Tuesday, 27 January 2015
Last updated 11 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…