Nassim Nicholas Taleb

@nntaleb ↗

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Last Checked Dec. 24, 2022

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Tue Dec 06 18:28:30 +0000 2022

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Nassim Nicholas Taleb @nntaleb

@jaffer_ali1 The text is false. Swaps involve NO borrowing. — PolitiTweet.org

Posted Dec. 6, 2022

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Nassim Nicholas Taleb @nntaleb

@jaffer_ali1 You can have a swap for 1 million dollars, with tail risk of $10k, as the nominal is not exposed, only the interest paid-received. If you offset a swap, it swells your balance sheet. — PolitiTweet.org

Posted Dec. 6, 2022

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Nassim Nicholas Taleb @nntaleb

Good thread. The AI didn't get swaps, uses buzzwords like a psychologist talking abt statistics. Swaps entail NO borrowing: parties engage in paying interest rate variations, but are by convention booked in nominal. A $1M swap may have a risk of $10K. Often dynamically margined. — PolitiTweet.org

$80 Trillion of FX swaps not on balance sheets? What could go wrong? Not my area, but it seems menacing, no? https://t.co/GtJCjRZeB4

Posted Dec. 6, 2022