Originally Posted by azanimefan
This is why people who never worked on or around wallstreet shouldn't comment on stock news. You're mostly right, though the debt is entirely paper. see a huge percentage of major trades on wallstreet are leveraged trades, meaning they're made on debt. The fact a financial institution has debt means absolutely nothing excepting for the fact that they're doing leveraged trading, which every financial institution does.
Billions of dollars can change hands on wallstreet then change again all on debt instruments on a daily basis. Even more interesting is how many trades take place without actual money changing hands at all. See traders on wallstreet can actually buy stock and then hold off paying for that stock for 3 days. Of course sometimes the expected turn around sale doesn't happen and the financial institution will then pay for the stock which they're holding on to past 3 days with debt still intending to sell it for a profit shortly.
I'd be more concerned about a large player like softbank not having debt at all.
You are talking about people who don't understand to not comment, but you are not taking your own advice apparently.
First off, softbank stated that they want to reduce the dept, it wasn't a comment. It was a fact based on the what they said.
Secondly, being in dept or not being in dept, do have certain implications. They have many bonds they need to cache out, which is part of that debt, and that is money that they need to repay to someone, else it could potentially cost more along the way.
They also plan to divert money to a fund, so then need liquid money, and instead of borrowing more money, they decided to sell stocks and reduce fundings in order to have that available money (on paper, not on paper, doesn't matter).
They also made a lot of money in 2018, and will be expected to top that in 2019. Part of that is also, reduce debt.
This is not a 3 days debt. That is debt that has been accumulating in the last 2 years. I have no idea where you pooped that assessment, but clearly you did not go over reports of their finances before you commented, hence, again, should take your own advice sometimes.