Attention Economy


Friday, September 16, 2016

History Lesson – Long-Term Bonds

A fascinating piece from Stephen Mihm:
“In some cases, maturity dates on corporate debt reached so far into the future as to make them de facto perpetual bonds. The West Shore Railroad of New York issued a $1,000 bond that matured in the year 2361, which just happened to be the year its lease to the New York Central and Hudson Railroad Company expired.
And then there was the Elmira and Williamsport Railroad Company, which issued bonds in the year 1863 that it promised to repay in full on Oct. 1, 2862, or 999 years later. But the railroad only lasted a little over a century, closing down in 1972.  Investors who had bet on the long haul got stiffed.”