1. WHAT THE FUCK IS BOND!? 007?
1.b It's loan, or err debt. Basically, when you use your making a loan, you're giving away bond. Yes, you as the borrower, are the issuer of bond.
1.c What? So banks can sell the debt I owe them to another party???
1.d Yes, you used to owe the banks, now you owe bond manager.
2 Okay, how does bond price goes up?
2.b Yield, interest rate, maturity date, it's complicated- I'll at least gonnahafta make this list go up to 2.z.z for this. BASICALLY, the higher the rate, the cheaper the bonds.
3 Then what the fuck is Sun and Jon doing?
3.b They are short selling the bonds to foreign banks. Basically, they are selling "SECURITY", and they are paying liability as long as it's under estimate.
3.c Analogy; Jon is the dealer and the foreign banks are the player in this game of blackjack.
3.d Each bank paid in their 500Mill chips. They're hoping for a blackjack, if not they'll keep drawing until they BUST!
3.e BUT, we know damn well that Jon is cheating and is giving himself a king and an ace because he fucking knows the future.
3.f The interest rate is going to increase to 300%, those bonds will fucking crash and burn.
3.g Because it went over their estimate (100%), they don't have to cover the liability.
3.g They sold the bonds for gold, can buy them back cheapo.
4. Yes, they'll succeed again. Because plot armor obvs.