Originally Posted by maxtower
Another funny thing about this one is some folks are offering pass through bonds for this where they are personally guarenteeing a 25% return of principal in the event of default.
And even 100%, very suspicious imo. I think those are a terrible deal because people re believing that guarantee and bidding the bonds up to a point where you are only getting like 4% and a large chunk of what you have to pay isn't covered by the insurance anyway.
For example, the face value is 1BTC so it pays .07 each week, but since there is supposedly no way to lose people bid it up to 1.7. Now you are really only getting .07 for having 1.7 out there and only 1 of the 1.7 is covered by the issuer if Pirate defaults. So it's more like a 58% insured bond that pays 4.1% interest and that's if you count the insurer as 100% honest.
I stay away from the whole thing.