Illiquid Rappers S04:E01
Pirates of Finance
00:00
Are You Redeeming Illiquid Products?
University of California is paying at the positive nav value, not a discounted nav rate to get to that 11%. They're buying in at that current nav, but they as a holder are guaranteed 11.25% returns. Now I see it's much more the debt play. This is like, aren't you kind of proving that you're illiquid? Like you're having to pay 11.25%. Five year rates are pretty high. One, arguably they like, why not just borrow in the treasury market could have been another option,. But they're getting that they're borrowing money effectively to meet redemptions. It feels like they're just buying liquidity.
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