> So the issuer just pays interest forever until it happens to be paid off?
Well, by definition perpetuities are never paid off. You could just buy your debt back on the open market though. I'm not a lawyer, so IDK if there's any interactions with "Dead hand" rules in the area based on a brief review of wikipedia[1], similar to 99 year leases or whatever motivated this potential disaster[2].
Well, by definition perpetuities are never paid off. You could just buy your debt back on the open market though. I'm not a lawyer, so IDK if there's any interactions with "Dead hand" rules in the area based on a brief review of wikipedia[1], similar to 99 year leases or whatever motivated this potential disaster[2].
[1]: https://en.wikipedia.org/wiki/Rule_against_perpetuities [2]: https://www.latimes.com/business/story/2019-08-09/etf-spy-lo...