Van Vleet: Rising Real Rates Break Crypto As T-Bills Yield 4%
Charles Van Vleet · Charles Van Vleet – Thinking Differently with Pensions at Textron (Capital Allocators, EP. 283) · Nov 28, 2022 · at 8:49
Charles Van Vleet, Chief Investment Officer at Textron, discusses how the transition away from a decade of near-zero interest rates and low volatility disrupts financial markets.
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“When you lift rates from a negative one and a half real to a positive one and a half real stuff just breaks because you would spend so many years with no volatility in rates that almost has broken the country of the UK. And now it's breaking the whole crypto because people aren't going to put up with earning zero on their crypto when I can get four percent in the T-bill.”
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