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Okay, if they're real financial products, I'd like to buy one. Which banks will sell me a commitment to pay out one dollar per year forever, including after I d
by csande17 4y ago
Okay, if they're real financial products, I'd like to buy one. Which banks will sell me a commitment to pay out one dollar per year forever, including after I die?
- anonymoushn 4y agoI guess when someone uses a comment section as a substitute for a search engine I should not expect them to believe that any financial product that their bank will not sell them exists. https://en.wikipedia.org/wiki/Perpetual_bond#Examples https://en.wikipedia.org/wiki/Perpetual_bond#Examples
- csande17 4y agoArweave should just buy the single remaining bond that that Dutch water board issued in 1648. That'll solve all of their capital problems forever! More to the point, an organization can write a promise on a piece of paper. That does not make it economically possible to keep that promise.
- anonymoushn 4y agoIndian banks are issuing these things in current_year. You can just buy them. Do you have an argument about why the formula used for pricing these bonds is incorrect? What do you think about a related financial instrument backed by sovereign bonds that are rolled at expiry? Is it also impossible?
- csande17 4y agoI expect that the price of debt issued by Indian banks correctly incorporates the probability that those banks will continue to exist and honor that debt until the end of time, which is 0.