A hefty insurance premium can be a bitter pill to swallow, but it beats the alternative should disaster strike. Warren Buffett, who has greatly boosted his fortune over the decades by having a knack for which risks to underwrite and at what price, cut a deal with General Electric on Wednesday that would have seemed superfluous a week ago given the conglomerate’s supposed ready access to funds.

The congratulatory language from both sides does not portray Mr Buffett’s investment as indemnifying GE, but that is the inescapable conclusion. The conglomerate was not in danger of imploding and said its nearly $90bn in commercial paper was manageable. The generous terms on offer suggests that it feared losing its coveted triple-A credit rating or spooking the market by drawing on its ample bank credit lines.