksra2 жыл бұрын
@@KINGCADEMY ah okay, thank you. It looked like some sort of sketchpad application with the way you have the colors on the left and the chalkboard in the background. Nicely done, and also good explanation of swaps.
@KINGCADEMY2 жыл бұрын
@@viksra Ah yes I used to do these videos and draw and record in real time so i used a colour palette to save time switching between colours. Thanks man I appreciate it.
@Stavros_Steve_Deriziotis Жыл бұрын
Well if you figured out what custodian bank was providing him with the best return rate, then he could utilize the other custodian banks as a pyramid biding up his initial position. Definitely not a good idea!
@icraftcrafts86852 жыл бұрын
so 2001 was 2000 and hwang
@moeeslamipour54643 жыл бұрын
There is no way to exactly who made and lost money?
@thomasucc4 ай бұрын
This is a perfect case for taxpayers to bailout
@piyulkothari3 жыл бұрын
What would be the probable interest rate??
@KINGCADEMY3 жыл бұрын
in terms of?
@piyulkothari3 жыл бұрын
@@KINGCADEMY annually which banks charge or the fees
@K4R3N2 жыл бұрын
TRS I remember these when I was at BofA, what a shitty product. Should be banned.