Money Lessons with Andrew Temte, PhD, CFA

Why Some Bonds Pay More: Understanding the Risk-Return Tradeoff

In this episode of Money Lessons, Andy explores the landscape of bond types, focusing on the reasons behind varying yields. He discusses Treasury bonds as the safest investment, corporate bonds and their associated risks, and municipal bonds with tax advantages. The conversation emphasizes the relationship between risk and return in bond investing, providing insights into how investors can make informed decisions based on their risk tolerance and investment goals.
#financialliteracy #personalfinance #riskreturn #bondtypes #bondmarkets #interestrates #financialeducation

Understanding Bond Yields: Measuring Your Return

In this episode of Money Lessons, Andy discusses the concept of yield on bonds, explaining their significance in evaluating investment returns. He breaks down various yield measures, including nominal yield, current yield, and yield to maturity, highlighting their differences and importance in bond investment. The episode also covers callable bonds and the hierarchy of yield measures, providing listeners with a comprehensive understanding of how to compare bonds effectively.
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Greenland Could Cost Us More Than We Think

In this SPECIAL EPISODE of Money Lessons, Andy discusses the implications of the U.S. government's interest in acquiring Greenland, arguing that such a move could exacerbate global tensions, undermine the country's financial stability, and have direct negative consequences for the average citizen.
He emphasizes the importance of maintaining strong global alliances, particularly in light of the U.S.'s significant national debt, which stands at over $38 trillion. Temte warns that escalating tensions could lead to foreign governments selling U.S. Treasury bonds, destabilizing financial markets and increasing borrowing costs for both the government and consumers.
AndrewTemte.com

Bond Mechanics: How Bonds Actually Work

In this episode of Money Lessons, Andy discusses the world of bonds, explaining their mechanics, pricing, and the INVERSE relationship between interest rates and bond prices. 
He emphasizes the importance of understanding these concepts for making informed investment decisions and introduces the topic of yield, which will be explored in the next episode.

The Modern Bond Market Takes Shape

In this episode of Money Lessons, Andy explores the evolution of bond markets from the aftermath of World War II to the present day. He discusses the regulatory reforms that laid the groundwork for modern bond investing, the rise of institutional investors, the transformation brought by electronic trading, and the impact of globalization. Andy highlights how these changes have democratized bond investing, making it accessible to ordinary investors and creating a diverse and liquid market.
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A Slow Motion Collapse and Bond Market Regulations

In this episode of Money Lessons, Andy explores the historical context and implications of the bond market collapse during the Great Depression, the subsequent regulatory reforms, and their lasting impact on today's financial landscape.
He discusses the failures of the credit rating system, the introduction of the Trust Indenture Act of 1939, and the significance of the Glass-Steagall Act in protecting investors. The episode concludes with a reflection on the ongoing debate surrounding regulation in financial markets.
#financialliteracy #moneylessons 

Corporate Bonds - The Promises Corporations Must Keep

In this episode of Money Lessons, Andy explores the evolution of corporate bond markets, highlighting their historical significance, the role of credit ratings, and the legal protections that make corporate lending viable. He emphasizes the importance of understanding corporate bonds as a stable investment option compared to stocks, and discusses the current state of the bond market.
 
#financialliteracy #bondmarkets #corporatebonds #financialhistory #personalfinance

The Implications of Government Debt Default

In this episode of Money Lessons, Andy explores the complexities of sovereign debt, focusing on historical examples of nations that have defaulted on their obligations. He discusses the immediate relief that defaults may provide, but emphasizes the long-term consequences, including loss of credibility, economic isolation, and political instability. 
 
The episode highlights the importance of understanding the implications of broken promises in government borrowing and sets the stage for future discussions on corporate debt.

Sovereign Debt: Financing Empires

In this episode of Money Lessons, Andy explores the evolution of sovereign debt from its early origins in ancient Mesopotamia to its transformation into a systematic foundation for modern nation-states. 
He discusses the role of the Fugger family in early sovereign lending, the impact of the Glorious Revolution on government borrowing, and the establishment of the Bank of England, which revolutionized the way governments manage debt. Temte emphasizes the importance of institutional credibility in sovereign lending and warns of the risks of complacency in borrowing practices.

Ancient IOUs: The Origin of Debt Instruments