Quant Framework for Digital Credit Risk
Abstract Digital credit instruments—exchange-listed, perpetual preferred shares backed by Bitcoin-heavy corporate treasuries (e.g., STRC, SATA)—have grown rapidly, yet traditional risk models rely on subjective statistical assumptions. This paper introduces an objective, quantitative framework that decomposes digital credit yield into three components: the risk-free rate, the market-implied cost of hedging Bitcoin price risk, and a residual […]