What will be the value of those shares in 6 months? Who really knows. Would you accept them as collateral for a six-month loan?
The shares may start trading at 40 to $43. If the insurer thinks that will decline 80 percent in 6 months then it will not happen. Most insurers understand there is risk in every transaction. He can also collateralize the issuance with some of his real estate holdings as backup collateral to the securities.