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If shipping operated at negative profit margin, how did it continue to run (until the pandemic)? I don't think it was a sexy sector that could just burn through
by Denvercoder9 5y ago
If shipping operated at negative profit margin, how did it continue to run (until the pandemic)? I don't think it was a sexy sector that could just burn through venture capital money.
- mikeyouse 5y agoEven better than VC -- tons of cheap debt. Hanjin had something like $250M in real assets and $10 Billion in debt when it collapsed.
- deleted 5y ago[deleted]
- pas 5y agoSee also from Matt Levine: " For some reason this sort of “death-spiral financing” — issuing more and more shares at lower and lower prices — seems popular in the shipping industry; DryShips Inc. is a famous example."