- Strive CEO Matt Cole attributes the recent sell-off in STRC and SATA to leverage liquidation, not credit deterioration.
- These digital credit instruments offer high yields tied to Bitcoin, but their thin trading and high yields attract leverage, leading to forced selling during market downturns.
- The event highlights the need for enhanced risk management practices, particularly concerning leverage limits on preferred securities linked to volatile assets like Bitcoin.
Topics: Asset types, Institutional adoption, Risk default, Alternative assets, Asset manager initiatives, Credit counterparty risk
Tags: #striveceo #mattcole #strc #sata #leverageliquidation #digitalcredit #preferredsecurities #bitcoin #yield #riskmanagement
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