I wonder if Musk will buy the loans.
Wall Street banks prepare to sell up to $3B in X loans next week
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Re: Wall Street banks prepare to sell up to $3B in X loans next week
#12I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
Does the value of a company matter for their bonds?
As I understand it, Twitter is breaking even given all expenses, which means that they should not have problems paying back their debt. In which case, the investment seems solid. If we were talking stocks, I would understand it.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#13I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
These loans have nothing to do with twitters value though. The question is will musk pay the debt off, not whether twitter will become more valuable. Right after the deal was done investors wondered musk might just let the loans default and give twitter to his creditors, but now that it seems so important to him politically he is less likely to do that.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#14I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
"$34B is a steep price to kill Twitter, but maybe it's worth it", a somebody wrote back in the day. Apparently it sort of was worth it for Musk, but it cost him, and is going to cost further down the line.
I mean, this might've made sense if he was killing it fast... but He's killing it with enough time for it to come back as bluesky.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#15I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
Does the value of a company matter for their bonds? As I understand it, Twitter is breaking even given all expenses, which means that they should not have problems paying back their debt. In which case, the investment seems solid. If we were talking stocks, I would understand it.
> As I understand it, Twitter is breaking even given all expenses
What I've heard is the opposite, that the cost of servicing interest on the loans they now have exceeds 100% of their total revenue.
(Not profit, revenue: even if they cut absolutely every other cost to zero they'd still be losing money).
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#16I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
> it feels like an all-round bad decision.
Eh, he bought the White House for $40bn. I say that's a very good purchase, given how he can now leverage it to get better deals for his business. E.g. Greenland for resources to make batteries.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#17Anyone buying at a 5% discount is torching money
Maybe so, but I think the loans being sold have extra levels of credit protection and the banks are keeping subordinated tranches.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#18I’d pay no more than 30 cents on the dollar.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#19I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
Does the value of a company matter for their bonds? As I understand it, Twitter is breaking even given all expenses, which means that they should not have problems paying back their debt. In which case, the investment seems solid. If we were talking stocks, I would understand it.
If they aren’t growing, and barely breaking even, the chances of going into the red are not low. Idk if the bonds have a rating but I don’t think X would have a AAA rating right now?
If it’s really worth 95%, it’s only held up by the political situation and investors’ general Elon bubble.
Re: Wall Street banks prepare to sell up to $3B in X loans next week
#20I wonder who's going to be buying, since they're selling at just a 5% discount. Since the purchase, Twitter has lost 85% to 90% of its revenues. So, I think the discount doesn't factor in just how much value X has lost. And, unless Musk buys back the debt, I don't see any takers lining up. Judging by how much stock Elon had to sell, plus the loans/equity raised for the initial purchase, it feels like an all-round bad…
> Since the purchase, Twitter has lost 85% to 90% of its revenues.
Source? Is this true?