Zitat des Tages über Derivate / Derivatives:
We have institutions that have been allowed to become too big to fail because we had all kinds of flaws in our financial infrastructure, in the whole way over-the-counter derivatives work.
An unregulated derivatives market essentially gives Wall Street a way to place hidden taxes on everything in the world.
Over and over again, financial experts and wonkish talking heads endeavor to explain these mysterious, 'toxic' financial instruments to us lay folk. Over and over, they ignobly fail, because we all know that no one understands credit default obligations and derivatives, except perhaps Mr. Buffett and the computers who created them.
We started giving presentations at practitioner conferences in 1986, and since then all of our derivatives research has been stimulated by contact with practitioners.
Money never seems to be interested in strengthening regulatory agencies, for example, but always in subverting them, in making them miss the danger signs in coal mines and in derivatives trading and in deep-sea oil wells.
Derivatives are a huge, complex issue.
The subprime disaster was a result of financial bombs - derivatives - exploding in financial institutions such as AIG and Lehman Brothers, as well as banks and financial institutions throughout the world.
AIG's failure revealed systemic problems in the OTC derivatives market that went well beyond the failure of a single market participant.
I guess there was a little bit of a slight rebellion, maybe a little bit of a renegade desire that made me realize at some point in my adolescence that I really liked pictures that told stories of things - genre paintings, historical paintings - the sort of derivatives we get in contemporary society.
I didn't become interested in derivatives until 1982, 1983.
Modern women are just bombarded. There's nothing but media telling us we're all supposed to be great cooks, have great style, be great in bed, be the best mothers, speak seven languages, and be able to understand derivatives. And we don't really have women we're modeling after, so we're all looking for how to do this.
Derivatives are financial weapons of mass destruction.
I was named Margaret Yvonne. 'Margaret' because my mother was very fond of one of the derivatives of the name. She was fascinated at the time by the movie star Baby Peggy, and I suppose she wanted a Baby Peggy of her own.
People far too often associate derivatives markets with mere speculation, but there are very legitimate businesses that need derivatives to protect themselves against risk.
After I finished college, I got a job on Wall Street as a derivatives trader, but after a couple years of it, I was calling in sick in order to work on my novel.
I think the most important thing to understand about credit derivatives and their use at JPMorgan is they served a number of different purposes. First and foremost, they were a tool which initially was seen as being useful in managing the bank's own risk management challenges.
They've been fairly positive, as firm as they could be in regards to the derivatives operations in Montreal. We didn't sense that there was a hesitation about it. But things change.
I am telling you, the world's first trillionaires are going to come from somebody who masters A.I. and all its derivatives and applies it in ways we never thought of.
A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'
In bypassing barriers between different classes, maturities, rating categories, debt seniority levels and so on, credit derivatives are creating enormous opportunities to exploit and profit from associated discontinuities in the pricing of credit risk.
Derivatives in and of themselves are not evil. There's nothing evil about how they're traded, how they're accounted for, and how they're financed, like any other financial instrument, if done properly.
I turn aside with a shudder of horror from this lamentable plague of functions which have no derivatives.
What I think about derivatives is if every institution that owns or trades them is properly margined and marked to market, including end-users, including every institution, including sovereigns and multilateral institutions, then the system would be safe - if people were margined the way customers of investment banks are margined.
