Patrick Boyle

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This summer, a bizarre new trend hit Wall Street: Chinese meme stocks. Promoted in WhatsApp groups, Reddit threads, and even under fake YouTube comments, these obscure Chinese companies soared — and then collapsed — wiping out billions in investor savings. In this video, we explore how Regencell Biosciences briefly reached a $38 billion valuation selling what looks suspiciously like curry ingredients as medicine, we try to understand why the FBI is calling it “ramp and dump” fraud, and how scammers are impersonating brokers, analysts, and even YouTubers to lure in victims.

We’ll compare these knockoff meme stocks to America’s domestically produced meme stock madness — GameStop, AMC, and the DORK stocks — and ask: is this just low-quality IP theft, or a new frontier in financial absurdity?

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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There is a long history of regulation and deregulation where big scandals provide the catalyst for new rules, and then the realization that the rules are possibly excessive has caused them to be rolled back.

In finance the 1933 Glass-Steagall provisions came in the wake of the 1929 Crash. The 2002 Sarbanes-Oxley Act was a reaction to the Enron and WorldCom scandals. Dodd-Frank was enacted in 2010 after the 2008 financial crisis.

Good regulation can bring all sorts of benefits, but excessive regulation, does little to serve the public interest, and creates financial costs and frustration for businesses and the public.

Elon Musk has vowed to dismantle thousands of federal regulations as the co-head of the Department of Government Efficiency, or DOGE, saying the nation’s financial security depends on it. Is he right, and if so, what rules need to go first?

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

Additional Reading:
https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
An Evaluation of Consumer Protection Legislation: The 1962 Drug Amendments | Journal of Political Economy: Vol 81, No 5
https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear#conclusions https://www.cato.org/policy-analysis/rust-buckets-how-jones-act-undermines-us-shipbuilding-national-security
https://worksinprogress.co/issue/how-madrid-built-its-metro-cheaply/
Milton Friedman Video: https://www.youtube.com/watch?v=dZL25NSLhEA
A history of regulation and deregulation: https://regulatorystudies.columbian.gwu.edu/brief-history-regulation-and-deregulation
Weird Laws Around the World: https://www.farandwide.com/s/weird-laws-world-4961c1ede8d749bf


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These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

Derivatives are specific types of instruments that derive their value over time from the performance of an underlying asset: eg equities, bonds, commodities.
A derivative is traded between two parties – who are referred to as the counterparties. These counterparties are subject to a pre-agreed set of terms and conditions that determine their rights and obligations.

The most common types of derivatives are options, futures, forwards, swaps and swaptions. I have created videos already explaining all of these financial products.

Market risk refers to the sensitivity of an asset or portfolio to overall market price movements such as interest rates, inflation, equities, currency and property.

In addition to market risk, derivatives carry counterparty credit risk. Counterparty risk arises when one of the parties defaults, resulting in a replacement risk for the non-defaulting party. As the use of derivatives has grown, systems and methodologies to monitor and mitigate counterparty risk have become more sophisticated. Regulators have also been enhancing the accounting standards (eg IFRS 13) and capital frameworks to capture counterparty risk.

Whilst VaR remains an important metric for measuring market risk exposure, there are limitations with this measure. Regulators are increasingly recommending a broader range of risk metrics to evaluate risk exposure. Ultimately, each investor needs to adopt the best combination of risk metrics for their unique asset/liability, funding and risk profile.

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In todays video we learn about how Swap participants benefit from the law of comparative advantage.

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

Swaps and Comparative Advantage

In economics, the law of absolute advantage stated that countries should specialize in what they are best or most efficient at producing, and then exchange these goods with other countries, making both countries better off.

David Ricardo’s vital contribution to economic thought was the law of comparative advantage, an economic theory stating that even if one country is more efficient in the production of all goods (absolute advantage in all goods) than the other, both countries will still gain by trading with each other, as long as they have different relative efficiencies. This law helps explain why countries engage in international trade even when one country’s workers are more efficient at producing every single good than workers in other countries.

It is easy to understand how if one company is able to get a better deal in fixed-rate borrowing, but prefers to borrow at a floating rate, while another company is in the equal and opposite situation, it might make sense for these two companies to enter into a swap. In the situation where one firm has better access to the capital markets than all others, it might still make sense for them to enter the swaps market.

#comparative advantage swaps calculation

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In today's video we learn all about the Monte Carlo Method in Finance.

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance

What is the Monte Carlo Method?

Monte Carlo methods, or Monte Carlo experiments, are a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results. The underlying concept is to use randomness to solve problems that might be deterministic in principle. They are often used in physical and mathematical problems and are most useful when it is difficult or impossible to use other approaches. Monte Carlo methods are mainly used in three problem classes: optimization, numerical integration, and generating draws from a probability distribution.

In physics-related problems, Monte Carlo methods are useful for simulating systems with many coupled degrees of freedom, such as fluids, disordered materials, strongly coupled solids, and cellular structures. Other examples include modeling phenomena with significant uncertainty in inputs such as the calculation of risk in business and, in maths, evaluation of multidimensional definite integrals with complicated boundary conditions. In application to systems engineering problems (space, oil exploration, aircraft design, etc.), Monte Carlo–based predictions of failure, cost overruns and schedule overruns are routinely better than human intuition or alternative "soft" methods.

Monte Carlo methods are used in corporate finance and mathematical finance to value and analyze complex financial instruments, portfolios and investments by simulating the various sources of uncertainty affecting their value, and then determining the distribution of their value over the range of resultant outcomes. This is usually done by help of stochastic asset models. The advantage of Monte Carlo methods over other techniques increases as the dimensions (sources of uncertainty) of the problem increase.

In 1977, Phelim Boyle pioneered the use of the Monte Carlo Method in derivative valuation in a Journal of Financial Economics paper.

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Should companies use derivatives to hedge? How and why do companies hedge?

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

Should Companies Use Derivatives to Hedge?

Over the last several decades, the use of derivatives as a tool to mitigate and control risk has expanded significantly. Despite well-publicized abuses involving derivatives, the efficacy of derivatives as a means of managing economic and other forms of risk remains widely accepted. The evolving mix of users of derivatives in the last ten years has also impacted the derivatives landscape. Traditionally, commercial hedgers such as processors, mills and large corporations used derivatives to manage risks; today, while commercial hedgers remain active, much of the increase in volume in derivatives is attributable to non-traditional end-users, such as public companies, which have been active users of derivatives, most notably interest rate and foreign currency hedging instruments.

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In todays video we learn what are asset backed securities, what are credit card receivables and what is a Special Purpose Vehicle (SPV)?

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

What is an Asset-Backed Security (ABS)?
An asset-backed security (ABS) is a financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. For investors, asset-backed securities are an alternative to investing in corporate debt. An ABS is similar to a mortgage-backed security, except that the underlying securities are not mortgage-based.

Credit card asset-backed securities (ABSs) are fixed-income bonds based on the cash flow stream from pooled credit card accounts. First issued in 1987, credit card ABSs are mostly high quality, pay good yields, and are liquid, with transparent prices. The number of credit card ABSs increase as the use of credit increases. However, like most asset-backed securities and unlike most corporate or government bonds, credit card ABSs have only an average maturity rather than a specified maturity because the underlying cash flow is highly variable. Credit card ABSs are structured so as to mimic the cash flow of a typical bond, but the timing of the cash flow is usually not guaranteed.

The process of securitizing credit card receivables is very similar to that of securitizing mortgages and other loan obligations. A card issuer sells a group of accounts to a trust, which issues securities backed by those receivables. The card issuer still services the account, but the assets are removed from its balance sheet. This allows the card issuer to issue more accounts and to reduce its capital reserve requirements, the amount of money banks are required by law to hold to do business. This money doesn't earn interest, so, naturally, the card issuer wants to reduce its required reserves as much as possible. As the cardholders pay on their accounts monthly, most of the money is sent to the trust, which pays the holders of the credit card ABSs interest and principal. The card issuer retains a servicing fee and part of the finance charge as profit, and also includes part of the principal—the seller's interest.

Securitization allows more rapid growth of banks specializing in credit card issuances by providing a source of funding and transferring risk. Before the securitization of credit card receivables, card issuers borrowed money from a bank or relied on bank deposits to fund credit card loans. Securitization greatly expanded funding for credit card issuers, including monoline issuers, and issuers whose main business is not banking or issuing credit cards, such as Amazon.com.

A special-purpose vehicle, or special-purpose entity (SPE; or SPV, or, in some cases in each EU jurisdiction – FVC, financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPEs are typically used by companies to isolate the firm from financial risk. A formal definition is "The Special Purpose Entity is a fenced organization having limited predefined purposes and a legal personality"

Trading and pricing financial derivatives.

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The recent Greenland crisis at Davos 2026 has shattered transatlantic trust, forcing Europe to confront a terrifying new reality: the need for strategic autonomy from the United States. Faced with what it views as transactional coercion, Brussels is readying an arsenal of economic countermeasures, ranging from a "trade bazooka" targeting U.S. tech firms to the highly publicized "financial nuclear option"—the threat of dumping trillions in U.S. Treasuries. But before we panic about a bond market collapse, we need to examine the hard financial realities: Is weaponizing sovereign debt a viable strategy, or is it merely a macroeconomic suicide pact? This video dives into the mechanics of this potential economic war and the high cost of moving from an era of global efficiency to one of fearful autarky

Michael Pettis Paper: https://carnegieendowment.org/china-financial-markets/2025/07/foreign-capital-inflows-dont-lower-us-interest-rates
Martin Wolf Article: https://www.ft.com/content/e2c8c6c3-0cdc-4aa8-a47d-399407c75ad9
Richard Samans Paper: https://www.brookings.edu/articles/rebalancing-the-world-economy-right-idea-but-wrong-approach/

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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Get 50% off your first order of CookUnity meals — go to https://cookunity.com/pboyle50 and use my code PBOYLE50 at checkout to try them out for yourself! Thanks to CookUnity for sponsoring this video!

The FBI created their own crypto token called NexFundAI as part of an investigation into price manipulation in crypto markets. As a result of the investigation, the SEC charged three “so-called market makers” and nine individuals for allegedly engaging in schemes to boost the prices of certain crypto assets. The Department of Justice charged 18 people and entities for “widespread fraud and manipulation” in crypto markets.

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

Additional Links:
SEC Press Release: https://www.sec.gov/newsroom/press-releases/2024-166
U.S. Attorney's Office, District of Massachusetts: https://www.justice.gov/usao-ma/pr/eighteen-individuals-and-entities-charged-international-operation-targeting-widespread
Link To Report Losses: https://forms.fbi.gov/seeking-information-in-cryptocurrency-investment-fraud-investigation

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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Get an exclusive 15% discount on Saily data plans! Use code BOYLE at checkout. Download Saily app or go to https://saily.com/boyle

Yesterday SpaceX became the largest company ever to go public, in an IPO that values Elon Musk's rocket-and-AI conglomerate at $1.78 trillion. But SpaceX is just the first. Anthropic and OpenAI have both filed to go public, Alphabet has just raised a record $85 billion in new stock, and Meta is reportedly considering doing the same. Goldman Sachs expects as much as $675 billion of new equity to hit the market this year.

For two decades the stock market did nothing but shrink — companies stayed private, bought back their own shares, and got taken private by private equity, leaving less and less stock to go around. That era is now over. In this video I look at why all of this is happening at once, what the AI buildout has to do with it, why the SpaceX deal has been such an awkward experience for Wall Street, what the prospectus actually reveals about where the $75 billion is going, and whether any of it is a good investment — with a look back at what happened to people who bought Cisco at the top in 2000.

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

Join this channel to support making this content:
https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join

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