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No worries, another PE firm will come along to bail them out by issuing more debt and of course paying themselves a dividend. Rinse, repeat.
by ralph84 6y ago
No worries, another PE firm will come along to bail them out by issuing more debt and of course paying themselves a dividend. Rinse, repeat.
- PeterisP 6y agoWell, if the lending institutions want to take on that debt, even if it would result in it being paid out in dividend and not recoverable in a bankruptcy, that's probably their right to do so - it's the lender's money to risk as they want in hopes of profit.
- ralph84 6y agoThe biggest lending institution in the junk bond market is now the federal reserve, so traditional notions of risk and profit are out the window.