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> why is that having such a massive impact so quickly on these companies to the point where, the cost to service NEW debt (not existing) rises? It's because a
by Conan_Kudo 4y ago
> why is that having such a massive impact so quickly on these companies to the point where, the cost to service NEW debt (not existing) rises?
It's because a lot of tech companies have built their financial management on regularly refinancing and getting new cash through the debt market to keep things going, rather than minimizing the usage of debt markets for cash generation.
- MuffinFlavored 4y agoI don't think we have any proof that a company as profitable and large as Microsoft, based on their financial reports, is using cheap short term debt to finance projects (payroll expenses included)/accelerate growth? Or are they?