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I think we are saying the same thing - at the moment money chooses to be VC funds because normal debt has such low interest rates. Yes I absolutely think there

I think we are saying the same thing - at the moment money chooses to be VC funds because normal debt has such low interest rates. Yes I absolutely think there will be shake ups in VC market meaning smaller more frequent and earlier investment (taking the place of what used to be bank business loans). And I think a lot of money will want to do that. But both of these are not debt - and until savings rates globally change then there will be plenty of supply of money and interest rates will remain low. Given that savings rates generally correlate to countries growing in wealth then SEAsia and Africa suggest there will be a long while before interest rates tip up structurally

lmm 7y ago
> I think we are saying the same thing - at the moment money chooses to be VC funds because normal debt has such low interest rates. > Yes I absolutely think there will be shake ups in VC market meaning smaller more frequent and earlier investment (taking the place of what used to be bank business loans). And I think a lot of money will want to do that. > But both of these are not debt - and until savings rates globally change then there will be plenty of supply of money and interest rates will remain low. Low interest rates on normal debt are exactly what creates an opportunity for a novel kind of debt, which is what the article is talking about. Right now there's a lot of money in VC equity that would rather be in any kind of decent-yield debt - even novel debt backed by unconventional collateral. As and when interest rates rise, all that money will go back into conventional debt and the opportunity will go away.