I’d think there is upside to the stock speculation vs the loan interest rate. You can also default on the loan should the downside get realized. The other less

I’d think there is upside to the stock speculation vs the loan interest rate. You can also default on the loan should the downside get realized. The other less obvious option afforded with leverage is that with the stock assets he can probably secure other leveraged items against it (real estate, other investments etc). The reality of this behavior is that free capital/cash should be looked at as fuel for growth. To judge the financial merit of this you have to wonder why WeWork could not have made more than 2.98% on that capital. I could be missing something, any finance folks please correct me if I’m viewing this wrong or incomplete.