The Rise Of ‘Soft’ Prostitution
By Tyler Durden
Submitted by Marcus Williamson via Medium.com,
You may have seen the adverts, like the one above, or the headlines:
‘A quarter of a million’ UK students now using sugar daddies?—?BBC
Meet the sugar baby who’s had 10 sugar daddies – and has found love with one?—?Mirror
Things Are Thriving In The “Modern Hooker Economy”?—?Zerohedge
For those of you who aren't aware of what is going on here exactly, well let me cease your virginity on the matter.
This will be a non technical, yet comically financial style review of the rapidly growing industry, the areas which will be covered are the following:
1. The market securities (Students)
2. The market participants (Old men)
3. The market exchange (SeekingArrangements)
4. The market regulations (SeekingArrangements Blog Tips)
5. The effects of the marketplace on society (Why this is bad…)
* * *
1. The Market Securities
The marketplace has several asset classes ranging from single mothers to males, but more recently a new asset has been added.
Students
Students differ somewhat to existing securities due to their inherently different risk profile. Said differently, this is how much they cost compared to what they can in theory ‘deliver’ to the purchaser.
The method on which they have arrived in this marketplace is also different, they have been cornered, and now are being exploited.
Without further ado, let me introduce the asset class formally:
Sugar Babies, Female
A sugar baby
These securities are the supply element of the marketplace. There has been a recent spike in supply with over 250,000 UK students recently joining. Currently the most active tranches (Universities) can be seen below:
The fresh inflows are quickly assimilated into the marketplace, thanks to near insatiable market depth. The young, high yield securities are then bought, consumed, transferred between their counter-parties, then discarded (usually, but not always).
Sugar Guide for new Babies
They will typically set the buyer back £600-£2000 per month. Securities (Students) which have recently had an IPO (they signed up to a sugar daddy platform), can often be purchased for below intrinsic value (they don’t know how much money to ask for). However although an enhanced entry opportunity is present, they carry an unrated risk profile.
2. The Market Participants
The solid backbone to the marketplace; providing great market depth and consistent demand. The market participants are typically male, ranging from 30–50 years in age, with a dash of social instability. They are called Sugar Daddies.
Sugar Daddies
A not so gentle Gentleman
These form the demand within the marketplace; the counter-parties to Sugar Baby securities. They look to strike an ‘arrangement’ if the securities features fetch the right price.
Their investment profiles (desires) are clearly defined, and they look to acquire a portfolio of as many securities as needed to fit their risk / reward ratio.
However, Sugar Daddies have been known to crowd securities, forcing valuations higher. This often leads to a undesired …read more
Source: The Rise Of ‘Soft’ Prostitution
