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Old 20-01-2010, 08:40 PM
Flix
 
Default This Bond Issue

How does it work?

What's in it for the investor and what are the risks - what determines what return they get on it?

And how does it enable those cunts to syphon off money from the club?
 
Old 20-01-2010, 08:40 PM
believe
 
Default Re: This Bond Issue

oh dear
 
Old 20-01-2010, 08:43 PM
Flix
 
Default Re: This Bond Issue

Quote:
Originally Posted by believe
oh dear
Yes dear?
 
Old 20-01-2010, 08:45 PM
believe
 
Default Re: This Bond Issue

Quote:
Originally Posted by Flix
Yes dear?
wrong forum
 
Old 20-01-2010, 08:46 PM
Ethers
 
Default Re: This Bond Issue

Bond issue? What?
 
Old 20-01-2010, 08:52 PM
The Watcher
 
Default Re: This Bond Issue

http://en.wikipedia.org/wiki/Bond_(finance)

ffs, don't you access to the internet
 
Old 20-01-2010, 08:55 PM
armchair
 
Default Re: This Bond Issue

For ten pounds you get a black and green balloon and a copy of 'meet the spartans'
 
Old 20-01-2010, 08:58 PM
Toilet sniffer V
 
Default Re: This Bond Issue

You give United £100 for a period of time. They do whatever they like with it. In return you get 7% interest for the time they have your money and if the club goes belly up you're at the front of the queue to get your money back when everything is sold off.

Bonds are one of the safest forms of investment, the government sell bonds (called Gilts) and they are the safest investment possible, even safer than putting your money in a bank. The govt has never failed to pay a bond in 400 years. With the recession now you may hear that we may lose our AAA rating in the markets, if that happens we will have to pay a higher rate of interest on the bonds we sell as they will be seen as riskier due to the level of debt we have. That means that raising money will be a lot more expensive which is why all parties have agreed to slash public spending, they can't afford to pay more interest when we are borrowing as much as we have to. It's worth pointing out that Gordon Brown was the chancellor for 10 years and we're in worse shape than ever before financially and still people laud him.
 
Old 20-01-2010, 09:29 PM
Flix
 
Default Re: This Bond Issue

I don't know, one forum for this, one forum for that

So is the interest paid over the term of the bond or when it matures? And if it's paid at a fixed rate, as appears to be the case, is the success of the business (or lack of it) irrelevant, providing it's still around to to pay you back?
 
Old 20-01-2010, 09:42 PM
teflon_terry
 
Default Re: This Bond Issue

Quote:
Originally Posted by Toilet sniffer V
You give United £100 for a period of time. They do whatever they like with it. In return you get 7% interest for the time they have your money and if the club goes belly up you're at the front of the queue to get your money back when everything is sold off.

Bonds are one of the safest forms of investment, the government sell bonds (called Gilts) and they are the safest investment possible, even safer than putting your money in a bank. The govt has never failed to pay a bond in 400 years. With the recession now you may hear that we may lose our AAA rating in the markets, if that happens we will have to pay a higher rate of interest on the bonds we sell as they will be seen as riskier due to the level of debt we have. That means that raising money will be a lot more expensive which is why all parties have agreed to slash public spending, they can't afford to pay more interest when we are borrowing as much as we have to. It's worth pointing out that Gordon Brown was the chancellor for 10 years and we're in worse shape than ever before financially and still people laud him.
They did however unilaterally drop the coupon of the 5% war loans to 3.5% in 1932 - this is effectively a default of sorts.

Nowadays, in a fiat currency world, defaults are more likely to take the form of inflation and currency devaluation - the UK printing £200bn would be considered a default by some. Inflation reduces the real value of coupon and principal payments which are generally fixed in nominal terms.
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