Amusingly it was Elon's other other company that was buying SolarCity's bonds--SpaceX. I love Elon, but man he gets creative with financing. Makes me nervous that it could all blow up.
Can you explain why you're worried about Solar City bonds when they have the same risk as high yield corporate bonds? Are people going suddenly stop paying for electricity?
If the risk-adjusted return on those bonds is fair for their price then why wasn't there an independent third party buyer at that price? Isn't it more likely that SpaceX has overpaid for the bonds due to Musk being overconfident in Solar City?
