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And the more interesting use case is that it’s a billion dollar 0% loan Maybe this would have been exciting a decade or two ago before interest rates dropped s
by harryh 7y ago
And the more interesting use case is that it’s a billion dollar 0% loan
Maybe this would have been exciting a decade or two ago before interest rates dropped so far. Now Startbucks can issue all the debt it wants for...checks notes...about 2.3%.
- tempsy 7y agoOk. That is still more than 0. And it will continue to be 0 whether interest rates rise or fall in the future. And you missed the other point about how they actually move gift card liabilities to assets after a certain about of time because people forget about balances, so it’s actually negative. I think it’s a bit naive to think that holding $1.6b in balances is not useful or meaningful to Starbucks or a company hoping to emulate their mobile wallet success.