News for hackers. Stuff that matters.
Re:AI Companies Are Trying to Hide a Staggering Amount of Debt by FabHK on Thursday July 23, 2026 @05:06PM (#49028047)
FWIW, a firm can go bankrupt and the stocks be worth zero with the bond holders being paid 100%. In fact, that's sort of the goal and "ideal" scenario (ideal given bankruptcy, of course, which in turn is not ideal).

In the real world, recovery rates for corporate bonds are between 30% to 70% or so, depending on the seniority of the debt and the collateral.

There are no comments on this comment yet.