How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
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Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#2Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#3How have the people who bought the debt done?
Were the purchasers assuming that Musk's involvement in government would improve conditions for owning that debt?
Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#4How have the people who bought the debt done? Were the purchasers assuming that Musk's involvement in government would improve conditions for owning that debt?
First tranche sold at 93c to the dollar; second sold at 98c to the dollar, with a surprise from X which covered the 2c loss, so essentially dollar for dollar.
Morgan Stanley and Bank of America came out on top of this trade. Musk's government involvement was not known with any certainty when he bought X.
Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#5How have the people who bought the debt done? Were the purchasers assuming that Musk's involvement in government would improve conditions for owning that debt?
I don't think they were "assuming" but rather betting on a win by republicans.
"Morgan Stanley held the lenders together, betting on the relationship of one of its then top bankers — Michael Grimes — and his client Musk, people familiar with the matter said. The bank led weekly calls to update the other lenders on X’s performance. Working together as a bloc helped avoid one single bank abruptly selling the debt at a discount."
Sounds like... collusion.
Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#6How have the people who bought the debt done? Were the purchasers assuming that Musk's involvement in government would improve conditions for owning that debt?
First tranche sold at 93c to the dollar; second sold at 98c to the dollar, with a surprise from X which covered the 2c loss, so essentially dollar for dollar. Morgan Stanley and Bank of America came out on top of this trade. Musk's government involvement was not known with any certainty when he bought X.
I mean the people who bought later. Not at the time Musk initially financed.
Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#7How is all of this not a crime?
Re: How Wall Street offloaded $13B of debt tied to Elon Musk's Twitter deal
#8How is all of this not a crime?
Which part exactly?