Credit Default Swap Quotes

• Credit-default swaps, I think, have serious problems associated with them.

  Alan Greenspan

  Thinking, Credit, Serious

  "Quote of the Day – 10.23.08" by Kevin Drum, www.motherjones.com. October 24, 2008.

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• If you pay attention to where your exposures are, you might tend up buying credit default swaps against a variety of people that you - companies that you deal with.

  Robert F. Engle

  People, Buying, Attention

  Source: bigthink.com

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• Countries are not like financial markets. Social change cannot be executed as swiftly as credit-default swaps. You cannot sell short on social commitments and practical responsibilities.

  George Papandreou

  Country, Commitment, Responsibility

  "Why We Must Unite Against The Unprincipled Speculators". www.businessinsider.com. March 8, 2010.

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• I do believe CDSs [credit default swaps] have been miscast, much as poor workmen tend to blame their tools.

  Blythe Masters

  Believe, Tools, Credit

  "The woman who built financial 'weapon of mass destruction'" by David Teather, www.theguardian.com. September 19, 2008.

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• A credit default swap was confusing mainly because it wasn't really a swap at all. It was an insurance policy, typically on a corporate bond, with semiannual premium payments and a fixed term.

  Michael Lewis

  Confusing, Credit, Default

  Michael Lewis (2015). “The Big Short: Inside the Doomsday Machine (movie tie-in)”, p.46, W. W. Norton & Company

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• So what is the role that credit default swaps can play in an economy? Well my feeling is that if these things actually will now be traded on either exchanges or some kind of central clearing, they are going to be a very good measure of the credit worthiness of different companies.

  Robert F. Engle

  Play, Feelings, Different

  Source: bigthink.com

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• Credit default swap gives you something to do. You can buy some credit default swaps from them to protect yourself against the bankruptcy of people who owe you money.

  Robert F. Engle

  People, Giving, Credit

  Source: bigthink.com

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• I mean, we've always had gold bugs, but now we sort of realize that Treasure Bills might be in the same category. And we have derivatives like credit default swaps which are in this category, and we have derivatives like volatilities that are actually an asset class that we can invest in which are now - would out perform if we have another financial crisis.

  Robert F. Engle

  Mean, Class, Gold

  Source: bigthink.com

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• I think the credit default swaps can take the place of the rating agencies who really have missed the ball in this procedure and are quite conflicted by the way the ratings are paid for. So, I would like to see credit default swaps become an evermore important way of understanding credit risk in the economy.

  Robert F. Engle

  Thinking, Agency, Risk

  Source: bigthink.com

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• The money has to be deferred with what they call "clawback," which means they can get it back if I lose it all. So that guy making ten million a year selling credit default swaps, if we're going to keep five million of it in escrow for ten years, and with the right to go back and get it, if he starts losing money, then we're going to give people the right incentives not too take so much risk.

  Richard Thaler

  Mean, Years, People

  Source: bigthink.com

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• As the financial experts all over the world use machines to unwind Gordian knots of financial arrangements so complex that only machines can make - 'derive' - and trade them, we have to wonder: Are we living in a bad sci-fi movie? Is the Matrix made of credit default swaps?

  Richard Dooling

  Experts, Machines, Use

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• The people who did the collateralized mortgage obligations, sold them to pension funds, then sold them short, then bought credit default swap insurance on them, are just amazing. They are a law unto themselves.

  Ben Stein

  Law, People, Credit

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