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Who is giving out these massive, high-risk loans?
by imbusy111 4y ago
Who is giving out these massive, high-risk loans?
- laweijfmvo 4y agoBanks that got free money from the Fed and can longer get massive returns in the stock market?
- danielmarkbruce 4y agoThey have to pay back any loans. They aren't free.
- danielmarkbruce 4y agoBanks have been doing LBO financing for decades at this point. They get paid for the risk, and mostly know what they are doing.
- 93po 4y agoHow did you calculate the level of risk for this loan?
- rad88 4y ago$1B+ interest payments but no market for the debt. It is as of now a massive high-risk loan (though perhaps it wasn't in April).
- beeboop 4y agoIs an interest payment on a load only reflecting the risk of it and nothing else? What's the balance between the risk and other factors? What do rates usually look like on loans used for this purpose? What is risky about the situation at hand from the lender's perspective? What is the scenario in which the lender isn't made whole?