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@sonchoy I'm too old for this shit. Blocked.

@sonchoy Are you running a ponzi scheme when you borrow money from the bank to pay for a home?

@calla Part of those expenses I mentioned are premiums paid for hedges against exactly that situation.

@zeroempathy There is seed money that comes in, the fund then goes out and issues different layers of notes carrying different risks with the intention of using the proceeds of those notes to buy or initiate mortgages. The notes are for 1 to 5 years, but the mortgages are for 5 to 30 years...

@randomx45 He is in the private markets.... he runs a fund...

@kati They dont sell the debt at 10%. The fund leverages its investments in debt instruments at short term rates and lends long term. Public companies do this here and there. NLY is an example of that. But anyone who can do this stuff effectively isn't gonna go work for some randomass...

@rescued2 Debt is absolutely a rational option for investors. Just not public investors. I'm structuring a debt fund worth north of 2 billion right now that has an expected IRR of 10+ percent. And this is mortgage debt, not more risky stuff. We are a bunch of suckers sitting in the public...