> These companies have valuations
By the time we're reading headlines about this debt, it has been known to institutional investors for a long time.
The debt is priced into the valuation.
Ooh look! “The x is priced in”! My favourite financial thought terminating cliche!
No need to worry or discuss further, it’s all priced in! Everything’s totally fine!!
There was an article on Hacker News just the other day explaining that no one knows what the value of these used GPUs are going to be and that people underwriting are just, essentially, just guessing.
Here is the link (oddly I could not find it with HN Search): https://news.ycombinator.com/item?id=48917135