| |
| ▲ | AnimalMuppet an hour ago | parent | next [-] | | OK, wait a minute. Elsewhere in this discussion, people are saying that only a few of these AI companies are going to survive. For stocks, that can still be a reasonable investment - low odds, but still a positive expectation value - but for bonds, it's terrible. You're paying me single-digit interest when there's only a 20% chance that you live long enough to give me my principle back? Get outta here. Literally nobody should be investing in such bonds. | | |
| ▲ | muellero 41 minutes ago | parent [-] | | If big tech bonds are a terrible deal for investors at 8%, then Google or OpenAI is getting a screaming deal by raising debt at that rate. Saying nobody should be investing in these bonds is very similar to saying that big tech should raise more debt. | | |
| ▲ | AnimalMuppet 26 minutes ago | parent [-] | | Yes, they should, if they can. But on the other side, life insurance companies and pension funds should not be buying it. |
|
| |
| ▲ | hvb2 an hour ago | parent | prev [-] | | > buy debt from big tech companies because you believe it's too risky, then you believe that bonds are just too risky in general Uh, no? Ignoring the rating, I think there are plenty of other bonds to be found that are less risky. Dutch government bonds just to name one? The yield wont be the same but that's probably a good indicator? |
|
