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Derivatives
Credit default swaps? They're complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: They're both derivatives. Senior Editor Paddy Hirsch explains.
PIIGS
Five little PIIGS. Senior Editor Paddy Hirsch explains why problems with certain European countries' sovereign debt could blow the house down.
How the big banks make the big bucks
We keep hearing the banks aren't lending. The truth is they are lending, and making a lot of money doing it, thanks in large part to one very special borrower. Senior Editor Paddy Hirsch reports.
Ratings conflict
Ratings agencies are paid by the sellers of the securities they rate. Critics say there's a conflict of interest there.Senior Editor Paddy Hirsch explains.
Look out below!
Commercial real estate is giving Ben Bernanke a big headache. Senior Editor Paddy Hirsch explains why it's such a threat to the economy.
Interest rates
Confused about the theory of how interest rates can affect economic growth? Senior Editor Paddy Hirsch is here with a handy analogy.
Hostile takeovers
We all know what a takeover is. That's when one company agrees to be bought by another. But what happens when companies don't agree and the takeover goes hostile? Senior Editor Paddy Hirsch explains.
Derivatives
Credit default swaps? They're complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: They're both derivatives. Senior Editor Paddy Hirsch explains.
Bonds, notes and bills
So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Senior Editor Paddy Hirsch explains.
Inflation
Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains
High-frequency trading
High-frequency trading is creating a ruckus on Wall Street. Marketplace Senior Editor Paddy Hirsch explains what high-frequency trading is and why some people are up in arms about it.
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Comments
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01/29/2010
paddy, i enjoy your videos
From Richmond, VA, 01/15/2010
Great presentation, unfortunately not very accurate.
Farmer does not have to pay money right away, just agree on the price of delivery (this leads to leverage and counter-party risk on both sides).
Hedge usually means taking opposite position (Farmer expect to cook (deliver) 20 turkeys for his family (short position) he agree to buy turkeys in the future (long position). When Farmer buys an option he is hedging one more time.
It's hard to condense so much information in a such a short period of time. Narrowing it down to a single point should help with accuracy.
From San Jose, CA, 12/29/2009
The ability to explain complex concepts in such a simple, mundane way, is an example of a high-level intelligence. I'm so glad I heard a reference to this site on NPR today. We may have knowledge about these concepts, but we are learning how to explain them in a more effective and clear way. Thank you!
From Sarasota, FL, 12/29/2009
Outstanding explanation.
From Rockford, IL, 11/23/2009
Wow, Paddy Hirsch, your presentations are so useful and informative. Thank you so much for these presentations.I can't imagine how much research I would have to do to acquire the knowledge base that you provide so effectively. A thousand thanks! :-) Oh, and now I'm a bit more capable of intelligently reading The Economist.
From san jose, CA, 11/06/2009
Carry trade in currency is a big phenomenon I am hearing from experts where the money is going with the falling dollar. Could you pls explain the carry trade in currency
From Philadelphia, PA, 10/24/2009
Paddy,
Can you please explain the need for both the Treasuruy AND the Federal Reserve
From Princeton, NJ, 10/22/2009
Paddy should talk more about structured finance and CDO's.
From Saint Louis, MO, 10/21/2009
@Josh..."The S&P500 is not an exchange for trading derivatives!? It's an index of large-cap stocks."
I'm sure Paddy just had a slip up. Everyone is human, friend.
@Nancy...
The best way by far to download these and other podcasts would be to download iTunes, then download whichever podcast from the iTunes store. All the APM podcasts are free by the way.
From bloomfield, MI, 10/20/2009
Paddy
Very well thought out and lucid presentation on derivatives.
However, I believe you missed the point on CDF’s.
You described the futures market quite well.
It is my understanding that CDF’s are insurance on someone (like GM or Ireland) defaulting on their bonds.
Unfortunately one doesn’t have to own the underlying security to get a CDF on it. It is like me buying insurance on your house.
Pretty scarry.
Regards,
Don
From Cambridge, MA, 10/16/2009
The S&P500 is not an exchange for trading derivatives!? It's an index of large-cap stocks.
From Cornwall, NY, 10/16/2009
Dear Paddy,
Your video on derivatives is fantastic..a wonderful learning tool!Is there a way I can save it to watch,(only for my own personal use)at my leisure? Thank you! Best wishes, Nancy R. Lewit
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