X Debt Shopped With $6B Sweetener From Musk's AI Bet

X Debt Shopped With $6B Sweetener From Musk's AI Bet

Assessment

Interactive Video

Business

University

Hard

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The video discusses a group of banks led by Morgan Stanley attempting to market debt tied to a social media platform, X, which has been on their balance sheets for over two years. Despite improved earnings, the debt is challenging to pitch at par value, but it's being offered at $0.95 on the dollar. A key attraction for investors is X's stake in an AI startup, valued at $6 billion, which adds appeal to the investment. The banks involved include Morgan Stanley, Bank of America, Barclays, and MUFG.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main reason banks are trying to offload the debt tied to X?

The debt has been on their balance sheets for over two years.

The debt is valued at $1.05 on the dollar.

The banks are looking to invest in new projects.

The debt is tied to a failing company.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At what price is the debt tied to X being offered to potential investors?

$0.90 on the dollar

$0.95 on the dollar

$1.00 on the dollar

$1.05 on the dollar

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What makes the debt tied to X more appealing to investors?

A government guarantee

Improved earnings in the social media business

A stake in an AI startup valued at $6 billion

A reduction in interest rates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the valuation of the AI startup XI, in which X has a stake?

$50 billion

$20 billion

$100 billion

$10 billion

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which banks are leading the effort to offload the debt tied to X?

Goldman Sachs and Citibank

Morgan Stanley and Bank of America

Wells Fargo and JPMorgan Chase

Deutsche Bank and HSBC