Does pricing affect Digital Credit's ( $STRC and $SATA ) ability to penetrate institutional balance sheets? 85% to 90% of traditional U.S. fixed-income fund mandates explicitly restrict managers to investment grade assets. The typical rate range for investment grade rated credit instruments (AAA / Aaa - BBB / Baa rating) is 5.4% - 6.6%, with an upper limit around 8.5%. An instrument priced at ~7% looks attractive in this universe. Even if an instrument priced at 12%-13% were to somehow get an IG rating, the pricing alone screams hidden risk and invites skepticism. Higher is not necessarily better. One of two paths must likely be taken: 1) Perception of risk associated with the instrument must improve to the point that it looks commensurate with pricing in the target range, bringing the rate down organically. Or, IMO, more likely: 2) The instrument will penetrate institutional balance sheets via structured finance offerings that further strip volatility and risk from the instrument.