dario-sacomani

Spansion's junk-bond portfolio "triple-A," says CFO

Owen Thomas · 05/27/08 09:00AM

I asked two CFOs of major Valley startups recently what they thought of auction-rate securities, the once-safe, now toxic instruments gumming up corporate America's balance sheets. One thought they were still a good investment, and bragged about the interest rate he was getting. The other thought startups had no business chasing higher returns by tying up cash. That disagreement neatly captures the fuss that the Wall Street Journal describes in a new article. It's a confusing subject on which smart people can disagree. But where there's room for disagreement, there's also room for delusion.