Re:Lambda School lays off 65 employees
by nrmitchi on Friday April 30, 2021 @04:46PM
(#26999085)
If they are in that position, you're right.
But that goes hand-in-hand with the aligned outcomes; it's best for Lambda if these people get good jobs afterwards, because they're more likely to pay the ISA in full.
If they don't, they're less likely, the risk is higher, and the ISA is worth less (to the investor).
The potential for bankrupcy is also a risk, which lowers the yield. Removing the risk of bankrupcy heightens it.
We could argue about the magnitute of these risks all day; I'm sure people significantly better at math than I am have done a lot of work here.
But that goes hand-in-hand with the aligned outcomes; it's best for Lambda if these people get good jobs afterwards, because they're more likely to pay the ISA in full.
If they don't, they're less likely, the risk is higher, and the ISA is worth less (to the investor).
The potential for bankrupcy is also a risk, which lowers the yield. Removing the risk of bankrupcy heightens it.
We could argue about the magnitute of these risks all day; I'm sure people significantly better at math than I am have done a lot of work here.