The Mark Moss Show The $300 Trillion Credit Rotation Nobody Sees Coming
Sep 18, 2025
A massive $300 trillion credit rotation is underway, largely overlooked by investors. Instead of seeing Bitcoin treasury companies as mere bubbles, they're creating specialized financial products that could redirect trillions from troubled credit markets into Bitcoin. The discussion highlights how these firms are executing a unique capital-conversion strategy, leading to international validation and potential supply shocks in the Bitcoin market. Practical tips on investing in Bitcoin-treasury companies and backing instruments for yield are also shared.
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Trapped Institutional Capital
- Many institutional investors are legally forced into fixed income, creating a large pool of trapped capital.
- These mandates force pension and insurance funds to hold bonds that lose purchasing power against inflation.
Broken Credit Markets
- Traditional credit markets are increasingly complex and opaque, echoing 2008's bundled-risk failures.
- Rising interest costs and opaque tranching create systemic fragility and mispriced risk.
Margin Compression On Wall Street
- Wall Street margins on bond management and underwriting have compressed toward zero.
- Low fees disincentivize innovation and push firms into crowded, low-return niches.