The Hurdle Rate Podcast Episode 12 - Upgrade with Junk Grade
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Jun 3, 2025 Dive into the innovative world of investment with discussions on the newly introduced STRD preferred stock and its advantages over traditional securities. Explore whether Bitcoin has peaked in its current cycle and what interest rates should look like. Discover James Wynn's fascinating journey through the financial landscape. The podcast also highlights the dynamic roles of retail versus institutional investors and the transformative power of Bitcoin as collateral in modern finance.
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STRD: High-Yield Junior Preferred Stock
- STRD is a high-yield, junior preferred stock offering with more risk and higher returns than STRF and STRK.
- This builds out Strategy's capital structure and offers investors choices based on their risk tolerance and yield requirements.
Strategy's Capital Stack Layers
- Strategy is assembling a layered capital stack with various preferred equities offering different seniority levels.
- These instruments provide a structured risk-return yield curve similar to traditional high yield bond markets.
Yield Advantage Over Market ETFs
- Strategy's yield offerings significantly surpass yields of mainstream preferred equity and high-yield bond ETFs.
- This positions them advantageously to capture a large share of capital allocation in income-focused portfolios.