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  • Week 6

    • Introduction:

      Since 2011, Netflix has raised roughly $15 billion in debt (mostly by issuing junk bonds) to help fund its content production around the world. That led a group of analysts, reporters, and investors to question whether its business model was sustainable long term—especially as streaming competition increased.” (qz.com). Netflix is selling $1 billion of five-year non-callable junk bonds, with half denominated in dollars and half in euros. In its bond-offering announcement, Netflix says it may use the net funds it gains for "content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions."

       

      Research on the Internet and other available sources and prepare to critically define the concept of Junk Bonds, and critically describe the features, and critically analyze why business-like Netflix find investors to fund their projects with bonds with low quality features.

      Prepare a short 200-word report. To be uploaded on the VLE.