Alphabet (Google) launched a massive global bond sale, including a 100-Year Bond.
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Alphabet (Google) launched a massive global bond sale, including a 100-Year Bond.
The last time tech companies offered 100-Year Bonds was, according to Bloomberg,
the dot com boom.
@neurovagrant as usual, Bloomberg can't help themselves. And must omit the facts that are embarrassing.
That century bond in the dot-bomb era?
Motorola, in 1997.
Right as they were cratering from neglecting cellular, struggling in semiconductors, and eating massive losses from Iridium.
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@neurovagrant as usual, Bloomberg can't help themselves. And must omit the facts that are embarrassing.
That century bond in the dot-bomb era?
Motorola, in 1997.
Right as they were cratering from neglecting cellular, struggling in semiconductors, and eating massive losses from Iridium.
@neurovagrant less than 2 years after Motorola issued that bond, a significant portion of which was earmarked for Iridium?
Iridium filed for Chapter 11 bankruptcy for the first time. They had to be bailed out and fire-saled, basically wiping out Motorola's investment. -
@neurovagrant as usual, Bloomberg can't help themselves. And must omit the facts that are embarrassing.
That century bond in the dot-bomb era?
Motorola, in 1997.
Right as they were cratering from neglecting cellular, struggling in semiconductors, and eating massive losses from Iridium.
I'm no finance wizard, but what's even the point of a 100-year corporate bond? Is it just intended to be bought and sold like an option?
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I'm no finance wizard, but what's even the point of a 100-year corporate bond? Is it just intended to be bought and sold like an option?
@alessandro @rootwyrm yeah that's more or less my understanding, but am terrible at finance stuff.
tldr just another investment vehicle to be traded.
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I'm no finance wizard, but what's even the point of a 100-year corporate bond? Is it just intended to be bought and sold like an option?
@alessandro @rootwyrm @neurovagrant A grift? It’s like selling more shares, without the hassle of voting rights, while still raising cash. The value is fixed, and the cost (interest) comes out of operating expenses, without diluting stock price. But the date of expiry is so far in the future, it’s like they can forget about the consequences and accounting burden of redemption.
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@alessandro @rootwyrm @neurovagrant A grift? It’s like selling more shares, without the hassle of voting rights, while still raising cash. The value is fixed, and the cost (interest) comes out of operating expenses, without diluting stock price. But the date of expiry is so far in the future, it’s like they can forget about the consequences and accounting burden of redemption.
@8r3n7 @rootwyrm @neurovagrant
Yeah, I mean from the buyer's POV. The only appeal I can imagine is the prospect of flipping it for a profit ASAP, because obviously nobody is going to hold this for 100 years.
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@8r3n7 @rootwyrm @neurovagrant
Yeah, I mean from the buyer's POV. The only appeal I can imagine is the prospect of flipping it for a profit ASAP, because obviously nobody is going to hold this for 100 years.
@alessandro @8r3n7 @rootwyrm it's the epitome of the IBGYBG deal -
"I'll Be Gone, You'll Be Gone" by the time this deal actually implodes catastrophically.
IBGYBG deals were a hallmark of subprime mortgage security deals in the 00's, leading up to 2008.
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@alessandro @8r3n7 @rootwyrm it's the epitome of the IBGYBG deal -
"I'll Be Gone, You'll Be Gone" by the time this deal actually implodes catastrophically.
IBGYBG deals were a hallmark of subprime mortgage security deals in the 00's, leading up to 2008.
@neurovagrant @8r3n7 @rootwyrm
This is even worse, at least CDOs had underlying assets...
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@alessandro @8r3n7 @rootwyrm it's the epitome of the IBGYBG deal -
"I'll Be Gone, You'll Be Gone" by the time this deal actually implodes catastrophically.
IBGYBG deals were a hallmark of subprime mortgage security deals in the 00's, leading up to 2008.
@neurovagrant @alessandro @8r3n7 exactly. It's why it's getting an "AAA" rating, as though it were as good as a government bond. And it's being done in multiple currencies but primarily sterling.
The sold purpose is for the London financial sector to pump and dump it. -
@neurovagrant less than 2 years after Motorola issued that bond, a significant portion of which was earmarked for Iridium?
Iridium filed for Chapter 11 bankruptcy for the first time. They had to be bailed out and fire-saled, basically wiping out Motorola's investment.@rootwyrm @neurovagrant Oh man, when Google has to file for chapter 11 and fire-sale all of these assets, the flood of cheap enterprise GPU's that are going to hit the market are going to help me build the sickest racing sim ever.
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@neurovagrant @alessandro @8r3n7 exactly. It's why it's getting an "AAA" rating, as though it were as good as a government bond. And it's being done in multiple currencies but primarily sterling.
The sold purpose is for the London financial sector to pump and dump it.@neurovagrant @alessandro @8r3n7 and legally speaking, bonds do have underlying assets in theory. Bonds are secured creditors. But they're not always first in line in a bankruptcy.
But the whole game here is that Google will sell at a discount to certain firms. Those firms will sell on direct ("a guaranteed investment!") or will repackage with other bonds into increasingly toxic bundles that pension funds load up on as 'stable return' vehicles.
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@rootwyrm @neurovagrant Oh man, when Google has to file for chapter 11 and fire-sale all of these assets, the flood of cheap enterprise GPU's that are going to hit the market are going to help me build the sickest racing sim ever.
@Mustardfacial @neurovagrant why wait? Mind, they have no graphics output, no real render capability at all even though it's mostly just fused off. But you can buy them for literal pennies on the dollar right now. 94%+ depreciation in 18 months and the secondary is flooded with burned up parts.
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@Mustardfacial @neurovagrant why wait? Mind, they have no graphics output, no real render capability at all even though it's mostly just fused off. But you can buy them for literal pennies on the dollar right now. 94%+ depreciation in 18 months and the secondary is flooded with burned up parts.
@rootwyrm @neurovagrant Unless they've dramatically changed the architecture of the enterprise cards from the last time I interacted with one (which granted was the A6000 series) when there were variants that had mini-DP out, and the physical chips were basically the same as the RTX cards with driver locks to prevent gaming workloads, then it shouldn't be that hard to make work. There are hacked drivers out there that let them play games again.
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@rootwyrm @neurovagrant Unless they've dramatically changed the architecture of the enterprise cards from the last time I interacted with one (which granted was the A6000 series) when there were variants that had mini-DP out, and the physical chips were basically the same as the RTX cards with driver locks to prevent gaming workloads, then it shouldn't be that hard to make work. There are hacked drivers out there that let them play games again.
@Mustardfacial @neurovagrant absolutely not, at all. NV started down the disabling of the render in the mining era. Even the Chinese hack cards have no output. A100's cannot render. V100's cannot render. There's just no silicon or traces for it.
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@Mustardfacial @neurovagrant absolutely not, at all. NV started down the disabling of the render in the mining era. Even the Chinese hack cards have no output. A100's cannot render. V100's cannot render. There's just no silicon or traces for it.
@rootwyrm @neurovagrant Aw crap. Well there goes that plan.
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