Re:Don't Lower Your Expectations
by micahbright on Sunday July 09, 2017 @12:03AM
(#14728299)
Boeing has more incentive than the bank. Boeing's profit is likely much higher than the interest on the deal. That's probably just the cherry on top. The bank stands to lose the entire principal.
Sure, they can repossess the aircraft if I default, but that's going to cost them a lot more than $10M by the time the dust settles. On the surface, this is really a story of arbitrage, where Branson successfully leveraged Boeing's recklessness against a bank's cowardice.