John Hull Quotes

The problem with interest rates are that you are not modeling a single number, you are modeling a whole term structure, so it is a sort of different type of problem.

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.

Our tree is actually a tree of the short-term interest rate. The average direction in which the short-term interest rate moves depends on the level of the rate. When the rate is very high, that direction is downward; when the rate is very low, it is upward.

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.

When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward.

The big question is: When will the term structure of interest rates change? That's the question to be worried about.

With interest rates rising, gold doesn't pay an interest rate, but every other currency - it becomes not only less important to hold gold as an alternative, but more expensive to hold it as an insurance policy and so that will be a burden on the price of gold.

In the interest rate area, traders have for a long time used a version of what is known as Black's model for European bond options; another version of the same model for caps and floors; and yet another version of the same model for European swap options.

The history of interest rates is really the history of inflation. When inflation is high, interest rates are high, and when inflation is low, interest rates are low.

The Adjustable Rate Mortgage (ARM) is like the neutron bomb. It’s going to kill all the people but leave the house standing

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

When the record company pays you an advance, it is just that - an advance. And it's at worse rates than any bank would charge you to pay them back.

A well-functioning transmission should at some point go from the overnight right up to 40 years, and that is the ultimate objective in having monetary transmission that affects the whole gamut of borrowing tenure.

Stock price multiples are negatively correlated with real interest rates. As interest rates rise, the market multiple will fall.

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.

Buying a home is exciting, but it's also a big financial commitment.

Big banks, highly leveraged casinos, do whatever they can to keep the cost of their gambling as cheap as possible. This means keeping interest rates as cheap as possible.

People 'demand' the opportunity to gamble away money they do not have, just like people 'demand' money from loan sharks at extortionate interest rates. This is a warped, empty type of freedom, in which the powerful are free to exploit the vulnerable.

First, pay off your high-interest-rate debt. If you have student loan debt - that's low interest rate; that has a tax benefit - you can leave that out. A mortgage can be an OK one. Credit card debt is poison. That needs to be paid off right away.

What you want to watch are the lenders, not the borrowers. The borrowers will always be willing to take a great deal for themselves. It's up to the lenders to show restraint, and when they lose it, watch out.

We should, as a country, be very concerned about our borrowing cost.

The cost of money rises dramatically if you can't afford to keep it in a bank.

What is important is that in a capital-scarce country like India, the real interest rate needs to be positive enough to encourage healthy growth of financial savings; we get into macro difficulties when real rates on financial savings become negative for a length of time.

Modern economies rely on debt, which encourages productivity and growth. But that system of credit requires consequences for debtors who default.

Borrowing isn't inherently bad; it depends a lot on what the debt is financing.