“We hedge 100% of our debt against interest rate fluctuations, so we know exactly how much interest we will pay in the future.”
The a16z Show · How Bending Spoons Built a $20 Billion Compounder | Luca Ferrari
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What was described
hedge 100% of their debt against interest rate fluctuations
100%
Said nearby on the same subject
“If you’ve got the ability to go a 50-50 LVR, say loan to value ratio, you certainly should look at that. So you’re not drowning in the debt of the fund or at risk of increasing interest rates.”
“They are used by 75 percent of the world's top hedge funds and 85 percent of the S&P 100”
DI
Dan Ives
Pitch The PM ·
Hard number75% of top hedge funds; 85% of the S&P 100Share this moment
“Number two would be paying principal and interest repayments on your tax-deductible debt when you also have owner-occupied debt… preserve that, don’t pay it off”