Re:IRS Files $44B Claims Against Bankrupt FTX
by prepend on Thursday May 11, 2023 @03:51PM
(#35907534)
These investments were comparable to money market funds. There’s no way passive cash is viable at those returns.
If Commercial Real Estate is paying 8.5% and someone starts offering “Crypto Commercial Real Estate” as a competing product for those same fundamentals but offers 400% return, would you still be unable to assess its viability?
Re:IRS Files $44B Claims Against Bankrupt FTX
by TuringNYC on Thursday May 11, 2023 @04:05PM
(#35907690)
>> These investments were comparable to money market funds. There’s no way passive cash is viable at those returns.
Totally agree. But why would you compare crypto high yield accounts to MM funds, rather than, say, CLOs or CLO funds, or structured notes (https://pprcapitalmgmt.com/invest-in-a-real-estate-fund/) or factored receiveables funds
Even a person with a finance background such as myself cannot realistically state what yield is "viable", especially without history.
Commercial Real Estate is paying 8.5% preferred these days...is that viable? Not sure, but I can look at history across rate environments.
Crypto has no history so I think a lot of people were going on trust of the players. Many investments are about trusting the managers.