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If they aren’t growing, and barely breaking even, the chances of going into the red are not low. Idk if the bonds have a rating but I don’t think X would have a AAA rating right now?

If it’s really worth 95%, it’s only held up by the political situation and investors’ general Elon bubble.

Bonds do have a rating, but Microsoft is the only AAA corporate bond I know of off the top of my head. Even Amazon is AA, while I would guess Twitter more like AMC at CCC- if it were rated.

> As I understand it, Twitter is breaking even given all expenses

What I've heard is the opposite, that the cost of servicing interest on the loans they now have exceeds 100% of their total revenue.

(Not profit, revenue: even if they cut absolutely every other cost to zero they'd still be losing money).

Debt is short a put. The shareholders can walk away from a default and you are stuck with whatever the company is worth. So the more enterprise value vs the debt, the safer.