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by spwa4
2 hours ago
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If you mean that taking out any kind of debt is fundamentally a bet that whatever is being put up as collateral will grow faster than the interest rate? Because if it doesn't the risk that suddenly debt holders control you grows by a lot. Yes, absolutely. So, applied to GOOG, Alphabet Management is betting they will grow more than 4.5% per year at least until 2030. There is also some weirdness, like Alphabet making a 500 million USD bet short term USD interest rates will be lower than 4% over the 2025-2028 period. |
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