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👋 Welcome to Capital Dispatch
Your edge in a world drowning in financial noise.
Every week, we cut through the chaos of global markets, economic shifts, and financial trends and deliver what actually matters, in plain English. Whether you're just starting your financial journey or trying to make smarter decisions with your money, this newsletter is your weekly briefing, your cheat sheet, and your competitive edge.
No jargon. No fluff. Just the insights that move the needle.
Let's build your financial intelligence one issue at a time.
🌍 Market snapshot
America is borrowing $166 billion every single month. The world is starting to notice.
The US national debt has hit $38.5 trillion. Interest payments alone now exceed $1 trillion a year more than the entire US defence budget. Here's what that means for the dollar, markets, and your money.
Q1 2026: $20.8B in BDC Redemption Requests. 0.44% Lifetime Net Loss Rate on Percent.
In Q1 2026, the non-traded BDC market hit $20.8B in redemption requests — most investors received roughly half of what they asked for. Moody's revised the U.S. BDC sector outlook to Negative. Investors who thought they owned liquid private credit found out their fund manager decided whether they could get out.
On Percent's marketplace that same quarter: new issuances, scheduled payments, and a 0.44% lifetime net loss rate on asset-based deals that's held since inception.†
The difference is structural. BDCs often own concentrated corporate loans with quarterly redemption windows that close at the manager's discretion. Percent finances specialty lenders against pools of performing receivables — diversified, overcollateralized, short duration.
Track record through 3/31/26:†
14.6% net ABS returns LTM after losses
0.44% lifetime net loss rate since inception (asset-based deals)
$1.62B+ in ABS originations
870+ offerings completed
Deal terms 6–24 months · Starting at $500
Alternative investments are speculative. No assurance can be given that investors will receive a return of their capital. Secondary market transactions are subject to availability and issuer approval; liquidity is not guaranteed. †Past performance is not indicative of future results. Terms apply.
🏛️ The Big Story
Imagine spending $166 billion more than you earn — every single month. That's what the United States government is doing right now. In 2026, America is projected to run a $2.1 trillion deficit — meaning it will spend $2.1 trillion more than it collects in taxes. To cover the gap, the US Treasury borrows money by selling bonds. And the bill for all that borrowing? A staggering $1.2 trillion in annual interest payments alone — more than the US spends on its entire military.
For beginners, here's the simplest way to understand it: the US government has a massive credit card — and the minimum payment is now so large it's crowding out everything else.
How did it get this bad? In 2001, the US national debt was $5.8 trillion — about 55% of GDP. Today it's $38.5 trillion, over 120% of GDP. Wars, the 2008 financial crisis, COVID-19 stimulus, tax cuts, and years of unchecked spending all piled on. The Congressional Budget Office now projects the US will add another $25 trillion to its debt over the next decade — with $16 trillion of that going purely toward interest payments.
The scary math: By 2036, interest payments, Social Security, Medicare, and Medicaid are projected to consume 100% of federal revenues. That means zero dollars left for roads, schools, defence, or anything else. Everything would be borrowed. The Cato Institute calls this "fiscal dominance" — when debt becomes so overwhelming that the Federal Reserve is forced to print money to finance the government rather than control inflation.
What about the dollar? Here's where it gets interesting. The US dollar is the world's reserve currency — meaning most global trade, debt, and oil contracts are priced in dollars. This gives America an extraordinary privilege: it can borrow almost unlimited amounts because the world always needs dollars. But that privilege is being quietly tested. The dollar fell more than 10% against a basket of currencies since the start of 2025 — its worst performance since the 1973 oil crisis. Gold is surging as a rival store of value. Central banks are buying gold and quietly diversifying away from the dollar.
But don't panic yet. Despite all the doom, the dollar is still irreplaceable. In 2025, foreign investors bought a record $1.6 trillion of long-term US financial assets. When crises hit, markets still rush to buy dollars — not euros, not yuan, not rupees. The dollar's dominance is diluted, not destroyed. The real risk is a slow erosion of confidence over years, not a sudden overnight collapse.
Numbers to know
$38.5 trillion — The US national debt as of early 2026, up from just $5.8 trillion in 2001. That's a 563% increase in 25 years.
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$1.2 trillion — Annual interest payments on the US debt in 2026 — more than America spends on defence, and growing every month.
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−10% — How much the US Dollar Index (DXY) has fallen since the start of 2025, its worst performance since the 1973 oil crisis.
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$25 trillion — Additional debt the US is projected to accumulate over the next decade, with $16 trillion going purely to interest payments.
🔑 Your takeaway
What this means for you
The US debt crisis is not a distant problem — it's already affecting you. Higher US borrowing costs mean higher global interest rates, a weaker dollar means your imports get more expensive, and eroding confidence in American fiscal discipline means more market volatility worldwide. For investors, the message is clear: diversify. Don't keep all your financial eggs in one currency or one market. Gold, international equities, and assets in growing economies like India are all worth understanding. The dollar isn't dying — but the era of trusting it blindly is quietly coming to an end.
