Elliott's Singer Says Derivatives Bad For Society

Jan 23 2014 | 1:43pm ET

Paul Singer feels about derivatives the way most people feel about junk food: He knows they aren't good for anyone, but he still loves them.

"I love trading them," the Elliott Management founder said at the World Economic Forum in Davos, Switzerland. But, he added, "on balance, there's been a net negative to society from this particular type of invention."

The hedge fund manager said that derivatives increase leverage and complexity of balance sheets, dangers which outweigh their hedging benefits. Singer said that the banking industry remains a major threat to global stability.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...