Blaise9

Analyst that invests using combination of financial alchemy, derivatives, and the dark arts.

[Blaise9 @blaise9]

Italian dairy companies have been financing cheese wheels since the 1950's on official records.

This is unintentionally funny because the satire is premised on this being new or innovative.

I wonder which collateral will hold up better in 5 years, AI servers or...cheese?

[JUNK BOND ANALYST @junkbondanalyst]

Basically, these Italian dairy companies had all these wheels of aging cheese sitting in warehouses, slowly getting better with time. They could just sell it in a few years... but why wait when you can securitize it now?

So they create an SPV, a special purpose vehicle, that holds the cheese wheels as the underlying asset. Then they package them up and sell securities or bonds backed by the future value of this maturing cheese. Investors hand over €10 million today, and the dairy gets the cash upfront while the cheese keeps aging in the warehouse.

Private credit funds are reportedly circling the structure because, hey, cheese is a tangible asset that appreciates as it ages. It’s the new frontier for asset-backed finance.

By the way, these cheese-backed securities, whenever you hear about bundling actual wheels of cheese that sit in a warehouse and occasionally get eaten, think 'sh*t.'

Our friend @junkbondinvest found out that these structures were being put together with literal edible inventory as collateral. So now someone clever might want to short the cheese, which means betting against it. You profit if the wheels don’t perform as expected... maybe because the cheese gets nibbled, demand drops, or it just doesn’t mature the way the models said it would.

[Blaise9 @blaise9]

@BenFranksAltEgo JP Upgrade to overweight on the stock.

[Blaise9 @blaise9]

@blondesnmoney $SMPL in the same basket, oversaturation in the sector

[High Yield Harry @HighyieldHarry]

I'm still scratching my head a bit at how the fintwit narrative is Private Credit is all going to zero but somehow Private Equity problems aren't getting mentioned at all.

[John Carmack @ID_AA_Carmack]

The modern age has richly rewarded people with a combination of high intelligence and high agency. Now that many aspects of intelligence are successfully being automated, it seems likely that people with relatively lower intelligence but exceptional agency will come into their own if they are willing to egolessly accept AI advice.

Imagine a ruthless criminal that completely trusts everything their always-on AI glasses are telling them, knowing that it is carefully looking out for their best interests and isn’t scheming to betray them.

[Wasteland Capital @ecommerceshares]

Silver down -35% today.

Yet another industry disrupted by AI.

[David Orr @orrdavid]

This account is a work of art.

[The Crude Chronicles 🛢 @crudechronicle]

Survive long enough (on Wall Street) and you will start to see the same things over and over.

[Blaise9 @blaise9]

@Investor_NICK_ Wait, it doesn't become cooked until "after" the worst class of investors buys, right?

[Lawrence Hamtil @lhamtil]

Consumer staples guys watching semi stock action

[Grant Williams @ttmygh]

Good point, well made.

[Blaise9 @blaise9]

@lhamtil Should consider $CWT California Water Service, they are a good franchise and California is spending to ensure they have more reliable water service after years of underinvestment.

Probably get consolidated/acquired too at some point.

[Leyla @LeylaKuni]

Regional banks discovering private credit yields

[Jay Anderson @TheProjectUnity]

I can believe it.

[Blaise9 @blaise9]

@blondesnmoney MAIN and CSWC are a few of the only "good actors" in the BDC space historically that don't intentionally dilute shareholders just to grow AUM.

That being said, at 2x pricebook its still at a hefty 25% premium to its 10yr avg of 1.6x

[Eddy Elfenbein @EddyElfenbein]

Gold is mentioned in the bible 400 times. Value stocks, not once.

[Blaise9 @blaise9]

@lasse108 @BuyCheapNPray Pretty sure a series of mis-translated articles about Braskem Idesa (jv) restructuring and Novonor restructuring somehow created the concern of immediate Braskem restructuring.

Its almost comical. Lazard's last Brazil deal for Light got the front-end bonds tendered at $96+ tho.

[blake @blakestonks]

TLT.

Big move coming soon in the bond market, getting super tight in this four-year wedge.

$TLT

[80's Wrestling @80sWrestling_]

Stone Cold has hit everyone in this photo with a Stunner, including the President

[Lawrence Hamtil @lhamtil]

The combined weight of staples, healthcare, and utilities in the US domestic market is at or close to its lowest level ever; meanwhile, technology remains at or close to its highest weighting ever.