Thursday, January 13, 2011

bond issue

I posted this question today on 2p2. See if you can give your opinion on this subject:

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.

Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or commercial paper are considered to be money market instruments and not bonds. Bonds must be repaid at fixed intervals over a period of time.

source: wikipedia.org

My question is:

As a cash games player, instead of getting a stake, is it possible to issue bonds? Is this allowed within the poker community?

For example, the cash game player is +4bb/100 over a good sample of hands and wants to move up from 2NL to 5NL (and is a long time member of good standing at 2p2). He doesn't want to get a stake for some reason of his own. This cash game player only needs to raise $100 just so he will have enough cushion on his bankroll. 

So this player starts a thread on the staking(?) forum giving details of the bond issue, like how much capital he is raising with the bonds, the price for each bond, that the term for the bond would be, say, 90 days, interest is 10%. Interested parties may then PM the bond issuer as to how many bonds they wish to subscribe to. 

At the end of the term (90 days), the bond issuer pays back the subscribers the principal plus interest, the subscribers then give feedback about their experience on that same thread. Over time, regular bond issuers will get ratings as to how consistent they are on paying back debt (pretty much like bond ratings in finance).

Has anyone done this before? Is this allowed in the poker community? at 2p2? If so, what is the best way to do this?

Thank you for your replies.