Selling Credit Default Swaps on imsaguy

stochastic

hero member

Activity: 532

Merit: 500

Quote from: imsaguy on June 08, 2012, 09:36:16 PM

Quote from: nimda on June 08, 2012, 08:56:19 PM

Is this going to turn out like Goat's buying LONG's on his own bond?

No. I will refrain from purchasing as I don't need insurance against my defaulting Wink

He would have been purchasing insurance if he bought the .SHORT bonds. The .LONG bonds are the people that are guaranteeing that the dividend will be paid.

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Quote from: Andrew Vorobyov on June 08, 2012, 05:03:34 PM

Quote from: copumpkin on March 29, 2012, 10:39:22 AM

Next up, CDOs (and synthetic ones!). Let's see if we can replicate the mortgage crisis, guys

ROFL!

Anyway, sort things out and let speculation to begin... (Stacking my coins...)

PS. Can we have a little more info about you? it's just a nickname on forum now...

Hah, I was just kidding, so my real-life reputation shouldn't be necessary

I'm not secretive though, so if you're just curious I can elaborate (or you can google).

imsaguy

vip

Activity: 574

Merit: 500

Don't send me a pm unless you gpg encrypt it.

Quote from: Andrew Vorobyov on June 08, 2012, 05:03:34 PM

Quote from: copumpkin on March 29, 2012, 10:39:22 AM

Next up, CDOs (and synthetic ones!). Let's see if we can replicate the mortgage crisis, guys

ROFL!

Anyway, sort things out and let speculation to begin... (Stacking my coins...)

PS. Can we have a little more info about you? it's just a nickname on forum now...

Woo, zombie thread!

imsaguy

vip

Activity: 574

Merit: 500

Don't send me a pm unless you gpg encrypt it.

Quote from: nimda on June 08, 2012, 08:56:19 PM

Is this going to turn out like Goat's buying LONG's on his own bond?

No. I will refrain from purchasing as I don't need insurance against my defaulting Wink

nimda

hero member

Activity: 784

Merit: 1000

0xFB0D8D1534241423

Is this going to turn out like Goat's buying LONG's on his own bond?

Andrew Vorobyov

hero member

Activity: 558

Merit: 500

Quote from: copumpkin on March 29, 2012, 10:39:22 AM

Next up, CDOs (and synthetic ones!). Let's see if we can replicate the mortgage crisis, guys

ROFL!

Anyway, sort things out and let speculation to begin... (Stacking my coins...)

PS. Can we have a little more info about you? it's just a nickname on forum now...

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Due to some outstanding open questions about aspects of the contract (preventing fraud, etc.), I'm putting the auction and sale of these CDS on hold until I can resolve them. It turns out that getting the details right in this setting is a lot more difficult than it might be in the "real world".

Sorry for getting people's hopes up! I'd like this to work, so I'll be thinking hard about how to resolve the problems and will post an update once I have more to say.

BurtW

legendary

Activity: 2646

Merit: 1138

All paid signature campaigns should be banned.

Quote from: imsaguy on March 31, 2012, 11:54:20 PM

Quote from: BurtW on March 31, 2012, 10:59:29 PM

I think we need someone:

with a very high rep
a lot of personal financial backing
that believes in Pirate and would like to loan to Pirate
is not Pirate
does not have loans to Pirate and will not have loans to Pirate

to sell CDSes on the Pirate loans.

aka you?

Nope since I am Pirate - just joking.
It is not me since I have loans to him.

imsaguy

vip

Activity: 574

Merit: 500

Don't send me a pm unless you gpg encrypt it.

Quote from: BurtW on March 31, 2012, 10:59:29 PM

I think we need someone:

with a very high rep
a lot of personal financial backing
that believes in Pirate and would like to loan to Pirate
is not Pirate
does not have loans to Pirate and will not have loans to Pirate

to sell CDSes on the Pirate loans.

aka you?

BurtW

legendary

Activity: 2646

Merit: 1138

All paid signature campaigns should be banned.

I think we need someone:

with a very high rep
a lot of personal financial backing
that believes in Pirate and would like to loan to Pirate
is not Pirate
does not have loans to Pirate and will not have loans to Pirate

to sell CDSes on the Pirate loans.

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Sorry for the delay on more detailed terms of default. There are some tricky bits I'm still working out, but I'll have them up soon.

Also, about people's requests for pirateat40 CDSes, I've decided against offering them. This is not because I don't have faith in him (I'm one of his largest lenders), but because it simply isn't in my interest to offer them. Selling CDSes on him carries the same risk as a direct loan to him, but necessarily earns less in fees than the interest that could be made in a direct loan (and there's not a good notion of risk-free rate for doing other things with the coins you get by not lending). Note that this isn't always the case, especially when it's hard for people to lend to pirateat40, either because they don't have an account with him or because he doesn't have the capacity to accept their coins.

FredericBastiat

sr. member

Activity: 420

Merit: 250

In the way of firsts, if copumpkin is offering CDS's, I'll offer the first CDS Options referencing his CDS which will be labeled 'OP_pump_kin_CDS' for puts and 'OC_pump_kin_CDS' for calls.

Definition:
CDS option: A credit default swaption or credit default option is an option to buy protection (payer option) or sell protection (receiver option) as a credit default swap on a specific reference credit with a specific maturity.

Derivatives are cool. It just so happens that they also tend to cause systemic risk in many cases.

Any takers?

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: nanotube on March 29, 2012, 09:46:24 PM

sgornick: any reason the 'bitcoin first' page is separate from the older History page?

Ya, probably so that the History page was more specific to bitcoin, but firsts was for trivia and only true firsts.

Like maybe going to v0.6 release is enough to make it into the History, but not something that would go into firsts.
At the same time, the first food truck to start using bitcoin might be something suitable for the Firsts page but would be extraneous in the Bitcoin History page.

nanotube

hero member

Activity: 482

Merit: 501

Quote from: ?? on ??

Quote from: Stephen Gornick on March 29, 2012, 07:30:35 PM

This offer to sell was added to the list of Bitcoin Firsts. If there are actual buyers, please update the wiki to reflect the change from first offer to first sale of a Bitcoin-only CDS.
- http://en.bitcoin.it/wiki/Bitcoin_Firsts

Nice.

Although slightly OT, when was the first BTC loan extended ?

Anyone been here long enough to remember ?

Not sure if the first loan coincided with the first short sale... but if so, then yes, I remember. :) October 28, 2010
https://en.bitcoin.it/wiki/History

sgornick: any reason the 'bitcoin first' page is separate from the older History page?

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

This offer to sell was added to the list of Bitcoin Firsts. If there are actual buyers, please update the wiki to reflect the change from first offer to first sale of a Bitcoin-only CDS.
- http://en.bitcoin.it/wiki/Bitcoin_Firsts

RaggedMonk

sr. member

Activity: 308

Merit: 250

Watching.

Quote from: nanotube on March 29, 2012, 12:59:21 PM

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

I have provisionally agreed to be the event occurrence arbiter, subject to the creation of, and my agreement to, more specific definitions of credit events for the contract, which are currently being worked on.
-----BEGIN PGP SIGNATURE-----

iEYEARECAAYFAk90oroACgkQ5/k4vslVlLIahACdEZwW7CByJwETP58kX88HH5x6
yu8An0GAo2uI2x5pz0R4jUAaq94GoVRu
=Ii36
-----END PGP SIGNATURE-----

+1 and QFT. nanotube is a strong choice for arbiter

copumpkin

donator

Activity: 266

Merit: 252

I'm actually a pineapple

Quote from: ?? on ??

If I buy CDS from you, can I trade them ? Cool

Sure, if you can find someone to trade with. If this becomes "a thing", we'd probably want to agree on some standardized contract amounts and dates, though.

nanotube

hero member

Activity: 482

Merit: 501

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

I have provisionally agreed to be the event occurrence arbiter, subject to the creation of, and my agreement to, more specific definitions of credit events for the contract, which are currently being worked on.
-----BEGIN PGP SIGNATURE-----

iEYEARECAAYFAk90oroACgkQ5/k4vslVlLIahACdEZwW7CByJwETP58kX88HH5x6
yu8An0GAo2uI2x5pz0R4jUAaq94GoVRu
=Ii36
-----END PGP SIGNATURE-----

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

I haven't seen this link posted yet in this thread. Copumpkin wrote:

"Why you might want to sell Credit Default Swaps"
- https://bitcointalksearch.org/topic/m.826093

wachtwoord

legendary

Activity: 2324

Merit: 1125

lol he even allows the purchase of naked CDS.

I think the most secure default protection is the people loaning money to become so big that at all the loaners combined are pissed off enough to come and claim their money on default (or let a third party do that with some brutes).

Topic: Selling Credit Default Swaps on imsaguy (Read 6030 times)