“Interest rates (and changes, and future expectations regarding them) have huge impacts on asset prices” is something which is widely understood by finance professionals. “Asset prices materially impact your life” is not widely understood except by finance professionals.https://twitter.com/sama/status/1215450930293817345 …
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(FWIW I think that people should probably concentrate on the idiosyncratic risks part of that derivative rather than the interest rate part but it’s worth at least understanding that it is there so you don’t do something like get an ARM thinking ‘If rates rise, equity covers it’)
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(FWIW a lot of people would use “complex financial derivative” as a slur. I’m just using it in the positive sense. I broadly think equity ownership by employees is one of tech’s major structural innovations and is a huge portion of ongoing renegotiation of how the pie is split.)
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(There exist many options to trade off legibility / certainty for upside if legibility / certainty are more important to you, and there are many firms which are happily selling what you’re buying.)
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End of conversation
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One of the hard things about this is that it is hard to estimate a "risk-free rate" (c.f. the Girsanov theorem) to make this psychologically obvious. Without the comparison to a risk-free rate, it is hard to rationalize!
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