Swaps Quotes & Sayings

I find it incredibly amazing how at every sunset, the sky is a different shade. No cloud is ever in the same place. Each day is a new masterpiece. A new wonder. A new memory. — Sanober Khan

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

Children are knives, my mother once said. They don't mean to, but they cut. And yet we cling to them, don't we, we clasp them until the blood flows. — Joanne Harris

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

There was more than one way to think about Mike Burry's purchase of a billion dollars in credit default swaps. The first was as a simple, even innocent, insurance contract. Burry made his semiannual premium payments and, in return, received protection against the default of a billion dollars' worth of bonds. He'd either be paid zero, if the triple-B-rated bonds he'd insured proved good, or a billion dollars, if those triple-B-rated bonds went bad. But of course Mike Burry didn't own any triple-B-rated subprime mortgage bonds, or anything like them. He had no property to "insure" it was as if he had bought fire insurance on some slum with a history of burning down. To him, as to Steve Eisman, a credit default swap wasn't insurance at all but an outright speculative bet against the market - and this was the second way to think about it. — Michael Lewis

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

There is a difference between giving into something and accepting it. — Elise Broach

Main Street investors, who cannot trade credit default swaps, should not be tempted to trade an instrument with the same risk profile simply because it has been given a different name. — Daniel L. Doctoroff

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

The borders of Israel and Palestine should be based on the 1967 lines with mutually agreed swaps, so that secure and recognized borders are established for both states. The Palestinian people must have the right to govern themselves and reach their potential, in a sovereign and contiguous state. — Barack Obama

The borders of Israel and an independent Palestine should be based on the 1967 lines with mutually agreed swaps. Each state needs secure and recognized borders, and there must be robust provisions that safeguard Israel's security. — Denis McDonough

Everyone ate as a group, and a huge cauldron of dumpster-dived gruel bubbled over a campfire, tended by a grubby-handed group of chefs dicing potatoes and onions on a piece of cardboard on the ground. Huck [Finn] may have been right that a 'barrel of odds and ends' where the 'juice kind of swaps around' makes for better victuals, but it occurred to me that the revolution may well get dysentery. — Matthew Power

Like most humans, I am hungry ... our three basic needs, for food and security and love, are so mixed and mingled and entwined that we cannot straightly think of one without the others. So it happens that when I write of hunger, I am really writing about love and the hunger for it ... — Mary Francis Kennedy Fisher

Both had trouble generating conviction of their own but no trouble at all reacting to what they viewed as the false conviction of others. — Michael Lewis

Credit-default swaps, I think, have serious problems associated with them. — Alan Greenspan

It's like chess, you know. The Queen saves the King. — Terry Pratchett

I keep hearing that being a geek is cool now, but I'm not sure the rest of the world has gotten the memo — Liz Czukas

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

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

Consumer groups fought hard to provide investor protections for 'special entities' such as pension funds, schools, and municipalities who purchase swaps. No comparable protection exists in the futures market. — Daniel L. Doctoroff

In a barrel of odds and ends it is different; things get mixed up, and the juice kind of swaps around, and the things go better. — Mark Twain

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

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

When the Goldman Sachs saleswoman called Mike Burry and told him that her firm would be happy to sell him credit default swaps in $100 million chunks, Burry guessed, rightly, that Goldman wasn't ultimately on the other side of his bets. Goldman would never be so stupid as to make huge naked bets that millions of insolvent Americans would repay their home loans. He didn't know who, or why, or how much, but he knew that some giant corporate entity with a triple-A rating was out there selling credit default swaps on subprime mortgage bonds. Only a triple-A-rated corporation could assume such risk, no money down, and no questions asked. Burry was right about this, too, but it would be three years before he knew it. The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG - American International Group, Inc. — Michael Lewis

Goldman Sachs itself - and so Goldman was in the position of selling bonds to its customers created by its own traders, so they might bet against them. Secondly, there was a crude, messy, slow, but acceptable substitute for Mike Burry's credit default swaps: the actual cash bonds. According to a former Goldman derivatives trader, Goldman would buy the triple-A tranche of some CDO, pair it off with the credit default swaps AIG sold Goldman that insured the tranche (at a cost well below the yield on the tranche), declare the entire package risk-free, and hold it off its balance sheet. Of course, the whole thing wasn't risk-free: If AIG went bust, the insurance was worthless, and Goldman could lose everything. Today Goldman Sachs is, to put it mildly, unhelpful when asked to explain exactly what it did, and this lack of transparency extends to its own shareholders. If a team of forensic accountants went over Goldman's books, they'd be shocked at just how good Goldman is at hiding things, — Michael Lewis

They had stumbled either upon a serious flaw in modern financial markets or into a great gambling run. Characteristically, they were not sure which it was. As Charlie pointed out, It's really hard to know when you're lucky and when you're smart. — Michael Lewis

Our rural ancestors, with little blest,
Patient of labor when the end was rest,
Indulged the day that housed their annual grain,
With feasts, and off'rings, and a thankful strain. — Alexander Pope

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

I was able to use credit default swaps to protect not only my investments but the hundreds of jobs that exist because of my investment. I understand the dangers of credit default swaps and the benefits of credit default swaps. — Jeff Greene

Little is known about the love lives of the undead. Really, past the brain-eating, reanimated corpse angle, not much is said for the zombie's perspective. So they ate brains - big deal! Sure, they were corpses - so what? Indeed, there was the smell, but whose fault was that?
At first glance they were brain-hungry cannibals, (Mmm, brains. Maybe with a little cilantro or a garlic rub - mashed potatoes and brainsloaf - brains pot pie - penne a la brains...) but in reality, zombies were not the mindless man-eaters or virus-addled lunatics jonesing for human flesh depicted in the movies. Just like everything in life - or rather, unlife - things were more complicated. Zombies were, until very recently, people. And with that came wants, desires, longings. Needs.
Asher had been troubled by the zombie loneliness until Brenda, the attractive corpse he'd met in a less animated state earlier, pulled him into the cemetery, threw him down on a slab and shagged him silly. — Daniel Younger

Once I had a potentially heart attack-inducing eight double espressos in one day. I think my assistant secretly swaps my coffees for decaf as she doesn't want me to die of caffeine overdose. — Steven Soderbergh

Of course most Americans don't know how A.I.G. brought the world's financial system to near-ruin or what credit-default swaps are. They may not even know what A.I.G. stands for. But Americans do make the connection between their fears about their own jobs and their broad understanding of the A.I.G. debacle. — Frank Rich

While we're talking about votes, Bernie Sanders is one who voted to deregulate swaps and derivatives in 2000, which contributed to the over-leveraging of Lehman Brothers, which was one of the culprits that brought down the economy. — Hillary Clinton

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget. — Matt Taibbi

IN AN OLD YUGOSLAV JOKE mocking police corruption, a policeman returns home unexpectedly and finds his wife naked in their marital bed, obviously hot and excited. Suspecting that he surprised her with a lover, he starts to look around the room for a hidden man. The wife goes pale when he leans down to look under the bed; but after some brief whispering, the husband rises with a satisfied, smug smile and says "Sorry, my love, false alarm. There is no one under the bed!," while his hand is holding tightly a couple of high denomination banknotes. — Slavoj Zizek

default swaps on subprime mortgage bonds. Only a triple-A-rated corporation could assume such risk, no money down, and no questions asked. Burry was right about this, too, but it would be three years before he knew it. The party on the other side of his bet against subprime mortgage bonds was the triple-A-rated insurance company AIG - American International Group, Inc. Or, rather, a unit of AIG called AIG FP. AIG Financial Products was created — Michael Lewis

Currency speculation-over a trillion dollars a day-is a tax-free activity. The notion of a tax on "day trades" or other speculative swaps was revived in recent years, but has been studiously ignored by all our purveyors of conventional economic wisdom. That is because we have been persuaded, against logic, and moral sense, that the institution that most needs our support these days is not society, nor the human community, but the global corporation. — Eric Kierans

I was a high-school teacher. I am a strong advocate for women's rights, and I'm not a woman. — Justin Trudeau

In early July, Morgan Stanley received its first wake-up call. It came from Greg Lippmann and his bosses at Deutsche Bank, who, in a conference call, told Howie Hubler and his bosses that the $4 billion in credit default swaps Hubler had sold Deutsche Bank's CDO desk six months earlier had moved in Deutsche Bank's favor. Could Morgan Stanley please wire $1.2 billion to Deutsche Bank by the end of the day? Or, as Lippmann actually put it - according to someone who heard the exchange - Dude, you owe us one point two billion. — Michael Lewis