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Curious collateral
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Lord Wickham
Pator Tech School
Minmatar Republic
#1 - 2011-10-04 08:38:55 UTC  |  Edited by: Lord Wickham
hi all, i was browsing the markets as you do and an idea/thought ocurred to me.

i was curious what valuation is placed on minerals and other market commodities. for example if i had 1million megacyte, what would the valuation be and what would be the loanable amount?
Tom Hagen
Twilight Empire
#2 - 2011-10-04 08:45:20 UTC
Hello Lord Wickham!

Different rules will be applied by different people. 1 Million mega should be relatively stable price wise, nevertheless it would be likely that an investor would not want to offer a loan on full collateral (I would offer a loan at 90% of Jita buy) since there is a risk that price of the minerals go down.

So - let me know if you are interested in a loan, we should be able to set something up in that case Smile
TornSoul
BIG
#3 - 2011-10-04 23:59:55 UTC
Running the BMBE I occasionally get the oddball collateral inquiry.

The default is to accept any collateral that can be sold via the markets.

One of the oddball exceptions would be if the collateral offered, consisted of an item where the total volume of the collateral would exceed say one month of Jita trades.

In other words, it would take me a month to actually sell of the collateral, should the loan taker default on his loan - Based on Jita volumes.

Such a collateral I would reject (and have on a couple of occasions) due to
- Not wanting to spend a month solid 0.01 ISKing in Jita to make back my ISK (In reality it would be 2x-5x longer, due to competition)
- How the hell would you set a value on this collateral - As the mere fact of having to unload that massive an amount of items would drive prices into the ground.

--

One million units of megacyte - No problem.
One million units of Planetary Vehicles - BIG problem P (true story)
Block Ukx
420 Enterprises.
#4 - 2011-10-05 03:13:01 UTC


I would value megacyte at 2,400 ISK pu, or 2.4 B ISK for the 1 M units.