What if the total supply of bonds went up to 80000 or 160000? The demand can't keep up with the supply, and the price will tank, since there is only so much capital that can flow into the GLBSE at any given time.
Say Chevron issues 100000 bonds and you buy one at a fixed coupon. If they then issue 400000 bonds 2 weeks later with the same coupon, your original bond will probably drop (in this case maybe only slightly) in value due to the increased supply of those bonds.
Say Chevron issues 100000 bonds and you buy one at a fixed coupon. If they then issue 400000 bonds 2 weeks later with the same coupon, your original bond will probably drop (in this case maybe only slightly) in value due to the increased supply of those bonds.
That's exactly the point. The market price for mining bonds was high, so more and more bonds hit the market. If gigavps didn't issue them, someone else would (and did). On the other extreme, if the market price for bonds was lower than the cost of buying the equivalent hardware, there would be no incentive to issue any more bonds, and supply would naturally be cut off.
