[tomjen3]

Does the value of a company matter for their bonds?

As I understand it, Twitter is breaking even given all expenses, which means that they should not have problems paying back their debt. In which case, the investment seems solid. If we were talking stocks, I would understand it.

[jacobjjacob]

If they aren’t growing, and barely breaking even, the chances of going into the red are not low. Idk if the bonds have a rating but I don’t think X would have a AAA rating right now?

If it’s really worth 95%, it’s only held up by the political situation and investors’ general Elon bubble.

[mminer237]

Bonds do have a rating, but Microsoft is the only AAA corporate bond I know of off the top of my head. Even Amazon is AA, while I would guess Twitter more like AMC at CCC- if it were rated.

[ben_w]

> As I understand it, Twitter is breaking even given all expenses

What I've heard is the opposite, that the cost of servicing interest on the loans they now have exceeds 100% of their total revenue.

(Not profit, revenue: even if they cut absolutely every other cost to zero they'd still be losing money).

[wbl]

Debt is short a put. The shareholders can walk away from a default and you are stuck with whatever the company is worth. So the more enterprise value vs the debt, the safer.