The Hurdle Rate Podcast Episode 48 - Bullish Digital Credit
Feb 18, 2026
Conversation ranges from reflections on Bitcoin events and debates to when higher leverage can make sense in bear markets. They dig into digital credit risk, underwriting methods, and why markets may undervalue these instruments. Discussion also covers AI disruption, a K-shaped economy, fiat fragility versus digital monetary tech, and how transparency could reshape credit markets.
AI Snips
Chapters
Transcript
Episode notes
Debate In Bear Markets To Build Conviction
- Go to events and debates in bear markets to test and strengthen conviction rather than hide from volatility.
- Engage skeptics directly because bear-market conversations reveal true doubts and build durable investor understanding.
Size Amplification By Stress-Testing Coverage
- Underwrite amplification by modeling balance-sheet coverage at extreme drawdowns and set BTC coverage ≈1 at severe stress points.
- Use that coverage target to size permissible amplification and preserve investor willingness to add capital.
Basel Rules Block Institutional Bitcoin Credit
- Rating agencies and Basel rules currently assign zero credit to Bitcoin on corporate balance sheets.
- Changing U.S. regulatory standards away from Basel could unlock institutional collateral use and revalue credit markets.