The difference between bonds, notes and bills

So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Paddy Hirsch explains. #MarketplaceAPM #EconomicExplainers
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[@Danny_Robles]

This video still has value 14 years later! Thank you!! Now I need a drink Lol

[@zxxz220]

Very simple language, I understood them quickly. Thank you

[@MAGA_Extremist]

I still had trouble

[@mikeh3175]

Thanks, this is 2020 March19. And your words are ringing so true...."almost certain there will be liquidity, almost certain the USA economy will be strong"....wait! Oh shit, we have a problem Houston!!!

[@MAGA_Extremist]

Here in 2024 Bidenomics is great!!! 😐

[@hjorturpalmipalsson4521]

"and frankly.. very badly, needing a drink" - That made me laugh! :) Awesome explanation!

[@zacherysaucier6747]

I seem to remember him leaving most of his videos on that note. I might wrong it has been awhile since I watched them.

[@Sonu-pb8ec]

A hidden treasure in KZbin.May this channel continue till infinity.

[@avidvampirehunter6503]

I just love your fast-paced teaching methods. Absolutely brilliant!

[@1StefenM]

You the man Paddy Hirsch! Thank you for making these

[@oXaiishaXo]

Thank you for your video. I'm majoring in finance at the moment and the way my lecturer explains it is so confusing. This has made it so much easier for me to understand. So thank you :)

[@benziegler3611]

Crappy finance professors seem to be the third certainty in life (after death and before taxes :)

[@jamesmorton7881]

Uh, return = ( 98 - 100 ) / 98 X 100% = -2 / 98 X100% = - 2.04 % error = .0004 X 100M = $40,000 wath the math

[@macummings7818]

You were probably needing a drink to start off with! 😉

[@EnFuego79]

If you really want to piss off your professor, show how gov't debt gets issued at the NPV (net present value) of the currency, and then how the creation of the debt itself, the debt the recipient just bought, through the cantillion effect, results in the gov't paying you back pennies on the dollar compared to what you paid for (currency debasement). Then ask how exactly gov't debt is different from a giant Ponzi scheme. They love that. If they try and counter by referencing CPI and GDP numbers, let them know you have a bridge in Brooklyn you'd love to sell them if they believe those numbers.

[@SuperMiketheone]

Thanks! Your explaination is very clear for those of us that know nothing about this topic and want to learn more.

[@om5335]

You are so talented in explaining things in a simple manner

[@TheJanagan]

Thank you very much. Today i simply understand the difference between bonds, notes and bills. I am Janagan from Sri lanka

[@GroundlessSource]

THANK YOU for this video! It was very helpful!

[@benramos7131]

This is one of the best websites for financial advice. The more you learn about finance the more you wish you were just born to rich parents!!!

[@ngalex03]

thank you for these lessons. I learned alot! please keep making them.

[@kanshelmyles-lopez6359]

thank you I'm learning a lot by the way you explaining and breaking thing down..

[@davidalen9279]

superb explanation. thank you.

[@spianny]

Well explained and easy to understand. Thanks!!

[@MissEnglish123]

Thank u for ur explanation, u make it so much easier to understand 👍🏾

[@mattcoyne7696]

Hilarious ending! Thank you

[@asharamisal4382]

Wow what a wonderful, informative, and clear detail video - thank you!

[@vanessazamorano4663]

Thank you for explaining it so simply!! :)

[@POISONdjnumber1]

Thank you, love your lessons..

[@TRENDVFY]

Me still watching this on 04/19/21 - good explanation

[@designertjp-utube]

Hahaha! And Me watching this in the final approach to *Q4* *2022* to see if it's still worth it to buy anything from our gridlocked Government. At least we're still holding out better than _The EU._

[@rozanmazani5435]

Wow from Zimbabwe this is great big mind

[@tomkeating522]

excellent to the point and easy to understand thank you

[@ganesh_speaks]

you are awesome teacher !!! thanks for sharing info ......

[@sidsification]

easy n well explained

[@AshleySmith-ek9fw]

This was a really informative video, thank you!

[@aswathica508]

Thankyou for the succinct explanation!

[@gmann7774]

Fantastic explanation

[@josebasso416]

Thank You for teaching this

[@BryanAndradeNYC]

Awesome videos. Getting a crash course in economics!

[@josephanglim5709]

Great explanation! Thanks!

[@NathanHQ]

Nice video thanks 🙂

[@swingtrader8817]

superb!! very clear explanations...

[@erikreid603]

Love this video, helped me more than the Kaplan videos for sure.

[@coachtony5200]

Well explained. Thank you.

[@williamd7161]

Thanks. That's very infornative.

[@electricengineer624]

excellent presentation , Great job .

[@patrickt873]

Good video. I put my savings into metals but this is always good to know for short term money parking

[@nguyenkd811]

thanks for your great Videos... my professor actually show one in the class. please keep up your great works!

[@rwjackets]

This guy is awesome.

[@asrarbw]

Awesome mate!!

[@ziyathalikhan4689]

Very Simple Language anybody could understand, thanks for your videos. Would love to see #marketplaceAPM adding more videos

[@roryandsaradryburgh711]

Very clear

[@whatsforlunchfatass]

Even a simple simpleton like me can understand you. Thanks.

[@marketplaceAPM]

Thanks for watching!

[@OdieD]

@@marketplaceAPM Are you from northern ireland? sounds like it...

[@1000ralphw]

excellent

[@tabishkhan6440]

Very well explained :) Thank you :)

[@robertrobert2981]

All your videos really helped me They leave me thirsty for another drink of a video

[@jaybro3713]

Nice explanation sir.

[@fennecfennec5234]

thank you

[@vitorgoncalvesdesouza5523]

It was great explanation!

[@zhayat]

Great explanation on #bonds thanks 👍 #money

[@user-hz5cr8hm8w]

really great video

[@soulmate805]

Thank you for the thorough explanation regarding the bonds, notes and bills. Is there a minimum amount regarding the bills issue by uncle Sam.

[@emmmoo8631]

thank you brill video

[@spiritualshaz4347]

Great video

[@carterfinance2376]

Love this guy

[@seekerthinker6914]

Thank youuuuuuu

[@kevohmistari]

The ending is priceless 😂😂🔥

[@MrHarpreet99]

I love this guy.

[@Jeff-Wfrd]

Me too!

[@LiguoKong]

Well explained, even I got it

[@almondjartone1206]

this was good

[@JewelzFinazzo]

Great video. I just started investing into the stock market and bonds this year.

[@gustavcalder4514]

You better find a job

[@jpxcar]

Great explanation, thank you! 14 years later does not matter! :)

[@financeabcs]

Nice video!! 😎

[@adammetzker5261]

Well done. But where do the bonds trade in the market place? How do I actually sell a physical bond that I hold ? Where do I store the bond ? Is it insured? Is it all online ? Sorry for all the questions trying to learn here...

[@marketplaceAPM]

Adam Metzker Good questions. There is no exchange, like a stock exchange, where you can go to find a market for your bond. Bonds are traded "over the counter" . You need to find a buyer, or a broker who can connect you to a buyer. You can buy bond insurance from a bond insurer. You can get a paper certificate for your bond and keep it in a lockbox. Or you can use a brokerage and keep it in electronic form.

[@alphaomega5923]

Mathematic is about numbers and rules. The same can be said about managing money.

[@DCUPtoejuice]

@chillercm if the economy kicks off, we'll likely get rampant inflation, so the commodities would be strong still.

[@winstonq82]

what happens in a recession like we have in 2008-9? Are the bonds still save?

[@Ru4444]

Does these protect u from hyperinflation? Thank u.

[@dennisakuetehquaye3970]

how do i calculate the interest i will earn on a 3 month treasury bill of 5000 with 21% interest rate?

[@Larkvall]

I agree. You are better off buying toilet paper than bonds, notes and bills. Maybe consider buying copper also..

[@sollicortado4774]

but that last line tho hahahahha. thanks for this!

[@IC1101]

@jrewert Sorry what is ''bullion''?

[@TheReamsal]

What are the possible reasons a public traded company issue Senior notes?

[@benziegler3611]

Thanks for the video. It was informative and to the point. The only eyesore (for me) was the 30 year Treasury bond being priced at 2% and the 7 year notes priced at 3.5%. Generally the higher the duration the higher the yield. (Shouldn’t our default assumption be a rising yield curve?)

[@vincentconti3633]

I believe he was just throwing out numbers as an example!

[@shaunsensei6948]

I have the same question. If in getting better return on a shorter time period then why would I choose the longer bond

[@TransformChantel]

At 5:00 mark, with this recession coming in 2023, I feel like the author of this video will be saying the exact opposite

[@jorgegomez524]

better do an update on this one on the year of 2019 lol

[@stayanddrown]

Who in the hell thinks buying debt from a Government that's now about 20 trillion in debt (not even including unfunded liabilities) is "secure"? Especially considering they now have to borrow more to pay off these debts from borrowing before. Either way, great video, I just discovered your channel, looks like there's a lot of great info. Keep it up! Ha! Started writing this comment before the end of the video, looks like you mentioned my concerns.

[@kungmaster]

+stayanddrown Its because the Government cannot fail...if the government fails the entire system fails...Thats why financial institutions are taking risks, because government bails them out , because they are a necessary entity. If the entire economy collapses, we might see world war 3 because war is the only way to destroy debts owed, thats what happened in world war 2.

[@shaunsensei6948]

@@kungmaster great response!

[@maazsiddiqui9527]

Excellent video. Can you please explain how does the government pay back the securities, that too with interest? What is the source of the government's income? Thank you.

[@designertjp-utube]

Hahaha. A 4 color green printing press, Baby.

[@musak.4068]

@@designertjp-utube lmao

[@martytrain]

Is there any way at the moment that the government can get a grant from the Fed that has no debt attached to it?

[@nathanmurdock9481]

Patty, you’re awesome but you always leave me very much needing a drink😏

[@marketplaceAPM]

Cheers!

[@xrprophet3523]

Problem is the Amount due the CC Account is really due the Minor / principle / Estate account. The CC holder isn't the debtor, The CC Account holder; the Bank is. New money was created when the bank applied the credit to the credit card purchase. The bank is liable to repay that public debt (application of credit) not the card holder.

[@icyzoneinfo]

Very nice video. Where is the guy from?

[@ala4776]

What was the last part about? He threw the marker

[@rizzorepulsive7704]

I love you.

[@jextreme22]

Could someone please explain more about the interest? How is it fixed for bonds and notes but not bills? If you are buying it at one price and selling it at another, isn't the interest always fixed??

[@JJ-ym8bu]

A bond and a note over a 10 year period and a 5 year period you will get a regular coupon say every 6 months or a year. When you buy the bill because the period is less than 12 months or 6 months or whatever you will get your return by buying the bill at a discount, because your not going to get a coupon within that period. Once the bill matures at face value thats your return.

[@laurieskerchek4622]

Sorry I am ignorant to all this I have a document from 1925 that says Bond on it from my great grandparents wondering if its worth anything or its just a document ?

[@almay9962]

is the interest on these taxable?

[@kishoreanandvenkatarajulu2225]

Hi, Its clear what is bond and bills and how they are making money on it. Then what is govt securities and how they are making money on it?

[@Serpolinidate]

Hey Paddy, but if things are that simple, why I should take bonds over notes? I could get my capital sooner and at a higher interest rates: am I wrong or it violates somehow the first principle of financial math? A dollar today worth more than a dollar tomorrow (for that you should pay me something for the disposal). Would be great to know why! Thanks! ;)

[@Nanofuture87]

He just made up numbers. In reality (when I typed this), the most recent 7 year note issued at 1.75% and the most recent 30 year bond issued at 2.5%.

[@MrBodacias402]

Nanofuture87 could you help guide me through the process are you doing this too?

[@cosmosgato]

Buy index funds Stocks have overwhelmingly out performed everything else over any reasonable time period.

[@mwong987]

Why is the interest rate for a bond less than a note?

[@Themessageislam1234]

Why did he throw the pen lmao! Nice video tho

[@wolffvera1]

Watch all the videos waiting for the end...

[@patrickr2686]

I like treasury investments because there's no state tax applied to them only federal

[@user-qd3cg4lu3e]

👍

[@Sebestner]

If bonds are constantly being traded on a very liquid bond market, doesn't their price fluctuate? So when you sell, you may actually get less (or more) than you paid for them!

[@musak.4068]

fixed rate

[@Koala-hb7hc]

Does this seem like a good investment for a younger individual, sure it is safer than the stock market, but it doesn't seem like it's much better than putting your money into a bank with an interest rate similar or greater than the rate the bond/bill/note goes for. If anyone has any information be sure to respond, I'm interested in hearing feedback.

[@vincentconti3633]

Well if you can get a better interest rate from an FDIC insured bank deposit you would be better off. Depends on if you are interested in locking in a rate for long term.