Bitcoin Forum
December 09, 2016, 12:25:28 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: OTC Credit Default Swaps  (Read 1006 times)
copumpkin
Donator
Sr. Member
*
Offline Offline

Activity: 266


I'm actually a pineapple


View Profile
January 19, 2012, 12:17:55 AM
 #1

I was wondering if anyone had considered CDSes on loans around here. To prevent fraud, we'd probably need to verify that any buyers are known, reputable members of the community, or they could someone could ask for loans under one identity and buy a CDS under another identity, then disappear/default and make money twice.

There are also other ventures that people could buy CDSes against. bitscalper or even larger bitcoin enterprises come to mind. Shades Minoco? It could give investors "insurance" against bad shit happening there.

Given how risky this market is, anyone selling CDSes could make really good money, too. But again, reputation would be important as the potential losses could be quite large. And of course, it'd be tricky to figure out a "right" price for this stuff, but should definitely be possible.

Anyway, it was just a random idea, and I wanted to see if people had any thoughts on it Smiley
1481243128
Hero Member
*
Offline Offline

Posts: 1481243128

View Profile Personal Message (Offline)

Ignore
1481243128
Reply with quote  #2

1481243128
Report to moderator
1481243128
Hero Member
*
Offline Offline

Posts: 1481243128

View Profile Personal Message (Offline)

Ignore
1481243128
Reply with quote  #2

1481243128
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481243128
Hero Member
*
Offline Offline

Posts: 1481243128

View Profile Personal Message (Offline)

Ignore
1481243128
Reply with quote  #2

1481243128
Report to moderator
imsaguy
General failure and former
VIP
Hero Member
*
Offline Offline

Activity: 574

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


View Profile WWW
January 19, 2012, 12:19:54 AM
 #2

I like it.

Coming Soon!™ © imsaguy 2011-2013, All rights reserved.

EIEIO:
https://bitcointalk.org/index.php?topic=60117.0

Shades Minoco Collection Thread: https://bitcointalk.org/index.php?topic=65989
Payment Address: http://btc.to/5r6
ineededausername
Hero Member
*****
Offline Offline

Activity: 784


bitcoin hundred-aire


View Profile
January 19, 2012, 12:20:43 AM
 #3

I've considered it before, and it would be a good idea.  I don't know how to price them, so I haven't dabbled in it.

(BFL)^2 < 0
imsaguy
General failure and former
VIP
Hero Member
*
Offline Offline

Activity: 574

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


View Profile WWW
January 19, 2012, 12:24:26 AM
 #4

I've considered it before, and it would be a good idea.  I don't know how to price them, so I haven't dabbled in it.

You'd need to consider several factors and come up with some sort of scale:

1) How long of a term?

2) How much is it for?

3) Who is it? What is their reputation like?

4) What are they using the loan for?

5) How reasonable is their method of repayment?

6) What is the overall btc market doing?

Coming Soon!™ © imsaguy 2011-2013, All rights reserved.

EIEIO:
https://bitcointalk.org/index.php?topic=60117.0

Shades Minoco Collection Thread: https://bitcointalk.org/index.php?topic=65989
Payment Address: http://btc.to/5r6
pirateat40
Avast Ye!
Sr. Member
****
Offline Offline

Activity: 378


"Yes I am a pirate, 200 years too late."


View Profile WWW
January 19, 2012, 12:25:21 AM
 #5

I would insure people that I have on my list. Smiley

copumpkin
Donator
Sr. Member
*
Offline Offline

Activity: 266


I'm actually a pineapple


View Profile
January 19, 2012, 12:29:13 AM
 #6

I've considered it before, and it would be a good idea.  I don't know how to price them, so I haven't dabbled in it.

It'd be interesting to see what some of the creditors around here would be willing to pay for insurance. Or what speculators would be willing to pay to bet on someone's illegitimacy Smiley

Other open questions would include whether we want to make the open CDS contracts public, as an additional measure of risk for potential lenders evaluating a deal. I'm leaning towards "no" on that, but I guess it'd be up to individual CDS sellers. I'd expect GPG contracts to be crucial if the agreements are to be private.
pirateat40
Avast Ye!
Sr. Member
****
Offline Offline

Activity: 378


"Yes I am a pirate, 200 years too late."


View Profile WWW
January 19, 2012, 12:37:20 AM
 #7

I've considered it before, and it would be a good idea.  I don't know how to price them, so I haven't dabbled in it.

It'd be interesting to see what some of the creditors around here would be willing to pay for insurance. Or what speculators would be willing to pay to bet on someone's illegitimacy Smiley

Other open questions would include whether we want to make the open CDS contracts public, as an additional measure of risk for potential lenders evaluating a deal. I'm leaning towards "no" on that, but I guess it'd be up to individual CDS sellers. I'd expect GPG contracts to be crucial if the agreements are to be private.

Maybe its time for a true Bitcoin Credit Bureau.

vuce
Sr. Member
****
Offline Offline

Activity: 476


View Profile
January 19, 2012, 12:40:28 AM
 #8

I think that's a great idea. Let's do it!  Grin
teek
Hero Member
*****
Offline Offline

Activity: 664


ASICMINER Official Canadian Distributor


View Profile
January 19, 2012, 12:44:24 AM
 #9

need something with an elected board of directors

imsaguy
General failure and former
VIP
Hero Member
*
Offline Offline

Activity: 574

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


View Profile WWW
January 19, 2012, 05:16:37 AM
 #10

need something with an elected board of directors

dibbs on chairman/president/executive director/ceo/managing partner

Coming Soon!™ © imsaguy 2011-2013, All rights reserved.

EIEIO:
https://bitcointalk.org/index.php?topic=60117.0

Shades Minoco Collection Thread: https://bitcointalk.org/index.php?topic=65989
Payment Address: http://btc.to/5r6
DannyM
Sr. Member
****
Offline Offline

Activity: 275



View Profile
January 19, 2012, 06:09:50 AM
 #11

need something with an elected board of directors

dibbs on chairman/president/executive director/ceo/managing partner

witnessed.
PatrickHarnett
Hero Member
*****
Offline Offline

Activity: 518



View Profile
January 19, 2012, 07:55:33 AM
 #12

Like many "markets" it's starting to sort itself out with a few early adopters and people doing things.  Working on building up my loan portfolio because it is a worthwile service and while CDS might not be the right instrument, there is a fair degree of risk involved. 

Posting to keep up to date and expressing an interest given the other names in the thread so far.
vuce
Sr. Member
****
Offline Offline

Activity: 476


View Profile
January 19, 2012, 11:38:37 AM
 #13

I've considered it before, and it would be a good idea.  I don't know how to price them, so I haven't dabbled in it.

You'd need to consider several factors and come up with some sort of scale:

1) How long of a term?

2) How much is it for?

3) Who is it? What is their reputation like?

4) What are they using the loan for?

5) How reasonable is their method of repayment?

6) What is the overall btc market doing?

We should apply some game theory in order to get the general idea about those questions. It's been a long time since I've had anything to do with it, but I would look into it if there's interest when I get the time.
Fiyasko
Legendary
*
Offline Offline

Activity: 1428


Okey Dokey Lokey


View Profile
January 20, 2012, 03:38:18 AM
 #14

need something with an elected board of directors

dibbs on chairman/president/executive director/ceo/managing partner

witnessed.
Stop putting those fucking troll posts up, All your fucking doing is spamming for a free post count, What you say has almost No relevance to the topic, You could walk in and say "witnessed" to almost Any fucking thread.

in ref to OP, I think it'd be cool if we could somehow pull/merge/import all the OTC ratings into this new possible system, So that it doesnt start out empty, Giving it a nice kickstart

http://bitcoin-otc.com/viewratingdetail.php?nick=DingoRabiit&sign=ANY&type=RECV <-My Ratings
https://bitcointalk.org/index.php?topic=857670.0 GAWminers and associated things are not to be trusted, Especially the "mineral" exchange
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!