Interest Rate Swap Explained

This channel is so underrated

whoever predicted that 2020s rate will be high, did the math a bit too accurately.

So, let’s assume my company asks for a 100$ loan. The lender makes me pay the fixed rate + margin costs. When I do the SWAP with the bank, do I pay the bank 5% (fixed) of the 100$ that I asked for? And does the bank pay me a variable % on the 100$ that I gave them?

Beautiful explanation!

thank you for this! : )

Much more understandable compared to my lecturer class lol

I work in DCM, and I found this very helpful! Thank you!

Can you do this type of videos on all instruments of stock market and money market? Please, cuz it is very easy to understand subject from your videos.

This animation is brilliant! Thank you

so so helpful

69th comment

its really useful to understand the concept of Interest rate swap. Thank you for the entire team from India

Nicely explained.

One of the best/clearest explanations for swaps & amazingly done under 4 minutes. Thanks a bunch. Appreciated it

I went through many materials and videos, never grasped idea of swap, this video helped learning the conept in just 3.3 minutes only, thumps up

explained in a very simple yet effective manner !!!

What is a contracted rate?
Or how to read a contracted rate

Thank you!

Amazing

I cant stay focused.. i tend to close the video down and go play video games.. any advice to stay 120% focused please?

why do fixed rates change independently on variable rates? Surely, if variable rate is low, e.g. at 2%, it signals consumption would increase, so confidence is strong, so fixed rate should also be low, right?!

Absolutely stunning! loved every second of the explanation & also learnt from it. Keep it up!

great video!

Great explanation !

Ur too good

you know financial institutions are criminal when they start making this shit so complicated..

How did u do the animation??

One of the best videos on this topic.... appreciated :)

cleared everything in less than 4 minutes! thank you

Thankyou so much and the animation was really very professional .

4 sins cause greatest corruption to human soul&earth, for such, God promised (in Quran) eternal hellfire in judgement day:

1-Worshipping another deity with God

2-Murder

3-Adultery

4-Habit of Eating Usuary/Interest

Can I do a swap to get the audio at a fixed rate?

Thank you. This was an excellent explanation!

Very useful video! good job :)

Nicely done!

Great Video! Broke down Rate Swaps to an elementary level! Thank You!

Great video

very clear and lucid explanations.

Awesome explanation, well done!

What are the benefits of doing an Interest Rate Swap on an exchange compared with doing one over the counter?

It's extremely helpful.
Specially when you have a treasury Management exam tomorrowand you've studied absolutely nothing.

indeed impeccable, thank you very much!

impeccable video

This animation was done so professionally and clearly!

Thanks so much for this!!

If the variable rates cancel out, what happens to the premium you pay the lender on the variable rate (2%)? Does that mean that you pay a net 5% fixed interest rate because you still pay the lender the 2% premium, and the bank the 3% fixed rate?

Cleared my confusion...Thanks a lot!!!