Sometimes financial engineering gets you more than you bargained for.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hiring company will charge you for the scratch they discover when you hand back the vehicle.
Hertz Global Holdings Inc.’s bankruptcy protection filing on Friday was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. Rather than make the rental giant more robust, financial engineering seems to have made Hertz more brittle.
Chris Bryant | Bloomberg