The risk-free rate is nearly at 5% right now! Has anyone seen how shitty LP returns have been on average over the past 5 years? SVB had all their eggs in that basket, and they designed a balance sheet with a duration risk and asset strategy that didn’t take into account the possibility the music could stop. And the music has been stopping. Ask any founder who has tried to raise in the past six months.

Reply to this note

Please Login to reply.

Discussion

A glorious age of 0% interest for ever. I guess only if you assume that does 30 years at 1.5% sound like a good idea?!?