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The loan will be cheap but not free. The problem with shares is that their price can go down to zero in case of company bankruptcy. So there will be premium for
by double_nan 5y ago
The loan will be cheap but not free. The problem with shares is that their price can go down to zero in case of company bankruptcy. So there will be premium for that risk.
- darawk 5y agoNot really. His loan will be way way way way over-collateralized, and like I said, he can even hedge it perfectly. His cost will likely be about the RFR.