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Quote by Robert F. Engle

“So what is the role that credit default swaps can play in an economy? Well my feeling is that if these things actually will now be traded on either exchanges or some kind of central clearing, they are going to be a very good measure of the credit worthiness of different companies.”

Author

Robert F. Engle

Robert F. Engle is a renowned economist known for his contributions to time series analysis and financial economics. In the 1970s, he proposed the Autoregressive Conditional Heteroskedasticity (ARCH) model, which had a profound impact on the study of financial market volatility. more

“I think the credit default swaps can take the place of the rating agencies who really have missed the ball in this procedure and are quite conflicted by the way the ratings are paid for. So, I would like to see credit default swaps become an evermore important way of understanding credit risk in the economy.”

Thinking Way Important Understanding Economy Risk Balls Paid Credit Agency Procedures Rating Default Evermore Credit Default Swap

Author:Robert F. Engle

“When large companies take on risk, then they impose risks on the rest of the system. And these are systemic risks and these systemic risks we never used to think were really that important, but as soon as we recognize how the financial sector - the risks the financial sector takes on can impact the entire global economy, we realize that those risks needed to be controlled for the social good.”

Thinking Important Used Social Realizing Company Economy Risk Needed Impact Financial Controlled Global Economy Social Good Large Companies

Author:Robert F. Engle

“I think we're fooling ourselves if we think that regulators are going to be able to outsmart the bankers. So, the task of designing regulatory reform is trying to make more or less foolproof regulation and that's one of the advantages of the systemic category.”

Ifs Thinking Trying Able Design Advantage Tasks Reform Categories Regulation Bankers Regulators Foolproof Fooling Ourselves

Author:Robert F. Engle

“A lot of ambitious code has been written into the law for those and we will have to see if it actually works, if we have another example of a big financial institution going bankrupt.”

Ifs Has Beens Bigs Law Written Example Institutions Financial Code Ambitious Financial Institutions

Author:Robert F. Engle