Wednesday, July 10, 2019

Watch out for Interest Rates

It should be clear that I mostly blog about crypto these days.

However, one of the things that I still loose keep tabs on is the interest rates.


Data from here.

While everyone is getting giddy with fixed-income and fixed-income alternatives (like REITs) getting good capital gains YTD, I am very wary how long more it can continue.

The yield curve has inverted in the middle, it looks retarded.

Bond yields are going negative world wide and even in Singapore we are steadily marching towards that zero bound.

Things look ugly to me.

Just saying.

2 comments:

  1. Sorry for making another comment, but ive notices that you rarely replies to replies within replies.

    I now see that DAI gives 20% and USDC 18% on NUO. What are your thoughts on the risk using their services?
    Are there only tail end black swan risks?
    What about loan defaults or if the loaner cannot pay back?
    And why do you say that it is a complicated process? Isnt it just signing up to NUO, transfer some DAI there and lend it? Not more complicated than setting up a Binance Account.

    ReplyDelete
    Replies
    1. Seems a few people lending are losing money easily, https://www.reddit.com/r/ethereum/comments/c7s3zo/psa_i_lost_200_lending_bat_on_nuo/ . Maybe try https://app.compound.finance where lenders only borrowers seem to lose money

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