John Hull Quotes

The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well.

Fannie Mae has never publicly disclosed how much money it could lose if interest rates rose 1.5 percentage points in a very short period of time.

You know, when the cost of capital goes down, when credit becomes cheap, people start taking greater and greater risks.

We test everything on a one- and a three-year cycle. And you want to stress-test a model, and the three-year test usually does that because you have a growth and value bias. You have different interest rate environments.

There is no risk-free path for monetary policy.

It isn't given to man to be able to run a financial institution where different interest-rate scenarios will prevail on all of that so as to produce kind of smooth, regular earnings from a very large base to start with.

The special sphere of finance within economics is the study of allocation and deployment of economic resources, both spatially and across time, in an uncertain environment. To capture the influence and interaction of time and uncertainty effectively requires sophisticated mathematical and computational tools.

And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.

I've got a huge, huge position in mortgage-backed securities. I started accumulating them in 2009, when the market was really down and things were really scary.

At the heart of banking is a suicidal strategy. Banks take money from the public or each other on call, skim it for their own reward and then lock the rest up in volatile, insecure and illiquid loans that at times they cannot redeem without public aid.

You can make great money in a utility type of business by borrowing cheaply and lending sensibly but that's not what's being done.

Banks may be considered as the primary source of "paper speculation," and only the foster the spirit of gambling in paper, in lands, in canal schemes, town lot schemes, manufacturing schemes and whatever could hit the madness of the day.

Speculation, in its broadest sense, is not an evil in itself, but the contrary, and relieves public distress far oftener than it creates it.

The Fed Note is essentially unsound. It is the worst currency and the most dangerous that this Country has ever known.

Credit is of pernicious consequence to that Nation, that uses or encourages it beyond Nature.

The markets were run by mathematicians and their models but they had no business sense.

Though the principles of the banking trade may appear somewhat abstruse, the practice is capable of being reduced to strict rules. To depart upon any occasion from these rules, in consequence of some flattering speculation of extraordinary gain, is almost always extremely dangerous, and frequently fatal to the banking company which attempts it.

We are borrowing cheaply because we are the best looking horse in the glue factory.

The American banking system, which at one time extended productive loans to agriculture and industry, has today become a giant betting machine

You cannot have fairness unless you have transparency…We don’t know that is going on inside those boxes … we could have a meltdown [in the entire economy].

Economic freedom is a highly desirable state -- but in bust and boom we must be prepared to face the its consequences.

When interest rates are coming down, you cannot have high margins.

You cannot take bank interest rates very sharply down: you will lose your deposit franchise.

It is not my belief that we need greater government regulation of hedge funds with respect to the systemic risk they create.

When it comes to policies of central bankers, the biggest systemic risk we have... are those policies.