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Why are they low risk? There is a significantly higher chance of meta defaulting than us govt on a 40 year horizon. Also wouldn't higher interest rates be bene
by nafey 3y ago
Why are they low risk? There is a significantly higher chance of meta defaulting than us govt on a 40 year horizon.
Also wouldn't higher interest rates be beneficial for Meta (and worse for lenders) because Meta will be able to lock in the comparatively lower interest rates now for the next 40 years?
- slashdev 3y agoHigher interest rates in the future are good for Meta, bad for people holding the long duration bonds. And visa versa. Meta bonds would have a very high rating, and a very low risk of default. Not as good as bonds from Apple or Microsoft, but better than most corporate paper. I wouldn’t want to hold them for 40 years though. My personal view is meta is the tech giant least likely to remain a going concern.