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Post by rossendale on Dec 24, 2023 15:44:21 GMT
I didn't see this board so I'll repost here. There is a problem with bond markets being too stale and so I'd suggest government bonds as a solution. As I said in my other thread:
"Risk-free government bonds are a major part of the modern economic system, not having Government Treasuries maks the SIM company bond market unrealistic.
The reason I'm suggesting it is because current bonds are too stale. Everyone just issues at .05% and their bonds are filled no matter their rating.
Government bonds would be risk-free and so companies would actually have to price their bonds competitively allowing for a more dynamic bond market.
In this case the realism would make a market more interesting."
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Post by Sir Flamealot on Dec 25, 2023 1:07:49 GMT
It is an interesting idea. However, in my opinion it creates ridiculous, unnecessary complication of the bond market and does nothing to help anyone.
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Post by mandg on Dec 26, 2023 1:10:56 GMT
I don't think the 'bonds' are 'too stale'. I think the problem is because there is a market failure (as I wrote here: simcompanies.proboards.com/thread/2741/market-failure-bond). But I must point out that regardless of the problem, a government bond is an excellent idea and it can even be integrated with the already existing system of government tenders
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