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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note