Inflation destroy BBBY
JPM brokered a loan deal for BBBY
2014 interest free rate 0 to 0.25%.
2014 BBBY bond was @ 4.9 ~ 5%.
2022 interest free rate 2.25 ~ 2.50%.
(not gonna use TY for assumption, just fed interest)
what do you think the loan rates are ? we can assuming the loan will be 4.9% + 2.25% = 7.15% ~ 7.5% in a normal range. With a probablity to default I can safety say that the rate will probably be bumped up by a few points.
With inflation drastically increasing, consumers would probably spend lesser. i dont see any way anyone can save BBBY. This is not due largely to their business model but the enconomy we are in at this moment.
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