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> Without serious infusion of cash there is a notable nonzero change they would fail This is an exaggeration. Many companies purposely have junk bonds so they
by ipsum2 7y ago
> Without serious infusion of cash there is a notable nonzero change they would fail
This is an exaggeration. Many companies purposely have junk bonds so they can borrow more money at a low rate, compared to investment grade bonds.
- A4ET8a8uTh0 7y agoYes. Their purpose is to have funding. Do you think they pay higher interest rates out of the goodness of their hearts? I am not sure what you are arguing here.
- gruez 7y ago>Many companies purposely have junk bonds so they can borrow more money at a low rate, compared to investment grade bonds. What? Conventional wisdom says that risky (junk) bonds would have higher yields (aka costs for the borrower) than safer (investment grade) bonds.