text: I would love to be your investment manager if you believe the BS they are spewing.  The Perm Fund has only earned 6.4% over the last 5 years, and 1.35% over the last 12 months. So if we had those 5% bonds outstanding, we would have made 1.4% over the last 5 years, and lost 3.65% over the last year. Again, the only thing you guarantee with POBs is what you have to pay bondholders.
  
  Financial accounting 101 tells us that, unless you have a fixed rate security that is guaranteed by the US Gov and you hold it to maturity, your future earnings are anything but certain. So a snake-oil salesman pitching an 8% return on our investment is a liar. 
  
  Now, if the bankers are so certain we can earn 8%, perhaps they would be willing to put that in writing and put their balance sheet at risk--like they are asking us to do. I am confident you would see the backside of their $2k Brooks Brothers suits heading out the door if you proposed that clause.