The yield on the bond is 6 .

So a security in the equity world is a stock.

Savings bonds.

May I have coupon tickets?

They're savings bonds.

So it's going to be 6,000 times 1,000 bond certificates.

And if buying debt seems like a weird thing to say, buying debt is the same thing as lending money (lending money).

We would create incentives for securitization.

Annual rate of security

...even UBahn tickets.

But then there's a very fundamental difference in what the holder of the bond is doing.

You can't get it on Yahoo!

It can do it through debt or equity.

I have 4 billion in residential CDOs, collateralized debt obligations.

But kind of the one that people always talk about, I guess in the same phrase, is bonds.

There's very little chance of them defaulting on their loans.

And we came up with this idea of issuing bonds, press freedom bonds.

I feel secure when I invest in stocks but not bonds.

So it's essentially this is an IOU from Company XYZ.

The Spanish Victory Bond.

...where it seems like there might be a log jam in the credit market because with just printing money and buying government securities maybe the interest rates on government debt goes down but maybe because of panic or crisis, interest or the prices on these things don't behave properly.

This guy, he does have interest.

And because it's a junkier rating, no one is going to want to buy it.

And we said there's different kinds of debt.

So this is what people are talking about when they say treasury prices go up, if treasury prices go up then the yields go down

What we are going to do is go buy things like highly rated mortgage backed securities, or things like commercial paper, AAA corporate debt, so that those things, the interest on those things goes down.

My next presentation, I'm going to take it to a further

So that's what we're going to show you in the presentation on collateralized debt obligations.

Finance, you type in the ticker symbol and you get the price for that day.

I have a whole video on mortgage backed securities.

And what is a bond?

So what you do is you have, let's say, the 6 million.

So when most people talk about the yield curve, they're talking about the treasury yield curve.

And let's visualize what a bond certificate could look like.

And the environment might be things like the stock market or the bond market or the commodities market.

Once you have all of that put together, there's not one reason why you couldn't actually have a marketplace for all of that, where you cannot dispose of all of those bonds in a pretty quick way.

bishop?

There is a price.

And this one that was in Kenya, they went around and distributed to people vouchers, discount vouchers.

And it could be divided into you could divide this into 6,000 bond certificates.

And I kind of jumped the gun a little bit.

Is that the original Victory Bond?

It might have been structured so that Corporation A right here, before even issuing the bonds, they include this insurance with the bond.

And we learned that debt securities are often called bonds.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.