Originally Posted by
Buster
I'm not an expert on Trump's personal situation - mostly because I'm not interested that much. But a quick google search seems to indicate that his debt ~$1 billion or so secured against a variety of assets. It seems that these assets might be worth ~$2.5 billion and are probably throwing off enough cash flow to service the debt. So his LTV is about 40%. That's not a ton of leverage. If he can't find financing to roll over his debt, then he can take time to liquidate assets in a non-firesale manner, de-leverage even more and be fine.
The idea that he has debt "due in three years !!11!!!!1!" is just people talking about shit they don't understand. Debt has an amortization or some form of repayment obligation, and then it has a term. This is to the benefit of the Borrower as well, as they have the ability to shop their financing at the end of the term (and long terms have higher yields). So in a couple of years, as they debt comes due, his CFO will shop around for lenders to see who has the best terms on the notes/bonds that are due. This is like, the most basic shit ever. If nobody wants to refinance his 40% LTV, then he gets some temp financing at a higher rate, sells some shit, and takes out the bridge. Or he just keeps offering higher yields on his debt until someone bites.
How dare you!
But he owes so much and it’s coming due!! Some greasy back alley mobster is going to break his toupee’s thumbs.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft