2 sats \ 3 replies \ @kilianbuhn 4 Oct 2022 \ parent \ on: I'm Nik Bhatia, founder of The Bitcoin Layer and author of Layered Money. AMA. bitcoin
How profitable is trading bonds for these institutions.
It's kind of obvious that buy&hold Botcoin would have done better ...
but would a buy&hold portfolio of bonds&index ETFs have done better? Why do these institutions even bother?
bonds as an asset class are a fixture of finance. fixed coupon securities have a very powerful effect on financial planning, especially across decades. one year's returns do not make or break an asset class. bitcoin is a very young asset class and quite beyond the mental reach for most institutional investors.
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So should your ex-employer fire all traders and just buy&hold the S&P500? Yes or No?
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my ex-employer is a fixed income manager tasked with short-term capital preservation and hyper liquidity, so no
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