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hm... I suppose, yeah. (Though bills only pay return on redemption, and bonds every six month, so technically they'd be short their commitment -- in a liquidity sense -- for parts of the year).
Bonds are very liquid, though. They shouldn't have to wait for redemption to get the present discounted value of the yield.
Also, they have lots of exit requirements, right? So, Tether only needs enough liquidity to cover what's eligible for cash redemption.
true-true-true
I listened to an interview with their CEO, who described their strategy. They buy short-term bonds, take the coupon profit, and buy bitcoin with it. They now hold over 90,000 BTC; they are a financial behemoth.
supposedly they are actually only holding 77% cash and cash equivalents...
What I had understood about their reserve strategy is that they held a basket of goods that could guarantee 1:1 conversion.
If they're getting 4% on bonds, then they could go about 96% bonds and 4% bitcoin, right?