This is the most simple explanation of how to hedge that you will ever see!

Hedging can seem complicated, but it does not have to be. In this video, I break it down to its absolute basics, making it easy for anyone to understand—even if you are just starting out.

Here is what I cover:
1. The Repricing Gap: What it is and why it is important for managing risk.
2. Time Value of Money: A fundamental concept that affects all financial decisions.
3. Behavioural vs Contractual Gap: Understanding how customer behaviour influences risk.
4. Behavioural Assumptions: Why they matter in forecasting and strategy.
5. Using Swaps to Hedge: A straightforward way to manage interest rate risk.

This explanation is designed to give you a clear, realistic, and practical understanding of hedging concepts. No jargon, no overcomplication—just the essentials delivered in the simplest way possible.