Previous thread on Aug 8, 2015 https://news.ycombinator.com/item?id=10027893 https://news.ycombinator.com/item?id=10027893 Notable comments: > Your downside

Previous thread on Aug 8, 2015 https://news.ycombinator.com/item?id=10027893 https://news.ycombinator.com/item?id=10027893 Notable comments: > Your downside risk remains the same (lose loaned money), but your upside gains increase substantially (interest vs interest+acquisition/ipo income). Thus the risk becomes more tolerable. > The warrants are stock options - free to be given. SVB is not paying for them. It increases their potential upside beyond the interest rate. Across a portfolio it makes up for defaults.