SpaceX bond worth 10% less than issue price – heading for junk bond status
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Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#12Good thing there's a strong corporate governance model at SpaceX where the c-suite is fully accountable to an independent board of directors, who could use their majority voting power to remove that c-suite at will. Could you imagine the abuse of power that could happen if one person held over 50% of the voting power at such a company?
Are super shares like Zuckerberg's and Musk a new thing? Genuinely curious if they're a recent invention or something that's quietly happened for a while because it seems like a large inversion of the deal of going public, lose some control of the company in exchange for a large amount of cash but these nonvoting/supervoting share splits seem to completely upend what I understood to be part of the deal for access to…
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#13Cheap capital masked a lot of risk. The current rate environment is exposing it.
These are bonds that were issued a few weeks ago.
yeah, as the article said bond prices have fallen slightly over the time period but this is much more bond buyers seeing increased risk SpaceX isn't going to have the cashflow or ease of further equity raises to pay them back in the long run. (With it being bonds the upside of "but what if SpaceX actually does become bigger than the present US economy" is capped too)
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#14Good thing there's a strong corporate governance model at SpaceX where the c-suite is fully accountable to an independent board of directors, who could use their majority voting power to remove that c-suite at will. Could you imagine the abuse of power that could happen if one person held over 50% of the voting power at such a company?
Are super shares like Zuckerberg's and Musk a new thing? Genuinely curious if they're a recent invention or something that's quietly happened for a while because it seems like a large inversion of the deal of going public, lose some control of the company in exchange for a large amount of cash but these nonvoting/supervoting share splits seem to completely upend what I understood to be part of the deal for access to…
No. Google has them too.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#15I'm impressed with the general public. I thought these guys would get away with their hype train. Nice surprise.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#16Earlier quoted context omitted.
Are super shares like Zuckerberg's and Musk a new thing? Genuinely curious if they're a recent invention or something that's quietly happened for a while because it seems like a large inversion of the deal of going public, lose some control of the company in exchange for a large amount of cash but these nonvoting/supervoting share splits seem to completely upend what I understood to be part of the deal for access to…
No. Google has them too.
That's absolutely still "recent" when discussing corporate governance.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#17I'm impressed with the general public. I thought these guys would get away with their hype train. Nice surprise.
Don't worry, they made plenty with the pump-and-dump.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#18Earlier quoted context omitted.
Are super shares like Zuckerberg's and Musk a new thing? Genuinely curious if they're a recent invention or something that's quietly happened for a while because it seems like a large inversion of the deal of going public, lose some control of the company in exchange for a large amount of cash but these nonvoting/supervoting share splits seem to completely upend what I understood to be part of the deal for access to…
No. Google has them too.
Google is also pretty new in the terms I was talking about only slightly older than Facebook. I mean going back to the 80s/90s or earlier, pre current FAANG at least.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#19I'm impressed with the general public. I thought these guys would get away with their hype train. Nice surprise.
A much larger percentage of bond traders are institutional, compared to equities, where retail is very active in some names.
So I wouldn't really give too many points to "the general public" for this one.
Re: SpaceX bond worth 10% less than issue price – heading for junk bond status
#20Earlier quoted context omitted.
Are super shares like Zuckerberg's and Musk a new thing? Genuinely curious if they're a recent invention or something that's quietly happened for a while because it seems like a large inversion of the deal of going public, lose some control of the company in exchange for a large amount of cash but these nonvoting/supervoting share splits seem to completely upend what I understood to be part of the deal for access to…
https://en.wikipedia.org/wiki/Ivar_Kreuger#B-shares
> Kreuger's financial empire has been described by one biographer as a Ponzi scheme... Another biographer called Kreuger a "genius and swindler", and John Kenneth Galbraith wrote that he was the "Leonardo of larcenists".