Post
Topic
Board Securities
Re: [GLBSE] MORE Pirate Pass Through Bonds!
by
BinaryMage
on 26/05/2012, 05:39:26 UTC
Here's some more info for you guys:

I just put these numbers in the spread sheet and saw that, you made 3113.95 from your sale.
The average price is 3113.95 / 3000 = 1.038
At that price, you are losing money for this round of PPT.A.

Case 1 - Sell 3000 shares of PPT.A at 1.038 with 960 btc tied in insurance money (tied up earning 0 interest)
  no default: PPT makes 113.95
  default: PPT loses 960

Case 2 - Put 960 btc with pirate
  no default: PPT makes 960 * .28 = 268.8
  default: PPT loses 960

Difference is 268.8 - 113.95 = 154.85
So you are effectively losing 155 bitcoins for this round. Your loss for if pirate defaults is the same.
Like I said, you may need to rethink the lowest price that you will sell bonds at.


Perhaps I am missing something, but nowhere can I find the statement that they must actually hold .32 BTC per bond in a wallet instead of in investments or in Pirate himself. All that is stated is that they will pay 0.32 BTC per bond if Pirate defaults.