The AI market works on bubble economics. It’s about stories and magic! Making financial sense, that’s for the old people now! Get with the program, granddad! But magic doesn’t happen. And it never …
  • ArchiteuthisEnglish
    1·
    5 小时前

    That’s interesting, thanks! Not exactly sure where the dc loans fit in the benefits vs contributions scheme, but I guess it’s important context to keep in mind if reading further into this.

    • BlaestEgnen@feddit.dkEnglish
      1·
      2 小时前

      The primary difference between a bond and a loan, are the installments. A loan will gradually be paid off, whilst a bond will pay interest yearly and then one installment upon expiration.

      So from a return perspective, they’re both having a fixed return and therfore fits defined contribution schemes nicely. As they can sort of guarantee they’ll have the money they’ve promised the pension holder 10 or 30 years down the line