Would anything work better than the PP in this situation?

[blackomen]

(Original post: http://www.analystforum.com/forums/investments/91325287)

You have $110 million in cash but currently owe  $100 million to a loan shark. The terms of the loan are:

No prepayments are allowed, even if you have more money than what's owed at that moment.

No periodic interest payments are required or will be accepted.

The loan shark will demand immediate and full payment (principle + interest) at any random date in the future (he'll consider nominal delays due to settlement, bank transfer of cash, etc. but he'll come to your house and want to see that you're selling your holdings and transferring the money on your computer.)  If full payment cannot be made, then you will face dire consequences no matter where you hide in the world.

The annual interest rate on the loan = Inflation_Rate + 2%.

The jobs you qualify for typically only pay about $100,000 a year.  You have no assets other than cash at the moment.

Assume none of the following are options:

- Killing the loan shark
- Negotiating out of the loan agreement
- Fleeing somewhere
- Getting a massive credit line
- Changing your identity
- Robbing banks, committing fraud, or engaging in any criminal activity to get the money needed to pay the debt.

[dualstow]

You have to avoid drawdowns AND beat inflation.
I think the answer is no, nothing beats the pp for this.

Maybe put some of the excess 10 mil into i-Bonds each year in case the loan shark asks for his money way down the road?

[k9]

Oh man, why did you accept such a deal