Uber Finds Secret Debt Sale Success With Ex-Goldman Bankers

The video discusses a compelling story in the bond market involving Uber's oversubscribed auction, where they raised $2 billion without a major bank's involvement. Uber, a cash-burning company, sought to raise debt ahead of an IPO, attracting $3 billion in offers. The video highlights the significant demand for private debt and the shortage of high-yield bonds, emphasizing the disparity between bond repayments and issuance.

What was unique about Uber's bond auction strategy?

• They involved multiple major banks.

• They conducted it as a public offering.

• They hired an ex-Goldman banker for a private offering.

• They set the initial bond sale at $3 billion.

Why did Uber decide to raise debt before a potential IPO?

• To decrease their management costs.

• To increase their stock value.

• To reduce their legal issues.

• To manage their cash-burning operations.

How much did Uber's bond sale offers amount to?

• $1.5 billion

• $3 billion

• $2 billion

• $4 billion

What is causing the high demand for high-yield bonds in the US?

• A significant net shortage of US junk bonds.

• A surplus of bond repayments.

• A decrease in coupon payments.

• An increase in bond issuances.

What is the main reason for the shortage of US junk bonds?

• More bonds are being issued than repaid.

• The disparity between repayments and issuances.

• A decrease in investor interest.

• An increase in coupon payments.