Author Topic: Theory: Could a DAC issue a bond to a DAC and repay it with future profits?  (Read 1112 times)

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Offline BunkerChainLabs-DataSecurityNode

I think this might be something that will be possible with the management features of the UIA in the next future release.

I *think*.
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Offline luckybit

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I know corporations can issue bonds. I know governments can issue bonds.
Quote
A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.

Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher, even for top-flight credit quality companies.

Read more: http://www.investopedia.com/terms/c/corporatebond.asp#ixzz3XpztWni4
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What would prevent Bitshares from issuing a Bitshares bond? This would allow DACs or individuals to buy the bond to get a percentage of the profit of Bitshares until the debt is paid back.

In theory with ACCT would it be possible for DACs to issue bonds to each other? Would this be a disaster?

I'm not an economist but it seems like it would be technically feasible for DACs to lend to each other using bonds. It's a question of whether it would be desirable to do it though.
« Last Edit: April 20, 2015, 08:54:03 am by luckybit »
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