Are higher interest rates just a phase, or are we officially in our "higher for longer" era? In this episode of Alternative Investments Chat, Erin and Erica tackle the question of living rent-free in every investor's head. A couple of years ago, everyone thought rising rates were a quick detour, but today there’s a plot twist: borrowing is still expensive.

We'll start with cash and T-bills, actually earning real yield again. Then we'll explain what a T-bill ladder is and why it's an emotionally supportive financial strategy.

Once investors earn 4-5% in T-bills, the next thought is inevitable: "Can I get more?" That's where private credit comes in. We break down SOFR, floating-rate loans, and why private credit is having a major moment. We'll also tackle defaults and what “shadow defaults” look like for organizations and private investors alike.

Listen to Learn:

• Why cash finally pulls its weight

• What a T-bill ladder is and how it keeps you liquid while benefiting from higher rates

• How SOFR and floating-rate coupons work in private credit

• The difference between defaults and "shadow defaults" and red flags to watch for

• Why private credit is "helicopter investing," not passive income

• How to build a financial lasagna: T-bills as your base, private credit as your income-enhancing layer

• Why "higher for longer" means you should get intentional

This episode is perfect for anyone wondering what to do with their cash in 2026, investors curious about private credit, and anyone who wants to stop using a Magic 8-Ball to predict rate cuts. Be sure to follow, subscribe, and turn on notifications; let us know in the comments where you're stashing your cash these days!

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