Blythe Masters Quotes

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

Credit ratings and risk weightings must undergo a thorough process of review and revision. No security or instrument on the planet should have a zero risk weighting.

When you read that UBS did not even view parts of its mortgage portfolio as having market risk, it becomes very obvious that a number of firms were not dotting the i's and crossing the t's when it comes to risk management.

In bypassing barriers between different classes, maturities, rating categories, debt seniority levels and so on, credit derivatives are creating enormous opportunities to exploit and profit from associated discontinuities in the pricing of credit risk.

Credit-default swaps remedied the problem of open-ended risk for me. If I bought a credit-default swap, my downside was defined and certain, and the upside was many multiples of it.

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.

What we have found over the years in the marketplace is that derivatives have been an extraordinarily useful vehicle to transfer risk from those who shouldn't be taking it to those who are willing to and are capable of doing so.

We tend to think of the stock and bond markets as relatively recent historical phenomena, but, in fact, there have been credit markets since human civilization first took root in the Fertile Crescent.

You want banks to take some risk, but intelligent risk.

Risk analysis can cater to any sort of hazard, but their profession owes its existence to a relatively narrow band of possible dangers.

None of us live in a zero-risk world.

In business, I think the most important thing is to position yourself for long-term and not be too impatient, which I am by nature, and I have to control myself.

People are used to dealing with risk.

In any endeavor, you have to understand your tolerance for risk. What's a failure you can afford?

People say I take too many risks. But the fact is, there is risk involved in every shot. You can get out trying to defend a ball as well.

Complexity and interconnectedness matter as much as size in assessing risk in banking.

The most important thing that we entrepreneurs have is our human capital. If we exhaust it, we make bad decisions.

Bringing back something akin to Glass-Steagall would clearly help limit risk in the system. And that's a very good and worthy goal. Letting banks sell securities and insurance products and services allowed them to grow too big too fast and fueled a culture that put profit and pay over prudence.

When you lose control of risk at a financial institution, you do a variety of unfortunate credit extensions or purchases - and all of a sudden, you've blown up your business.

As an industry, we have a responsibility to manage risk in a way that is prudent.

Whether it's Bellator, OneFC, World Series, whatever, the door's open for me. Financial stability is the most important thing for me.

The advantage of knowing about risks is that we can change our behavior to avoid them. Of course, it is easily observed that to avoid all risks would be impossible; it might entail no flying, no driving, no walking, eating and drinking only healthy foods, and never being touched by sunshine. Even a bath could be dangerous.

Operational risk is the risk of loss resulting from bank operational failures, such as rogue traders, fraudulent sales practices, and cyber risks. Operational risk capital is money or assets that banks have to hold to shield the economy from the consequences of these kinds of failures.

Large credit guarantees also impede optimal allocation of financial resources and increase moral hazard.

Unfortunately, tools that transfer risk can also increase systemic risk if major counterparties fail to manage their own risk exposures properly.