Rodrigo Bazaes

February 11th

Finance Interactive v0.2 is Released

Click Here to try it now (it's free, only your email is required).

Summary

Version 0.2 brings the world of corporate bonds to the simulation. No more "boring" government bonds!

Whether you want to speculate in junk bonds or rely on a more steady source of income, corporate bonds allow both corporations and the player to diversify their strategies.

Main Features

• Companies can issue bonds (once they reach a minimum market cap of $5B) with maturities ranging from 1 to 100 years.
• The computation of the bond yield now depends not only on the credit rating but also on how long the bonds are due in the future. In general, the longer the time to redeem the bonds, the higher the interest rate bondholders will demand.
• Non-government bonds also introduce a risk of insolvency for the player. In short, the worse the quality of the bond, the more capital will be required by regulators.
• More nuanced bankruptcy simulation. When the player holds bonds in a company that is about to go bankrupt, they may decide to try to get as much cash as possible from a liquidation or perform a debt/equity swap. In short, you convert debt into (equivalent) equity, so the debt is forgone, and bondholders become equity investors. You will receive an email in your inbox requiring immediate action.
• Introducing duration of assets and liabilities. This is a rough measure of how far in the future the cash flows of an asset or liability are. If the duration of the assets is too low compared with the duration of liabilities, you are paying an extra premium in interest rest. In the opposite case, you may risk insolvency. Thus, it is always a good idea to try to match those numbers.
• All the features are already included in v0.1.1 and v0.1.2.

Note: Previous saves are not compatible with this version.

Coming Next

• Implementation of dividends and buybacks.
• Mergers.
• Anti-trust regulations.
• Economy indicator that will affect the company's performance.
• Integrate the game with a launcher.
• Check the Roadmap for a full list of what's coming.