Tnx for simplifying the $20Bn blowup in under 5minutes. Good job!
@KINGCADEMY
3 жыл бұрын
Glad you found it helpful Pradeep!
@worldlivingrealitieswithlc2054
2 жыл бұрын
Agreed, thanks so much
@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
@lucaa.9663
2 жыл бұрын
Great video! Simple breakdown of what a trs is!
@KINGCADEMY
2 жыл бұрын
Many thanks Luca!
@anemoneyas
3 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
@rubadubmedia
2 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-Ramses
2 жыл бұрын
@@rubadubmedia the investment banks didn't have to do it. This is on them. They shouldn't exist.
@maciejkaczor4574
3 жыл бұрын
GME - best company in the world.
@Bprice1000123
2 ай бұрын
Can’t stop won’t stop.
@claro1217
3 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.
@KINGCADEMY
3 жыл бұрын
Thank you Claro, glad it helped!
@techgod3670
3 жыл бұрын
Ur channel needs to blow up seriously, nobody can explain like u , tnx !!!!
@samvid1992
3 жыл бұрын
awesome explanation. please continue making such videos.
@KINGCADEMY
3 жыл бұрын
You are very welccome DotaLove. Many more to come!
@youtubasoarus
3 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.
@greatndit
2 жыл бұрын
i think it's not 100% bill hwang fault . those investment banks are also causing their own loss .
@Bprice1000123
2 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.
@davidcaruso3045
3 жыл бұрын
Great video. Very easy to understand. Thanks.
@KINGCADEMY
3 жыл бұрын
Cheers David!
@Jordan-Ramses
2 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.
@K4R3N
2 жыл бұрын
TRS I remember these when I was at BofA, what a shitty product. Should be banned.
@NitishYadav-nc7tw
3 жыл бұрын
The best after so much surfing
@KINGCADEMY
3 жыл бұрын
Glad you liked it Nitish!
@atillathehun6825
3 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.
@KINGCADEMY
3 жыл бұрын
You know what... there is definitely something to be said for that.
@Bprice1000123
2 ай бұрын
Be difficult to spend the money while in prison. Never a good idea to lose rich ppls money, especially if their Swiss.
@nellytesis4275
3 жыл бұрын
Great video! Thanks !!! Waiting for new videos rn
@KINGCADEMY
3 жыл бұрын
Thank you Nelly! More to come.
@CosmicSeeker69
3 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?
@KINGCADEMY
3 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.
@Rey_B
2 жыл бұрын
very well explained, can i have this video in English pls😂
@densfloar
3 жыл бұрын
Indeed. Amazing explanation. Subscribed!
@ScottsStockDueDiligence
2 жыл бұрын
wow!
@thomasucc
4 ай бұрын
This is a perfect case for taxpayers to bailout
@techgod3670
3 жыл бұрын
Plz make a video about liquidation preference and reverse vesting in startups
@s0ngsterr
3 жыл бұрын
Supperr underrated... Thankkss mate!
@KINGCADEMY
3 жыл бұрын
Too kind! Thanks Ankit.
@viksra
2 жыл бұрын
What program are you using to draw on?
@KINGCADEMY
2 жыл бұрын
Hi Viksra, I use Photoshop for the drawings, then Quicktime and Adobe After Effects for the recording and editing.
@viksra
2 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.
@KINGCADEMY
2 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.
@zzznap970
3 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.
@KINGCADEMY
3 жыл бұрын
Kath, thanks! Glad you enjoy the videos. That is a good question and I think you are probably right!
@HiFiAwardTour
2 жыл бұрын
So TRS’s are just leverage?
@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!
@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"
@icraftcrafts8685
3 жыл бұрын
so 2001 was 2000 and hwang
@aryasamaya
3 жыл бұрын
Great video, perfect explanation in less than 5 mins.
@KINGCADEMY
2 жыл бұрын
Glad it was helpful Claudius!
@78236931
2 жыл бұрын
That explanation was brilliant, you’ve got my subscription
@RonnieTerryJr
2 жыл бұрын
Super informative video - thank you for simplifying this!
@mkmishra.1997
2 жыл бұрын
best explanation of this incident
@KINGCADEMY
2 жыл бұрын
Thank you Manish!
@aeron5158
3 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.
@KINGCADEMY
3 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.
@boniprakarsa5090
3 жыл бұрын
Very well explained thx for sharing !
@KINGCADEMY
3 жыл бұрын
Thank you Boni!
@boniprakarsa5090
3 жыл бұрын
Your welcome keep up the good work mate ..
@moeeslamipour5464
3 жыл бұрын
There is no way to exactly who made and lost money?
@ravindertalwar553
2 жыл бұрын
Feeling Blessed and Expressing Gratitude my God 🙏 I love you so much
@KINGCADEMY
2 жыл бұрын
Thank you Ravinder!
@markr002
2 жыл бұрын
Really helpful summary. Thank you. 🙏
@mohamadhannawi202
2 жыл бұрын
finally a proper video
@KINGCADEMY
2 жыл бұрын
Thank you Mohamad!
@aleksiraivio193
3 жыл бұрын
so poor bill didn´t even make any money
@exiledazazel1844
2 жыл бұрын
Dang, very well explained and put together! That guy is a genius 👏!
@KINGCADEMY
2 жыл бұрын
Thank you! Glad you liked it.
@edwarddavis6827
3 жыл бұрын
Very good review
@KINGCADEMY
3 жыл бұрын
Thank you Edward! Glad you liked it.
@chrisbarney1609
2 жыл бұрын
fascinating! well made
@saurabhj1977
2 жыл бұрын
I used this explaination in one of the interviews. Thanks a lot.
@KINGCADEMY
2 жыл бұрын
Really glad it helped Saurabh. My pleasure.
@readdoplaychill
2 жыл бұрын
Thank you, pretty clear and succinct!
@KINGCADEMY
Жыл бұрын
No problem. Glad you liked it.
@piyulkothari
3 жыл бұрын
What would be the probable interest rate??
@KINGCADEMY
3 жыл бұрын
in terms of?
@piyulkothari
3 жыл бұрын
@@KINGCADEMY annually which banks charge or the fees
@gavharoy9125
2 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!
@KINGCADEMY
2 жыл бұрын
Thanks Gavharoy! Really glad it helped and you found it useful.
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