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Wall Street banks prepare to sell up to $3B in X loans next week

reuters.com

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Re: Wall Street banks prepare to sell up to $3B in X loans next week

#111

Post by rsynnott »

breadwinner wrote: post #105
OnlineGladiator wrote: post #90

Earlier quoted context omitted.

There is a difference between "wow my CEO really sucks" and "wow my CEO had another kid with an employee, regularly talks about the importance of breaking labor laws, shows up to work visibly high on a regular basis, and enjoys making racist comments about Apartheid."

Why do you think this sticker [1] is so popular? It is because prior to Twitter acquisition, despite some blemishes, most people thought Elon Musk is a smart but otherwise normal person. Most of the things you mentioned came later. [1] https://www.amazon.com/s?k=bought+this+before+elon+went+craz...

Most people were _not paying attention_, until the Twitter thing made it impossible to ignore. But there was all sorts of unhinged behaviour for years before.

Re: Wall Street banks prepare to sell up to $3B in X loans next week

#112

Post by rsynnott »

mamonster wrote: post #44
bdangubic wrote: post #28

Earlier quoted context omitted.

can you explain this in with little more detail for us not familiar with this? :)

Slight simplification: Bonds aren't like stocks. For a given company, there is typically 1 common stock issue(perhaps multiple share classes FAANG-style for voting or maybe issued on different exchanges), maybe a preferred issue and then like 10+ different types of bonds, which are very different(typically, the shittier the company's financial position the bigger the difference between the senior/secured and the juni…

_Some_ stocks, typically in private VC-funded companies, are like this too, FWIW.

Re: Wall Street banks prepare to sell up to $3B in X loans next week

#113

Post by rsynnott »

churchill wrote: post #2

I 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…

They seem to be only selling senior debt, which is _somewhat_ less risky (when a company is wound up, senior debt gets paid first) and hanging onto the junior debt.

Re: Wall Street banks prepare to sell up to $3B in X loans next week

#114

Post by rsynnott »

bdangubic wrote: post #32
nine_k wrote: post #10

Earlier quoted context omitted.

"$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.

he bought an office in the white house which he already turned into much more than what he invested in X with 4 more years to come…

I mean, realistically, hard to imagine him lasting 4 years. See the previous Trump term… turnover was… high.

Re: Wall Street banks prepare to sell up to $3B in X loans next week

#115

Post by bdangubic »

rsynnott wrote: post #114
bdangubic wrote: post #32

Earlier quoted context omitted.

he bought an office in the white house which he already turned into much more than what he invested in X with 4 more years to come…

I mean, realistically, hard to imagine him lasting 4 years. See the previous Trump term… turnover was… high.

if you surround yourself with intelligent people (which for the most part he did in both 2016-2020 and now) they will get sick of him soon (we have 78 years of examples of this…) :)
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