Experimental opinion: Digital Credit buybacks are not that effective. For example, say a Digital Credit instrument yields 1% at its $100 par price, with $1 billion outstanding. You could buy back $999 million of it. The next day, it is still highly unlikely that the remaining $1 million would trade at $100 or higher. Why would someone bid $100 when they can earn more than 3% in T-bills, money market funds, or a high-yield savings account? Digital Credit carries additional risk, so buyers would likely demand an even higher yield. When you buy Digital Credit, you are buying a variable income stream. Its future payments can change, and the price reflects what buyers expect those payments to be. In that sense, the price is the yield, and the yield is the price. Adjust the yield, and the price should adjust, all else equal. Buybacks may support the price while they’re happening, but reducing supply may have little lasting effect once the buying stops.