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	Credit default swap (CDS) Posted by: bionicturtledotcom Video duration: 357 seconds A CDS is a bilateral contract between two counterparties. The protection buyer is buying insurance: he/she pays premiums in exchange for a payoff in case there is a CREDIT EVENT (a trigger) Related: excel, finance, quant

	Intro to logarithms Posted by: bionicturtledotcom Video duration: 594 seconds The inverse of a logarithmic function is an exponential functions. And if we use a base of natural e, we can compute continuously compounded returns Related: finance, quant

	Intro to Quant Finance: Value at Risk (VaR) Posted by: bionicturtledotcom Video duration: 588 seconds The basic approach to VaR is delta normal: a scaled standard deviation Related: excel, finance, quant, quantitative

	Normal probability distribution Posted by: bionicturtledotcom Video duration: 560 seconds Review of the normal density function and its key properties Related: excel, finance, quant

	Regression #1: Sample regression function (SRF) Posted by: bionicturtledotcom Video duration: 450 seconds The population is unobserved. We draw samples and make inferences based on the samples. Each sample has a sample regression function (SRF). Related: econometrics, finance, quant, regression, statistics

	Binomial distribution Posted by: bionicturtledotcom Video duration: 597 seconds The binomial is one of the basic distributions, yet surprisingly common in risk and quant finance. Here I take a look at its key properties and compare the formula to Excel's built in =BINOMDIST() Related: excel, finance, quant

Regression #2: Ordinary Least Squares (OLS) Posted by: bionicturtledotcom Video duration: 568 seconds OLS minimizes the residual sum of squares (RSS). RSS is the sum of each squared residual (residual = the observed Y minus the predicted "on the line" Y). Also, about the OLS: the average residual is always zero, and the line passes through the point (average X, average Y) Related: econometrics, finance, quant, regression, statistics

Bayes' Formula Posted by: bionicturtledotcom Video duration: 397 seconds Bayes' Theorem formulas an intuitive idea: we adjust our perspective (the probability set) given new, relevant information. Formally, Bayes' Theorem helps us move from an unconditional probability (what are the odds the economy will grow?) to a conditional probability (given new evidence, what are the odds the economy will grow?) Related: finance, quant

	Collateralized debt obligation (Balance Sheet CDO) Posted by: bionicturtledotcom Video duration: 456 seconds A balance sheet CDO transfers credit risk from the bank (originator) to investors. A key aspect of a CDO is that investors have different (tranched) securities. Related: excel, finance, quant

Student's t distribution Posted by: bionicturtledotcom Video duration: 512 seconds The small sample is a 10-day series of Google's daily periodic returns. The question is, with 95% confidence, what is the true (population) average return? This is the essence of statistics, based on sample statistics (sample mean, sample variance) we are trying to infer population parameters (population mean). Related: excel, finance, quant

	Central limit theorem Posted by: bionicturtledotcom Video duration: 529 seconds The CLT says the sample mean will be normally distributed regardless of the population distribution; it's power is uncanny. Related: financel, quant

	Confidence interval Posted by: bionicturtledotcom Video duration: 496 seconds I illustrate the confidence interval construction with an example: the P/E ratio of 28 companies. The point is to say with confidence (e.g., 95%) that the "true" population lies within an interval. Related: excel, finance, probability, quant, statistics

	Intro to Quant Finance: Volatility Posted by: bionicturtledotcom Video duration: 644 seconds Volatility is the standard deviation of period returns Related: excel, finance, quant, quantitative

Combinations and permutation Posted by: bionicturtledotcom Video duration: 428 seconds Both count the ways that (r) objects can be taken from a group of (n) objects, but permutations are arrangements (sequence matters), while combinations are selections (order does not matter). For example, how many ways can you seat people at a table? That's permutation. How many poker hands are available in five-card draw? That's a combination Related: excel, finance, quant

	Regression #4: ANOVA table in regression Posted by: bionicturtledotcom Video duration: 554 seconds The ANOVA table explains the sources of variation. Related: excel, finance, quant, regression, statistics