4 ms·

I'm guessing Tether Ltd. won't fare that well on the credit risk assessment, but other institutions could. Given how the credit rating agencies were more than

I'm guessing Tether Ltd. won't fare that well on the credit risk assessment, but other institutions could. Given how the credit rating agencies were more than happy to give investment grade ratings to toxic waste in the run-up to the 2007-2008 financial crisis, I'm not sure that's a safe assumption to make.

cinquemb 5y ago
What's even more of a joke is most peoples unawareness of how uncollaterlized/leveraged the __existing__ banking system debts are and are complaining about USDTs cash levels… like people never heard of the eurodollar markets… ~48.5% of long dated (gte 10 year maturities) of IG USD corp bonds are rated BBB (basically 1 notch above junk), and 97.4% of the same bonds are __uncollateralized__ (aka S-NT, aka Senior Unsecured…)… this is worse than the run up into 2007-2008… thousands and thousands of CUSIP's backed by nothing in the same way people rip on USDT… The "regulations" haven't stopped the banks and corporates building up leverage in all sorts of novel ways that have yet to enter textbooks these bureaucrats will spend decades to study (and still be behind), and they sure as hell wont stop it from happening in DeFi…