The Business Brew Abdul Al Assad - Leverage For The People
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Dec 11, 2025 Abdul Al-Assad, founder and CEO of Basic Capital, passionately advocates for more leverage in retirement portfolios. He explains how his platform provides long-term, non-recourse financing for retail investors, aiming to democratize wealth-building. Abdul contrasts traditional loans with his innovative 'retirement mortgage' concept and discusses historical credit crises to highlight market resilience. He challenges listeners to consider how leverage can work in their favor, pushing back against public skepticism surrounding retail investment strategies.
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How Basic Capital Was Born
- Abdul couldn't get banks to offer long-term financing to buy diversified equities, so he built Basic Capital.
- He framed the product as a 'retirement mortgage' combining index investing with mortgage-style duration financing.
Only Use Duration Financing With A Long Horizon
- Use long-duration, non-mark-to-market financing and dollar-cost average to avoid forced liquidation risks.
- Abdul advises only investors with 10+ year horizons should consider this levered approach.
Match Floating Borrowing With Floating Assets
- Match floating-rate borrowing with largely floating-rate bond allocations so yield covers financing cost.
- Abdul highlights investing in BB credit and floating bank loans to preserve a positive spread versus SOFR-based financing.
