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Chamath said he used a $420M credit line and that the assets securing it rapidly…
Brief
Chamath recounted taking a $420M credit line and watching the assets securing it collapse during a market disruption, while also worrying about 'a couple hundred million dollars' he had at Credit Suisse over one weekend. He said he nearly lost everything, vowed never to repeat the move, and co-hosts framed the episode as a cautionary lesson on leverage.
Why it matters
Chamath said he used a $420M credit line and that the assets securing it rapidly fell in value during a market disruption, leaving him scrambling and nearly losing everything.
Key details
- He reported having 'a couple hundred million dollars' at Credit Suisse and spent a weekend verifying those funds as the bank appeared to be imploding; he vowed never to take that level of debt again and invited listeners to 'punch' him if he does.
- Co-host Jason Sacks commented that taking on debt is how 'smart guys go bankrupt,' framing Chamath's experience as a cautionary lesson about leverage.