Financial Leverage
"Whenever there is turmoil in equity markets, fund managers run home to the bond markets for an explanation." - Dan Trub
Financial Leverage
"Whenever there is turmoil in equity markets, fund managers run home to the bond markets for an explanation." - Dan Trub
8-1: Debt Concepts & Definitions
Practical explanation of A) debt concepts and definitions (principal & interest, issuance & maturity); B) debt instruments, (discount notes, interest-bearing notes, annuities, bonds, and amortized debt); and C) securitization of debt instruments.
8-3: Principal Debt & Interest-Bearing Notes
Explanation of Discount Paper & Discount Notes, which make a singular payment (the principal) at a specific future date. The market values these and other securities through prices and yields, which are discussed. This video also introduces how to value debt instruments with a financial calculator.
Explanation and Valuation of Annuities, which make a fixed, regular-interval payment through a specific timeline. This differs from amortized debt, which is typical for car loans and mortgages. This video also introduces how multiple periods-per-year influence the valuation process.
A bond is principal debt security where explicit, intermediate interest payments are made in the form of an annuity, known as a coupon. The details of bond terms, yields, & coupons are elaborated in this video.
Applications of Financial Leverage
9-2: Money Market Securities & Valuation
Valuation of principal debt securities with maturities less than one year, discussion of money market securities by type.
9-4: Capital Market Securities & Valuation
Attributes and features of bonds and other capital debt market securities.