3 ms·
Why don't they borrow given we're at 0 percent rates?
by fny 7y ago
Why don't they borrow given we're at 0 percent rates?
- rwmj 7y agoI suppose the serious answer is it depends on (a) can businesses borrow at 0% (actually no, not even banks can, the fed rate is not 0). And (b) if they could borrow at 0% what would the term be? The fed rate is only an overnight rate so it requires constant refinancing. If AirBNB could borrow for 20 years at 0% it might make sense, but in terms of how it able to borrow in reality, probably not so much.
- unlinked_dll 7y agoThat's the rate the fed loans to the banks, which can't fail. The banks aren't going to loan AirBNB at a low interest rate when it looks like they're on the edge of insolvency.