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Uilliam Nebel
Amarr
13th Udorian Rangers
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Posted - 2008.10.28 01:16:00 -
[1]
A pretty straight forward idea. A corporation issues a contract that states the following for the bonds in an offering.
Face value of the bond. (For example 100,000,000 ISK which would be what the buyer would pay, and get paid back at maturity.)
The time to maturity. (10 weeks.)
The interest and coupon payment. (So a bond at 6.5% interest would pay 6,500,000 per coupon.)
A coupon time period. (2 weeks, so once every other week the bond holder in this example would expect a payment of 6,500,000 from the bond issuer until maturity.)
Callable period. (How soon a bond issuer may pay back the principal, and not need to make any remaining coupon payouts. So say five weeks.)
There should be no system put in place to guarantee these contracts. This is mostly just a way to help those who issue, and buy bonds from one another keep track and receive payment. It can be taken a few steps more forward, in that they could use the current share system somewhat, in that a bond buyer receives a item like a share in there wallet, which is just called a bond instead. And the issuer can just payout their bonds, like they do their stock dividends. The main difference here is that they can choose to payout a specific set of bonds, where as a stock system makes you pay out to all shares of the corporation.
Also bonds should be able to be traded to help a player run market start up. A bell and whistle would be some sort of rating/credit system. So people could know how reliable/honest from past bond buyers a corporation has been in honoring them. Perhaps just a simple link that shows percentage of yay or nay to a specific bond issuer and the total number they have issued. But really people should do their research into whom is issuing a bond, and not just go buying these contracts blindly and expect to be paid as this system would just be for the benefit of issuers and buyers book keeping and payment managing, not a guarantee of payment on the bond itself.
Thanks. |
Herschel Yamamoto
Bloodmoney Incorporated
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Posted - 2008.10.28 01:22:00 -
[2]
I'm entirely in favour of better financial instruments, so long as there's no more guarantees than there are at present. |
Rakaim
19th Star Logistics
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Posted - 2008.11.07 05:38:00 -
[3]
Oh man, if there was intrest in this game people would owe me a LOT more money than I have now... You know who you are. ;) Contracts would clear up the debates.
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Scagga Laebetrovo
Evil Bastards
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Posted - 2008.11.08 13:45:00 -
[4]
I've strongly supported the evolution of contracts and support for money-lending in my manifesto, this is a good idea and very much in tune with my ideas.
Scagga is running for the CSM, see his campaign thread to know of his standpoints! |
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