Thread by @Rewkang

Classic down market strategy is OTC desks selling structured product deals to project treasuries with questionable terms

Happened last cycle, gonna happen again this cycle

https://twitter.com/mgnr_io/status/1417742381248516097

For project teams, unless you're doing massive layoffs, burn rates will remain the same through bear as it was in the bull, but you can't take the easy route of raising more $ at higher and higher vals

Generating yield through selling options seems like an answer, but is it?

Last market cycle, there were even funds that spun up their own structured products to sell to others. Selling vol was the original yield farming

There's alpha in understanding these secular shifts in market structure, but those that trade vol already know this