Re:Zynga to Put Headquarters Building in San Francisco on th...
by thaumasiotes on Tuesday February 23, 2016 @08:21PM
(#11163777)
> a business is not clearly safer or less safe a credit risk doing the movement described
Yes they are? The reason you're thinking of the building as completely safe wrt to credit risk is that, if the company finds it can't pay the loan on the building, it can sell it and hope to pay the loan that way. But that might not work! In the second scenario, that's already been done, which eliminates the risk of being unable to sell the building for an amount that will cover the loan.
Yes they are? The reason you're thinking of the building as completely safe wrt to credit risk is that, if the company finds it can't pay the loan on the building, it can sell it and hope to pay the loan that way. But that might not work! In the second scenario, that's already been done, which eliminates the risk of being unable to sell the building for an amount that will cover the loan.