I know I've overdrawn this picture a little bit too much.

But this I just want to show you some data here.

You're not a homeowner until you don't have debt.

liquidate it.

And that makes sense, right?

There might be different debt holders who have different

The yield on the bond is 6 .

Perhaps you will be so good as to do the same for his creditors in Meryton,

Now what's different about them is what happens on the other side of the balance sheet and this is what I meant by them having different capital structures so let me draw the liability's side for both of these characters so let's do liabilities

So what happens when you go into bankruptcy?

They go to 0.

Diagonal Method

I said, who gets the money?

This is the debt, or the liabilities.

Bonds together with some money was stolen.

The money was stolen along with the bonds.

A good shot

So what happens is that the debtor stays in possession of the assets.

It was 1.6 million in bearer bonds.

Composition Guides

Interesting.

And they get paid first.

And because it's a junkier rating, no one is going to want to buy it.

And even the wild spiral keys in the vanishing point, directly below it.

I, uh, I was just going to say I've been cashing A lot of bonds lately, haven't I?

Do it anyway. Who's moving the bearer bonds?

And I think you'll get a sense based on where I took the 5 million out of, who gets the money.

So for example, if you by a well I'll just say a face value bond of, let's say it's a thousand dollars, and there's a thousand people who do that.

They serviced the loans.

Bonds, you become part lender to the company.

They said, wow, this is great.

Remember, this is the annual interest rate but this is an overnight loan.

Charles Whitman was his name.

And it's often, maybe this debtor right here, he'll hire one bank.

Set here the color used to draw composition guides.

It allows let's say this group of borrowers let's say this pool of borrowers right here actually didn't

So let's say that these are car factories and land and whatever else.

Morningstar type.

You could do it with corporate debt.

Oops.

Nevertheless, we will be eventually heavily rewarded from doing this.

This is better than buying treasuries.

Map author

Map Author

Now let's say it gets even worse.