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The thing I never understood was why they didn't just invest in treasuries. Yield on the US 10-year is currently north of 3.3%, closer to 2% for a while. That
by KMag 4y ago
The thing I never understood was why they didn't just invest in treasuries. Yield on the US 10-year is currently north of 3.3%, closer to 2% for a while. That's under inflation, but if you're a small start-up holding 100s of millions or billions of other people's money, that's enough to hit screw-it money in a few years without the constant fear of things going terribly wrong.
- quickthrowman 4y agoYou wouldn’t want to hold 10 year bonds, way too much duration risk. 30 day T-Bills is what they’d want to hold to minimize risk.
- junofan 4y agoThey claim most of it’s in T-bills.
- trhway 4y ago> holding 100s of millions or billions of other people's money, that's enough to hit screw-it money in a few years without the constant fear of things going terribly wrong. so, you can have that honest 2% per year for several years or you can just take it all almost immediately. History as well as crypto today is pretty clear about what humans prefer. Absent the "take it all immediately" option people do though go for the 2% option. So if you see that they can go for such an option and yet haven't - i.e. they think they have a much better option than to earn easy 2% off somebody's billions (what can be better than that?) - that is a clear sign what option they really chose :)