The Hurdle Rate Podcast Episode 44 - Digital Credit Clarity
Jan 20, 2026
Explore how digital credit could enhance retirees' income and reshape investment strategies. Delve into the implications of Coinbase's exit from the Clarity Act and the competition between tokenized stablecoin yields and traditional credit. Learn about the impact of credit spreads on sovereign risk, and why banks resist paying deposit yields. The hosts share insights on the tech stack behind their operations, emphasizing the importance of team culture and consistent communication in the fast-paced world of finance.
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Short-Duration Credit With High Yield
- Stretch and SEDA behave like ultra-short duration credit with unusually high yields compared to high yield bonds.
- Their short effective duration plus Bitcoin backing can offer far higher yield per unit of risk than traditional fixed income.
Variable Coupons Improve Downside Defense
- Variable-rate, Bitcoin-backed preferreds can defend price by raising coupons, unlike fixed corporate bonds.
- That makes them potentially superior in credit stress events versus traditional high yield.
Rebalance Retirement Portfolios Toward Digital Credit
- Rebalance retirement portfolios to include digital credit to raise sustainable draw rates.
- Use higher-income preferreds to convert previously growth-seeking allocations into income to improve retirees' quality of life.