Navigating Leverage and Risk in Investments

Abdul Al-Asaad, CEO and co-founder of Basic Capital, joins Other People’s Money to discuss how Basic Capital is revolutionizing access to leverage for everyday Americans. He argues that American’s have far too much access to credit for the wrong use, consumption, and far too little access for positive uses like investing in assets that could change their financial future. He discusses how Basic Capital’s term financing works, why most of the capital you receive through Basic Capital is invested in private credit, and why he believes that for many people inaction is a bigger risk than taking a leveraged bet on stocks and bonds.

Learn more about Basic Capital: https://basiccapital.com

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Timestamps

00:00 Intro

00:52 Basic Capital Backlash

10:12 Leverage as General Purpose Tool

17:07 Risk in Leverage

20:13 Learning from the Kings of Leverage

25:42 Term Financing

31:46 Private Credit & S&P 500: How Basic Capital Invests

38:51 How Private Credit Works

44:44 Private Credit Hates Basic Capital

48:37 The Risk of Being Left Behind

56:02 Basic Capital Fees and 401k Investing

01:03:32 Building a New Credit Market