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__initbrian__ | 5 years ago

What actively used financial instrument today has the longest time horizon? 100 years?

* sports stadium construction loans UC Berkeley $443 million by 2112

https://www.bloomberg.com/news/features/2017-01-04/college-f...

discuss

order

semi-extrinsic|5 years ago

There have been instances of 1000 year (millennium) bonds, such as Danish energy company Orsted in 2017, Canadian Pacific Corporation in 1883(!), etc.

100 year (century) bonds are a bit more common - Disney issued a century bond in 1993, for instance. Argentina (!) issued a century bond in 2017, which it defaulted on last year, leaving creditors with around 55 cents on the dollar.

In general, long term (implicitly high risk) bonds become attractive in low yield environments such as we had been in for a couple of years up until the absolutely humongous amount of stimulus triggered by the current pandemic.

daneyh|5 years ago

Most equity/preferred shares are considered perpetuities (i.e as long as the company is in business)

There are many many perpetual bonds still being issued today however they tend to be 'callable' at the option of the issuer ...most after 5/10/30 years, if they aren't called then they maybe called on the same date every 5yrs or so (so I don't really count them as they aren't really 'forever'.

Oxford and Cambridge Universities in the UK have recently issued 100 year 'Century' bonds in GBP. Thats the longest i've seen recently (I cover EUR/GBP bond markets at work)