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Linkbait title should be changed, really. There is a massive difference between taking out a loan and issuing a round of debt securities.
by crikli 15y ago
Linkbait title should be changed, really. There is a massive difference between taking out a loan and issuing a round of debt securities.
- asmithmd1 15y agoNo,I think they are exactly the same. When you get a car loan you just issued a "debt security" to whoever gave you the loan.
- dspeyer 15y agoExcept that here Google writes the terms (not just interest, all the fine print) and the investors take them or leave them, whereas in a loan the bank writes them and the borrower takes or leaves them. Not really relevant here, but worth keeping in mind generally.
- orijing 15y agoWhen you are as large as Google, it is the same: The interest you end up paying is whatever is supported by the market. Plus, no individual bank or lender is going to loan any company $3 billion dollars. That's just stupid. The point of the article isn't the particulars of their debt financing, but the fact that they did, despite having so much cash.