Sunday, September 05, 2010

How about this for a derivative product?

in the UK they are creating a social impact bond derivative tied to the performance of a non-profit; 1st instance: reduce the rate of re-offending by young prisoners. Private investors put up capital and get a return based on recidivism (between 7.5 - 14%). Big Society Bank needs for "social impact investments" to be classified as legitimate asset classes.

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