Your2ndPlace

Yeah, that's right:

Submitted by: World Stock Exchange (WSE)
Date: August 08, 2007

Ginko Perpetual Bonds (GPB) has resumed trading and the bond split has been completed.

If you're wondering about the bond split, that started on August 6th (release here).

Given all the eyeballs on Ginko Financial, it seems that the split (every bond is now 100 bonds) demonstrates that Nicholas Portocarrero believes that the split will allow for a greater return as faith in the bond increases. It's hard to say how faith wouldn't increase given the issues Ginko is having these days - faith is at a low. While liquidation of KCG holdings is apparent, it does seem that Ginko got trapped, sort of like the monkey trap used in Africa, where a monkey believes a nut in the hand is worth more than a bottle on the arm.

Given the circumstances, though, it is not hard to draw a parallel between 'perpetual bond' and the Holy Grail of engineering, perpetual motion. A perpetual bond is a bond with no maturity date, and which pays coupons (dividends) for its lifetime. The current situation with Ginko Financial demonstrates a lack of liquidity... but investments don't seem to indicate that they can pay a 0.1% rate of interest per day.

But what do I know? Philip, He-Who-Rules-SecondLife, says Ginko is more transparent than companies in real life. I suppose the comparison is to Enron.

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