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Theranos's product didn't work. This product may be a bad deal or a good deal, but it's going to deliver what they promise. T-bills are illiquid if you want the
by freeone3000 8y ago
Theranos's product didn't work. This product may be a bad deal or a good deal, but it's going to deliver what they promise. T-bills are illiquid if you want the gains. They're promising liquidity in exchange for a cut of the gains. Sounds reasonable, at least in theory.
- ohiovr 8y agoYou see, if Treasury interest rates rise, the value of existing treasuries from a lower interest rate fall. If you have to wait 20 years to get whole on the deal then it's effectively illiquid. But if you have to liquidate, then you must lose prinicple. Its a problem ongoing right now in the bond market.