Net net: Morgan Stanley is all excited about its role in financing the buildout. But dimissive of the idea that the efforts might not be generate enough revenue to pay for the centers, and stepping around the current lack of power for them.
If they arrange financing but don't hold the loans themselves, they get paid without assuming any risk, yes?
> If they arrange financing but don't hold the loans themselves, they get paid without assuming any risk, yes?
Yes, that's correct. It's typically how investment banks operate, their main business is facilitating transactions. They'll turn around and sell the loans to hedge funds and private investors.
This obviously mean they have incentive to encourage buildouts and to downplay the risks of the loans.
If they arrange financing but don't hold the loans themselves, they get paid without assuming any risk, yes?