Money Stuff: The Podcast · Friday, August 14, 2026
Boaz Weinstein argues that BDCs and interval funds have over-promised liquidity to investors, especially during times of market stress. He explains that while funds might offer 5% quarterly redemptions, a significant sell-off can lead to investors waiting years to access their money, a reality he believes retail investors may not fully grasp.
“You have fire insurance in a cell off that you can get out, but it doesn't work if there's actually a fire.”
“Yes, here's what I think over promised is. And maybe the docs even say this, but to say in a large cell off or in some scenarios where there's a lot of fear, it's going to take you potentially years to get your money back, you know, like where we say you know you have those long disclaimers and then you actually say no assurance can be made that an entire investment won't be lost, and you're like, really, like, we're going to lose one hundred.”
“The retail investor, I don't believe understood that the liquidity of the underlying does not at all match the liquidity of their investment.”