Savings bonds.

They're savings bonds.

So a security in the equity world is a stock.

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

Now let's say that Company x has also borrowed some money.

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

You can't get it on Yahoo!

We would create incentives for securitization.

It can do it through debt or equity.

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

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

Balance Sheet

Indeed, we are.

So, do you trade off time with Luke?

I'm buying a treasury bond, means I'm implicitly lending that money, if I buy the bond directly from the government, that means I'm lending that money to the U.S. government.

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

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

And we said there's different kinds of debt.

This could have been a straight debt from a bank, or this could have been via a bond issue.

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

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.

I have a whole video on mortgage backed securities.

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

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

Lend your money and lose your friend.

Deposits on long term leases.

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

bishop?

But I can't do it, me as a pension fund, I cannot lend them money.

And what is a bond?

That would leave us square.

We're even now.

Their balance sheets are identical, except for Jason's Shoes has 100,000 in debt, and Ben's Shoes has no debt.

This is the angel investor, and this is all of us down here, and all of this is equity.

And we learned that debt securities are often called bonds.

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

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

Lend your money and lose your friend.

And let's say that's all of their liabilities.

Currency and bond markets are relatively calm.

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

There is a price.

I don't want to lend or borrow.

let's say it's a million dollars.