After a while they just get too big to do it. But that's ok. As long as someone is willing to buy the bonds, there's nothing wrong with shuffling the capital

After a while they just get too big to do it. But that's ok. As long as someone is willing to buy the bonds, there's nothing wrong with shuffling the capital structure. In theory, some people need fixed income instruments (say insurance companies) so there is a market for it. If the people with risk capital want to place it on smaller more innovative companies, why not?