Jeff Walton

So as people have gotten older, they've shifted their portfolios to be more credit heavy, pension funds have more exposure, insurance companies, et cetera.

So the demand for credit is ballooned.

That caused the cost of credit to come down.

And I think the relative risk profile to the return on credit, on fiat credit instruments got completely dislocated.

So you are looking at the relative risk profile of a digital credit instrument of assets that are already on a balance sheet relative to future cash flows.

And I think there's a significant dislocation, right?

We're seeing what's happened with AI.

AI, when you're underwriting traditional credit, you underwrite cash flows.

Okay?

And when you're underwriting cash flows, there's an umbrella of probability of what you think those cash flows are going to be.

And with the development of AI, that probability umbrella explodes.

There are some companies that are going to knock it out of the park.

There are some companies that are going to get completely destroyed.

And that uncertainty should change what the credit trades at.

And now a lot of the credit in the entire credit market is completely illiquid.

It's 144A.

You don't have the ability to buy, sell, and trade it.

Nobody wants to buy your, you know,

Ford 2070 bond from you, it's illiquid.

Nobody wants to buy it.