| ▲ | Imustaskforhelp 6 hours ago | |
The treasury is having daily rates of 4.56% at 2 year bond and 4.88% at 10 years rate. Yes, Google has a very small risk but still it is a non zero risk that google can bankrupt whereas US govt can physically not bankrupt itself given that it can print the money (there could only be some gridlock within raising the ceiling though but that's true) Also I would argue that Google itself has changed with trillions of dollars spent into AI/Datacenters, it simply can't pivot as well. There is a reason as to why Google is having such high level of interest rate Google isn't stupid and wants to give such high level of interests if not for the amount of risk involved. I dont believe that there's free lunch but also that perhaps this can be a good deal to some and this is gonna push people even more away from the more riskier neoclouds funding and cause their debts to rise in interests rate even more. | ||
| ▲ | Esophagus4 6 hours ago | parent [-] | |
Matt Levine once noticed that Microsoft’s bonds were actually cheaper than Treasuries (during a time of Trump-instigated turbulence). His point was that Microsoft has an interest in maximizing its credit worthiness which necessitated the corporate governance etc, while the administration had an interest in maximizing… other stuff (?) which did not necessitate the same things. [1] https://www.wsj.com/finance/investing/why-microsoft-has-lowe... | ||