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A comment on Musk announces funding secured for Twitter buy. Parent comment

Re:Musk announces funding secured for Twitter buy by alecbz on Thursday April 21, 2022 @01:42PM (#31112703)
Ok that makes sense, but I thought his other loan from MS was also using his stock as collateral?

If you're MS, why would you want to treat stock as "normal" collateral instead of using a margin loan? Is that Elon only feels comfortable using so much of his stock for a margin loan, and wants to use the rest as "normal" collateral (but is then getting less favorable terms for it)?

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Re:Musk announces funding secured for Twitter buy by HWR_14 on Thursday April 21, 2022 @05:29PM (#31115422)
I have no idea why MS would choose to mix-and-match. Maybe the margin department has a global limit and that's hit by giving most of it to Musk? Maybe the margin department only covers the amount of Musk's stock they think they can sell in a margin call without causing the stock to tank? Maybe the other loan was using SpaceX stock (margin would only apply to public stock)?

It's also possible that Elon is getting a lower rate for the non-margin loan, but at a much worse multiple (putting up far more shares as collateral).

But that's all making stuff up.

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