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by the_evacuator 3196 days ago
I'll give you one thing: the assets of the company are pledged to the senior bond holders, but then after the bonds are sold the PE company generally disposes of the assets, leaving nothing backing the senior debt.

The junior debt, of course, has nothing pledged to back it at all. Junior debt in leveraged buyouts is pure gambling.

1 comments

This is in the territory of not even wrong