The Economist featured an article discussing social impact bonds in Peterborough, UK and other financial innovations.

From original article:

"Peterborough is where the proceeds of the world's first "social-impact bond" are being spent. This instrument is not really a bond at all but behaves more like equity. In September 2010 an organisation called Social Finance raised GBP 5m (USD 7.8m) from 17 investors, both individuals and charities. The money is being used to pay for a programme to help prevent ex-prisoners in Peterborough from reoffending. Reconviction rates among the prisoners recruited to the scheme will be measured against a national database of prisoners with a similar profile, and investors will get payouts from the Ministry of Justice if the Peterborough cohort does better than the rest. If all goes well, the first payouts will be made in 2013."

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