The Bond system has been completed. As well as all the GUI for the debt systems (Until the new charting system in v1.21.)
The AI will now create bonds when it needs to finance a factory and can't afford it, as well to avoid bankruptcy and help with day to day operations.
The credit rating system was also slightly adjusted, calculations now favor Debt/Equity ratio and Debt Service ratios.
What does this all mean? Well Auto Manufacturing is a high debt industry. When a company like Ford needs to raise money but does not want to go to banks, it will issue what is called a Bond.
To put it as simply as possible a Bond is an "I Owe You." You would give Ford $1000 to buy a single bond. In return they will pay you a coupon (interest) every year on that $1000. Say the coupon was 10%, this would mean you would get $100 for every year you own the bond! After a certain amount of time (maturity) Ford would pay you back the $1000 (par value) it owes you.
Since these bonds can be staggered, companies tend to find themselves in a lot of debt before they go bankrupt. Using Ford as an example again, they have 4.64 times the debt to equity. And Ford isn't even anywhere near bankruptcy.
What does this have to do with the game? By leveraging the bond markets, both AI and players can generate funds needed to grow their companies and stay in business longer. Of course, there are risks. Once you have to start paying back those bonds you better hope you have the funds or can issue enough bonds to cover your par values. Otherwise it can be a fatal blow quickly to your company!
Currently I'm doing some play testing with the bonds, I hope to be done with balancing and making sure everything is good by tomorrow afternoon. Then it's off to working on the revised stock system.
-Bond System.
-AI uses Bonds System.
The AI will now create bonds when it needs to finance a factory and can't afford it, as well to avoid bankruptcy and help with day to day operations.
The credit rating system was also slightly adjusted, calculations now favor Debt/Equity ratio and Debt Service ratios.
What does this all mean? Well Auto Manufacturing is a high debt industry. When a company like Ford needs to raise money but does not want to go to banks, it will issue what is called a Bond.
To put it as simply as possible a Bond is an "I Owe You." You would give Ford $1000 to buy a single bond. In return they will pay you a coupon (interest) every year on that $1000. Say the coupon was 10%, this would mean you would get $100 for every year you own the bond! After a certain amount of time (maturity) Ford would pay you back the $1000 (par value) it owes you.
Since these bonds can be staggered, companies tend to find themselves in a lot of debt before they go bankrupt. Using Ford as an example again, they have 4.64 times the debt to equity. And Ford isn't even anywhere near bankruptcy.
What does this have to do with the game? By leveraging the bond markets, both AI and players can generate funds needed to grow their companies and stay in business longer. Of course, there are risks. Once you have to start paying back those bonds you better hope you have the funds or can issue enough bonds to cover your par values. Otherwise it can be a fatal blow quickly to your company!
Currently I'm doing some play testing with the bonds, I hope to be done with balancing and making sure everything is good by tomorrow afternoon. Then it's off to working on the revised stock system.
-Bond System.
-AI uses Bonds System.
"great writers are indecent people, they live unfairly, saving the best part for paper.
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski
good human beings save the world, so that bastards like me can keep creating art, become immortal.
if you read this after I am dead it means I made it." ― Charles Bukowski