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.

4 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

      Delete
    2. yeah i rarely even visit my own blog these days.

      no, the risks are
      - liquidations BEYOND the buffer
      - the entire slew of smart contract risks

      the process is complicated if you are trying to understand how it works, and especially when using a non-custodial wallet.

      - how do you get DAI?
      - how do you get the thing to get DAI?
      - how do you transfer the DAI after you get it?

      it's definitely not as simple as setting up a binance account, which is easy. the problem is funding the binance account haha.

      Delete
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