According to a Wall Street Journal report, banks that loaned Elon Musk $13 billion to buy Twitter haven’t been able to sell the debt.
- rem26_art ( @rem26_art@fedia.io ) 27•28 days ago
the ability for institutions like that to sell debt has always been wild to me. Like, can i sell my debt? Please?
- Darkassassin07 ( @Darkassassin07@lemmy.ca ) English22•28 days ago
It’s not money they owe, but money owed to them; backed by some form of contract. Your credit card contract for example.
Person A owes person B money, let’s say $100. Person B sells that debt to Person C for $80.
Person A still owes the same $100, just to a different person.
Person B gets paid now instead of waiting for Person A to pay up, but lost $20 on the deal.
Person C invested $80, hopefully gets paid the full $100, not having to chase down a delinquent debtor, and profits $20 out of the deal.
Nobody wants to be person C when it comes to the Debt Twitter owes.
If you had someone that owed you money (or anything else really), you could sell that debt, assuming you can find a buyer for it. Banks just do this on a much larger scale than $100 at a time.
- bizarroland ( @bizarroland@fedia.io ) 17•28 days ago
Yes you can sell your debt as a consumer. People do it all of the time.
However, the terminology is different.
We call it “taking out a loan”.
- taanegl ( @taanegl@beehaw.org ) 19•28 days ago
Might be? This is the worst investment they ever made, and they know it, mostly because they’ve speaking publicly like this, because usually they bury the lead - to protect their other investments.
International financiers are really the worst.
- BearOfaTime ( @BearOfaTime@lemm.ee ) English4•28 days ago
I’m just loving watching it though.