Market Discussions

CCP issued securities are a different product than the bonds which currently exist in EVE.
Instead I believe the change of game mechanics and increased investor awareness would help player issuances and create more demand for their bonds.

1. Game mechanics will allow bonds to be traded via eve market which many will find much more compelling than going through other channels like the forum.
2. Investors can now value player bonds better due to the creation of the “risk free rate”. Better valuation = less risk = lower- yield & spread = more volume
3. Increased investor awareness will get more EVE citizens to invest in player offerings and hence increase demand for such bonds.

Yes, I agree

I have only briefly touched this area in some of the post earlier in the thread.
Fact is that EVE is a world full of Alts, No civil courts or justice system.
Characters only face reputational risk which may be bypassed via character selling or sending to biomass. So the real difficult question is; How can we increase investor protection enough for a genuine effective player operated capital market to develop?

Disclaimer: This topic is slightly out of my area of expertise and full of in-game mechanic pitfalls. I therefore will not give any “hard” advice but merely soft suggestions. I also recommend anyone with knowledge and interest of this topic to participate in the discussion.

1. As stated in the beginning of the thread under 8) “A genuine need for public money is needed”.
I suggest CCP develop a farms & field concept where corporations will need to invest heavily into infrastructure in order to create player operated industries.

2. Who can raise money?
In the OTC market everyone can participate exactly how it is today.
But if you wish to raise money through EVE Market (which acts as the exchange and regulator) rules will apply.

3. Skills: In order to get your bonds listed the CEO + some Directors will need some skills trained to 5. It could for example be a Finance, Corporate Finance and Capital Market Theory.

4. Information: The issuer is recommended to write a business plan which will be attached to the bond (in the “info” tab in-game) and required to open a thread about their IPO in the EVE forum (a new forum channel dedicated to IPOs).
The public should also have access to various statistics about the company such as:
Money and assets currently held, Income, Expenses, time members have logged on while in corp, skill points accumulated while in corp perhaps via some sort of API key.

5. Pay a non-refundable fee upfront (to a NPC investment bank for the listing service)
If the issuance is under-subscribed the IPO will be cancelled and the listing fee lost

6.Bond Covenats: I suggest a list of predefined covenants which the bond issuer can agree or not agree to prior to the Bond IPO (and this information will be available to investors and the public), Examples;
The corp will not be able to transfer or spend more than X mio ISK per X days.
The corp MUST invest X mio ISK into a Player Operated Complex within X days.
All T1 (industrial/freighter) (frigs/crus/bc/bs) ships must be insured at all time.
Must have minimum X characters, X skill points in corp
Must have minimum X mio in revenue per X days
Must have minimum X mio worth of equipment/ships in corporate hangars

7. Collateral – The bond issuer can decide to put down assets as collateral:

7.1 Ships – the CEO will have full access to ships put down as collateral, but he will not be able to sell them through EVE Market. Further I suggest all ships held as collateral will get a unique id number. If the corp defaults all ships held under collateral will be repossessed if docked. None-docked ships will get a permanent criminal status and repossessed if they dock.

7.2 Sovereign structures – at default all sovereign structures will be dismantled and repossessed
7.3 POCs – will be liquidated and any recovered money will be paid out to the bond holders
7.4 Characters – Perhaps the CEO or Directors should be able to put down their Character as collateral.

All items Repossessed should be instantly transferred to Jita and sold. However the proceedings from the sale should be subject to a deduction representing transaction-, repossessing and transport costs. Perhaps 25% for High-sec; 50% for Low and 75% for Null

Default –
If a corporate fails to pay either principal/interest when due or break any covenants on the bonds, will constitute a legal default and the bondholders will have prior legal claim over shareholders to all assets held by the corporate. In other words the CEO will be fired (all characters in the corp kicked to a NPC corp) and the bondholders would receive the proceedings from the fire sale of all corporate assets. In the event that the proceedings from the sale surpass those of the bond principal, exceeding funds will be divided amongst the shareholders.

This system was never intended to be bulletproof - just like IRL
However the majority of scammers will not be able to launch a successful bond issue. Scammers will also need to invest considerable time and effort in order to pull it off.

Thank you.


To be honest, I don't understand all of the technical words you're using. I think I understand what you mean about no default Risk, so I guess we'll have to agree to disagree.

I just think there ought to be some inherent risk, even in with NPC-issued bonds.

Thank you again.

I think it would be interesting if you could bet on faction warfare. Much like a hedge fund trader. It seems to me like there are enough big ISK players in EVE that if they could influence faction war outcomes for a payoff, they'd do it. (Who knows, maybe they already do?)

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