A sovereign wealth fund funded by government assets appears to shift the US from issuing unsecured treasuries to issuing secured debt backed by collateral, but this creates an 'incumbrance' problem: there is a finite amount of collateral available relative to $36 trillion in debt, creating questions about what happens if collateral is exhausted or asset values decline.

causalpending

Speaker

Tracy Aloway

Evidence Quote

there's a limited amount of collateral that you can put up into a bond and at some point you start to run out of it

Source

Jim Millstein on the Massive Risks of Any 'Mar-a-Lago Accord' | Odd LotsBloomberg Podcasts
Created: 8/11/2026, 6:58:13 AM

My Notes

Loading notes...