The hottest Securities Substack posts right now

And their main takeaways
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Top Finance Topics

Exposing and Fixing the Media’s Relationship with Shady Finance

The Save Journalism Committee • 309 implied HN points • 01 Mar 26
đź’° Finance Securities
  1. Major newsletters accepted paid crowdfunding ads without adequate vetting or clear disclosures, which lent prestige to misleading pitches and left ordinary readers exposed to big financial losses.
  2. Crowdfunded startup markets suffer severe information asymmetry—most deals look like lemons to outside investors—so casual retail buyers are much more likely to lose money than to get rich.
  3. There are clear fixes: require plain‑English, prominent financial disclosures on fundraising pages, add stronger consumer warnings or consent steps, and either tighten or eliminate risky crowdfunding programs while publishers refuse ads they haven’t properly vetted.

Tokenized Trading Finally Comes

Points And Figures • 426 implied HN points • 19 Jan 26
đź’° Finance Securities
  1. Tokenized stocks are becoming real and come in three forms — native, wrapped, and synthetic — which can enable 24/7 trading and programmable features that may not exactly match traditional shareholder rights.
  2. Tokenization reduces friction and costs by speeding settlement, enabling easy fractional ownership, simpler lending/shorting, and broader global access, which should make markets more liquid and capital more efficient.
  3. Tokenization will shift market structure and risks: it can change who has the trading edge, create arbitrage between token and regular markets, embed AML/KYC and other rules into tokens, and introduce legal and governance uncertainties.

The DRS Mystery

The Dollar Endgame • 718 implied HN points • 29 Mar 24
đź’° Finance Securities
  1. There is a movement to directly register the entire float of a company through the Direct Registration System (DRS), which allows investors to hold their securities in book entry form directly with the issuer.
  2. The growth in DRS registrations started to stall, leading to investigations about why the consistent buy volume and DRS transfer images were not reflecting in reports. Theories emerged about how shares are manipulated and moved between book and plan shares.
  3. Complexities in the market and opaque practices by institutions make it challenging for retail investors to understand the full picture. The DRS numbers may not reflect the complete truth due to potential manipulation and changing market dynamics.

Fed's New Tool: BTFP...is it Inflationary?

The Informationist • 1257 implied HN points • 26 Mar 23
đź’° Finance Securities
  1. BTFP is a program by the Fed to provide liquidity to underfunded banks facing large customer withdrawals.
  2. Banks can borrow against securities like U.S. Treasuries with no haircut and at a low cost.
  3. BTFP offers a sweetheart deal to banks, providing liquidity without stigma of borrowing from the Discount Window.

The Great Rebalancing

Concoda • 513 implied HN points • 16 Jul 25
đź’° Finance Securities
  1. The U.S. Treasury is focusing on making the bond market stable instead of pushing political goals. This means they might hold back on issuing long-term debt for a while.
  2. Many global investors are interested in buying short-term U.S. debt, which is seen as safer. The demand is so high that the U.S. Federal Reserve may start purchasing more to keep the market in balance.
  3. There are ongoing changes in how the Federal Reserve manages its assets, which could affect interest rates and availability of cash in the banking system.
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Why Does Bank Accounting Seem So Backwards?

Without Warning • 196 implied HN points • 06 Jun 23
đź’° Finance Securities
  1. Understanding the business is more important than fixing the accounting in banking.
  2. Marking bank assets to market interest rates may not make sense due to unique aspects of bank deposits.
  3. Bank accounting rules may not accurately reflect the reality of different banking business models and can lead to economic distortions.

The Demise of Silicon Valley Bank

Net Interest • 496 implied HN points • 10 Mar 23
đź’° Finance Securities
  1. The demise of Silicon Valley Bank was caused by a collapse due to interest rate risk management and significant deposit outflows.
  2. Silicon Valley Bank's strategy of investing in securities was affected when rising interest rates led to significant unrealized losses, making the bank technically insolvent.
  3. The bank faced challenges in managing deposit outflows and was unable to satisfy demands due to a concentrated customer base and limited options like tapping into its securities portfolio.

SEC Voyage Into Futures Ends Badly

Confronting the Future • 58 implied HN points • 08 Mar 23
đź’° Finance Securities
  1. The SEC faced difficulties in court hearings about Voyager's bankruptcy and the Grayscale Bitcoin ETF.
  2. Judges criticized the SEC's handling and lack of clarity in legal arguments, raising doubts about their approach.
  3. SEC's stance on unregistered crypto exchanges could lead to regulatory challenges, pushing crypto firms to explore non-US options.

Warrant Arbitrage

The Last Bear Standing • 24 implied HN points • 06 Dec 24
đź’° Finance Securities
  1. Warrants are special financial tools that work like options, but they're directly tied to the company itself. This means that when you exercise them, the company issues new shares and may get extra cash.
  2. SPACs, which are companies created to raise money and merge with other firms, have made warrants more common. They usually come with a strike price over $10 and can help attract investors.
  3. Warrants can be traded on stock exchanges, and their value is influenced by the price of the underlying shares and how much time is left before they expire. They also have unique rules that can affect their trading.

Clouded Judgement 7.11.25 - Market Musings

Clouded Judgement • 8 implied HN points • 11 Jul 25
đź’° Finance Securities
  1. The stock market is hitting all-time highs while dealing with various global challenges. Despite worries, it's surprising how strong the performance has been so far this year.
  2. Earnings reports are approaching, and they could keep the market rising if companies perform well. Positive news about AI and productivity might help boost investor confidence.
  3. Economic factors like inflation and job market stability are being watched closely. If inflation stays calm and earnings are good, the market might continue to thrive.

This is Howey Do it — Rethinking the Security

Malt Liquidity • 10 implied HN points • 11 Dec 23
đź’° Finance Securities
  1. Speculation has been a part of human history, evolving into formal market mechanisms over time.
  2. The 'Howey' test is used to determine if a transaction constitutes an investment contract subject to securities regulation.
  3. Regulating cryptocurrencies and tokens under the Howey framework is complex, and alternative legislation may be needed to provide clarity and protection for businesses and traders.

A Same-Day Insider Baseball Doubleheader

Malt Liquidity • 6 implied HN points • 16 Feb 23
đź’° Finance Securities
  1. Predicting and trading ahead of flows can boost returns in trading systems.
  2. Informed traders may try to disguise their accumulation through various strategies.
  3. Using ETFs to conceal insider trading is an interesting idea, but practical implementation and reliability may be challenging.

The Fate of Crypto Rises and Falls on One Legal Question

Vitarbi • 2 HN points • 30 Mar 23
đź’° Finance Securities
  1. The fate of cryptocurrency relies heavily on one legal question about whether certain digital assets should be considered securities under the Howey Test.
  2. The Howey Test is used to determine if a financial instrument is a security by assessing if there's an investment of money in a common enterprise expecting profits from others' efforts.
  3. Being labeled an unregistered security in the crypto industry can lead to severe consequences, including fines and damage to reputation.

Everybody Hates Gary

Malt Liquidity • 1 implied HN point • 12 Sep 23
đź’° Finance Securities
  1. Defining a fair market is complex and involves intricate operations and risk mitigation strategies.
  2. The SEC's role encompasses protecting investors, maintaining market fairness, and facilitating capital formation.
  3. Increased SEC regulations may unintentionally benefit large players, making it crucial to close loopholes accessible only to wealthy investors.

Coin Metrics’ State of the Network: Issue 217

Coin Metrics' State of the Network • 0 implied HN points • 25 Jul 23
đź”® Crypto Securities
  1. Determining which cryptocurrencies are considered securities remains a complex and critical issue in the evolving regulatory landscape.
  2. On-chain metrics provide valuable insights but are not the sole criteria for classifying assets as securities.
  3. Clear securities regulations could bring transparency and compliance measurements to the crypto industry, with on-chain data playing a potentially crucial role.

The Bailout

Musings on Markets • 0 implied HN points • 25 Sep 08
đź’° Finance Securities
  1. The $700 billion price tag for the bailout might not be the final cost. If people pay their mortgages, the government could actually make money, but if not, it could be more expensive.
  2. It's important to buy the mortgage-backed securities at fair value. This means paying what they are actually worth, not just their face value, to make sure taxpayers get something in return.
  3. Blaming just the bankers for the crisis isn't fair. Many homeowners also benefitted from the housing boom, and we need a better regulatory system to handle risky assets more effectively.

Coin Metrics’ State of the Network: Issue 216

Coin Metrics' State of the Network • 0 implied HN points • 18 Jul 23
đź”® Crypto Securities
  1. A milestone ruling favored Ripple Labs Inc. in its case with the SEC regarding the XRP token.
  2. The market reacted strongly to the ruling, with XRP price surging and U.S. exchanges re-listing XRP for trading.
  3. The ruling highlights the complexities of applying securities laws to digital assets and the ongoing battle between the crypto industry and regulators.

I. What happened?

Musings on Markets • 0 implied HN points • 26 Sep 08
đź’° Finance Securities
  1. Housing prices rose dramatically from 2002 to 2007, which contributed to a risky financial environment. Many people thought these prices would keep going up, leading to poor investment decisions.
  2. Mortgage backed securities were created from bundled mortgages, making them complex and risky. Investors misjudged the risk involved, especially in the riskier parts of these securities.
  3. When housing prices started to drop, it caused big losses for financial firms holding these risky investments. This set off a chain reaction of liquidity issues and major market failures.

The Goldman indictment

Musings on Markets • 0 implied HN points • 30 Apr 10
đź’° Finance Securities
  1. Goldman Sachs faced an indictment over their Abacus deal, which lost billions during the housing crisis. This case highlights issues of selective prosecution and the role of investment banks in selling risky products.
  2. The SEC argued that Goldman misled investors by not revealing that a hedge fund was selling the securities. However, it's debated whether the identity of the seller really mattered to the buyers.
  3. Goldman's actions might have seemed unprofessional, but exploiting information gaps in trading isn’t illegal. It's important to recognize that all trading involves risks, and buyers should research before purchasing securities.