Mark Moss met with London bankers including the Rothschilds about over-collateralized debt paying 10%. They explained that modern products like Stride and Strife are essentially recreations of British consols, perpetual bonds from the 1700s-1800s that paid 3-5% and never matured.
When we were in London, I was meeting with some of the bankers there. We were talking to the Rothschilds and they're like, you know, we have this century-long timetable and we don't move really quickly. And preference shares aren't really something that's used a lot in the UK. And I said, forget the preference shares for a minute. Is there an appetite for overcollateralized debt that pays 10%? They're like, well, of course, right? So of course the appetite is there. You just have to get it packaged up properly in front of the right people.
If you read the history of the Rothschilds, they were very famous for selling consols, which were British government sovereign debt issued from like 17— 60 on for 100 years, and they paid 3 to 5%. They were perpetual. They never came due. Par value, £100. So if you think about what that is, that's actually just what Stride is, or Strife. What we did is just copied British sovereign debt from 200 years ago.
