>NEW YORK, Jan 14 (Reuters) - Oracle was sued on Wednesday by bondholders who say they suffered losses because the company chaired by billionaire Larry Ellison failed to disclose it needed to sell significant additional debt to build out its artificial intelligence infrastructure.>The proposed class action was filed in a New York state court in Manhattan on behalf of investors who bought $18 billion of notes and bonds that Oracle issued on Sept. 25, two weeks after Oracle announced a $300 billion, five-year contract to supply OpenAI with computing power>These investors said they were blindsided when Oracle returned to the capital markets seven weeks later to obtain $38 billion of loans to fund two data centers to support the OpenAI agreement.>"The bond market's reaction to Oracle's additional debt was swift and bracing," the bondholders said, as their own debt fell in value and began trading at yields and spreads comparable to debt from lower-rated companies because of the perceived higher credit risk. Oracle's notes and bonds carried low investment grades.>Bondholders led by the Ohio Carpenters' Pension Plan said statements in offering documents for their bonds that Oracle "may" need to borrow more were false and misleading, because the company was already planning to do so.
Long term gov bonds onlyCorpo bonds arent safe when the AI bubble crashes
>>61645462>Corpo bonds arent safeNo shit. Especially with these compressed spreads. The only people buying corpo bonds are doing it because they need to stuff derivatives.
>bought 1000 bucks of oracle>was up 80 bucks>"hmmm I should sell before CPI">took a nap instead>woke up down 100 buckst-thanks
>>61645419>invest in a company's bonds>lose money>crykys
>>61645419Oracle is going to be the Bear Stearns that brings down the entire tech sector.
Well it looks like yields can go back up so better now than later.
>>61645419>Ohio Carpenters' Pension PlanTradies work all their life for shit pay and then get scammed on retirement too lmaoooooooooooooooo
>>61645462>bonds>2026Wew. Pic unrelated
>>61645419>invest in a low yield financial derivative>risk increases and devalues the product>"OYY VEYYY YOU ARE MAKING ME LOSE MONEY>if they bagheld their bonds to expiry they would gain as much money as they were promised anywaysWtf, do i get to sue companies when my options and stocks make me lose money aswell? Its also UNREALIZED losses, unless they decided to sell them at current market value at a loss Sounds fucking retarded and extremely jewish
>>61645419Do company bonds give that much of a better yield than government ones?
>>61645419Jews jewing Jews jewing Jew-ish jews jewing goy, always has been always will.
