I don't understand your position.

First you say you don't like that they're accessing the corporate bond market, which is something all public companies can do.

Then you say they should've IPO'd earlier when they were even earlier stage and riskier .. which would allow them to issue bonds even earlier?

What is your position? Or are you complaining for the sake of complaining?

Its rated as junk.

And if default risk rises, yes the value of those bonds will get crushed. But Id argue the value of equity will be more so - since they are not A) positive EBIT B) EBITDA

Those two numbers are variables that compose measures of default risk.

Calm your panties down. Kroll != S&P.

> Let’s be clear about what this means: it gives them access to the corporate bond market. What they’re lobbying for is that pension funds, life insurance, etc., can take exposure to these companies. Suddenly the everyman, your mom and dad, have significant exposure to these companies and their circular financing deals without even knowing it. This is disgusting.

What's the problem? Fund managers—who are in a position to understand the risks more than your everyday investor—can decide if they want buy these bonds or not, just like any other public corporate bond.

I just wish we could invest in the Chinese companies without the USG coming in later and claiming it's illegal to invest in them and seize the investment. It's clear when the US models financially crumble, everyone will jump on the Chinese models. (https://www.foxrothschild.com/publications/investments-in-ch...)