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Sorry, but you have no idea what you're talking about. There's no way debt from a leveraged buyout is going to be rated anywhere close to AAA. The leveraged buy
by Aunche 3y ago
Sorry, but you have no idea what you're talking about. There's no way debt from a leveraged buyout is going to be rated anywhere close to AAA. The leveraged buyouts of Twitter and Toy's R Us were funded by junk bonds.
https://www.bloomberg.com/news/articles/2022-10-31/twitter-s-credit-grade-cut-by-moody-s-following-leveraged-buyout#:~:text=The%20credit%20rating%20company%20cut,weakening%20of%20other%20credit%20metrics https://www.bloomberg.com/news/articles/2022-10-31/twitter-s....
https://www.moodys.com/credit-ratings/Toys-R-US-Inc-Old-credit-rating-756700?lang=es-ar&cy=arg https://www.moodys.com/credit-ratings/Toys-R-US-Inc-Old-cred...
- linuxftw 3y agoDon't worry, the banks figured out how to solve this problem decades ago, they're called CBOs: https://thebusinessprofessor.com/en_US/investments-trading-financial-markets/collateralized-bond-obligation https://thebusinessprofessor.com/en_US/investments-trading-f... Basically, you take a bunch of junk, package it up, and like magic, it's investment grade.