About Quote by Paul Singer
“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.”
About This Quote
Source Interview: Financial Times, 2021
If all market participants are properly margined and marked to market, systemic risk reduces, but implementation challenges remain.
In simple terms: Proper margin cuts risk.
Key Takeaway
Advocate strict margin practices.
Themes
risk management
finance
regulation
Mood
analytical
cautious
Type
financial
policy
When to use this quote
- banking
- derivatives trading
- policy making
Key Concepts
systemic stability
margining
Questions to Reflect On
- How can we ensure fair margining?
- What barriers exist?
A Different Perspective
Margin enforcement can be costly and complex.
