Market Discussions

I'm interested and I could fill the entire loan provided the rate and collateral are acceptable.

Could you give me details of the collateral?

Never did understand these threads...

If you have collateral equivalent or close to the amount you want to loan then liquidate it you moron.

Not to derail the thread, single post question: I understand the reason for collateral in real life. How does this play in EVE? It sounds like a form of asset leverage. Unlike in real life you can't repo something from someone unless they willingly give it up, so the asset they purchase with funds (like a mortgaged home in real life) wouldn't be acceptable collateral for the loan.

What types of collateral are common to use and know they will want to come back for; a blueprint original?

-dismas

The reason for colleteral is it's items that you have but do not want to liquidate because you will find use for them at a later date.

Collateral holding is one of the most frequent activities I do these days.

Main reasons for it:

- Hard / long to liquidate items while the requester found a short time window opportunity to earn money from. This includes items that would cause their market to crash hard if sold fast.

- Hard / long to buy back items the requester does not want to spend lots of time to re-acquire back later.

- Both of the above.

- Items that would sell fast but at great disadvantage.

- Items that are meant to be held because it's believed they will yield a lot of revenue by the time the investment is over. This includes items that are appreciating quicker than the ISK asked for.

Examples:

1) Researched capital BPOs. They may sell quick but at great loss, since it takes time to find buyers willing to give barely more than NPC price. At the same time, repurchasing the unresearched / less researched capital BPOs later will require even half a year in research just to return to the starting situation.

2) T2 rigged pimpmobiles with Estamel hardeners and similar. The resale value of T2 a rigs hull is barely above the value of the bare hull (most will tell you they want to use other rigs anyway) plus the obvious inconvenience of placing a fat value contract instead of a market order. Selling those multiple billions value rare modules is also a slow process and if needed at the wrong time, they will yield a loss of hundreds of millions (market swings). At the same time repurchasing the same bunch of modules after is a pain because they are rarer than others.

3) Items purchased at low price. The guy just bought them because he wants to make a killing by selling them later, it'd be pointless to dump them again and then repurchase them 1 / 2 months later, when they cost a lot more.

4) Speculative items. Same as above but worse. A guy 0.01 ISKed some golden eggs chicken for days with the premise it'll gain some 40% value by 15 days. No way he's going to dump it. Actually they usually post it as collateral so they can loan ISK to buy more of the same item and get an even bigger revenue.

5) Advanced tecniques derived from the above, where a person basically shorts ISK to go long on an item with the premise said item value will outpace ISK within a period.

It takes time to unload some assets, and sometimes it costs money to unload them. If let's say you have 5 fitted dreads you are not using right now, and some BPOs you want to keep for the future but don't want to outright sell them, it makes sense to use assets as collateral rather than selling them on the market and reacquiring later when you need them again.

EDIT: Plus what Vaerah said above better than I did.

Absolutely right! Clearly, anyone who is sitting on a large pile of Zydrine but wants a bit of liquid cash over the next two months should liquidate his stock and then rebuy after the opportunity for which he purchased the stock in the first place has passed. You should post her more often as I think we all benefit from the laser-like clarity of your thought.

I (kwark) would be happy to loan you the full amount again if your collateral this time still adds up.