Scary article. Revenue-based financing (RRB) already exists but Blue Owl and others are making bets on a large scale and at interest rates that are decoupled from actual risk. The PluralSight story is instructive: it looks like an obvious interest rate trap and it's hard to see where the backstop is when things start to unravel. I don't see how you can keep the contagion limited if you can't see the scope of risk and don't price it in correctly from the beginning.<p>Anyone who had accounts at SVB or First Republic will appreciate how quickly interest rate traps can go bad. At least there was a backstop in that case.<p>Edit: typo
Oh I think I remember how this movie ends, everyone dies right?<p>Kidding aside, this seems like a ridiculous repeat of the events that led up to 2008, albeit in a slightly modified form. Why on Earth do we keep allowing this to happen?