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I can't explain why this is so fascinating to me. Thanks for the great responses, I really appreciate it. I have no background knowledge of "mega loans" - what

by nyjah 5y ago

I can't explain why this is so fascinating to me. Thanks for the great responses, I really appreciate it. I have no background knowledge of "mega loans" - what a fascinating concept. And I didn't realize that would evolve into bonds that will get purchased as investments for insurance and retirement type funds. That makes a lot of sense. Feel free to let this be, you've answered my initial question and more, but I am gonna rattle off a few follow ups. Its unlikely one bank will make the complete loan, is it also impossible? As in, does 1 bank have that kind of money to put up? And what percentage of the loan do you think the service fees will be? Probably in the millions, but not a billion or billions? How common is a mega loan? These are minor follow ups, if you have any input great, if not all good too, I'm going to try to find some more info on the web and read some stuff. Genuinely appreciate the great responses.

WheelsAtLarge 5y ago
I find it interesting too. I guess it's the idea of all that money moving around and how it's done. "mega loan" is my term. I just didn't have any other term for the super super large loans. 'Its unlikely one bank will make the complete loan, is it also impossible?" Don't really know but any one bank that would make a loan that size would carry too much risk and would have to answer to someone on why they would make the loan and take such risk. "And what percentage of the loan do you think the service fees will be?" I've heard of 1-3% for a $100 million loan. For $43B it would be less but it would be negotiated. I bet Musk would fight for every dollar. "How common is a mega loan?" These type of loans are few and rare and there are only a handful of companies that can arrange them. Morgan Stanley is advising Musk. Here's an article I read regarding who he picked. https://www.bloomberg.com/news/articles/2022-04-14/goldman-sachs-morgan-stanley-face-off-on-musk-bid-for-twitter https://www.bloomberg.com/news/articles/2022-04-14/goldman-s...

by nyjah 5y ago

WheelsAtLarge 5y ago

I find it interesting too. I guess it's the idea of all that money moving around and how it's done. "mega loan" is my term. I just didn't have any other term for the super super large loans. 'Its unlikely one bank will make the complete loan, is it also impossible?" Don't really know but any one bank that would make a loan that size would carry too much risk and would have to answer to someone on why they would make the loan and take such risk. "And what percentage of the loan do you think the service fees will be?" I've heard of 1-3% for a $100 million loan. For $43B it would be less but it would be negotiated. I bet Musk would fight for every dollar. "How common is a mega loan?" These type of loans are few and rare and there are only a handful of companies that can arrange them. Morgan Stanley is advising Musk. Here's an article I read regarding who he picked. https://www.bloomberg.com/news/articles/2022-04-14/goldman-sachs-morgan-stanley-face-off-on-musk-bid-for-twitter https://www.bloomberg.com/news/articles/2022-04-14/goldman-s...