Money Stuff: The Podcast Matt Levine Ripped My Face Off: CEF, FX, A
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Aug 1, 2025 Katie and Matt dive into the wild world of retail private assets, unpacking the challenges of unicorn closed-end funds. They touch on the risky side of FX derivatives and the dilemmas faced by unsophisticated investors. The discussion shifts to the massive implications of hurricanes on insurance, especially in high-risk zones, and the failings of ratings agencies. Listeners are invited to engage with mailbag questions, sparking lively interaction while also exploring AI’s role in investment strategies.
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Paired Closed-End Funds for Unicorns
- River North offers paired closed-end funds that let retail investors go long or short on a private company unicorn index.
- These opposing funds offset each other, enabling retail investing without actual stock ownership.
Discounts and Arbitrage Potential
- These cash-settled swap funds settle in 2027, limiting discount risk over time.
- Discounts on both funds simultaneously could offer arbitrage, factoring counterparty and swap risks.
Matt Levine's Auction Rate Trade
- Matt Levine briefly invested in auction rate securities during a market dislocation decades ago.
- He earned a 7% yield for a week, marking his only personal private assets trade in years.