Chapter 721 Secured Debt
There is more than one way to get this score.
As we said before, among the 1,000 borrowers, 800 3A-level high-scoring users, plus 200 3B-level low-scoring users, if both parties are averaged, the average score of this asset pool will definitely be Meets the AAA rating requirements of Moody's and Standard & Poor's.
This is a huge loophole.
Can create huge profits for us. ”
Xu Liang's words were like the whispers of a devil, causing Montes and his son to breathe quickly.
My eyes were shining, my face was bloodshot, and my expression was full of excitement.
Xu Liang saw this, and the corners of his mouth curled up unconsciously, ready to add more fire.
“There are many low-scoring borrowers in the market, and we need to identify those borrowers with high FICO scores.
This is whether we can repackage 3B subprime debt and sell it successfully, and the key to earning high returns
So is it difficult to find these highly rated people?
It's actually easy.
The rating agencies also have a blind spot that they did not pay attention to, or did not pay attention to.
They don’t understand the difference between ‘thin paper’ and ‘thick paper’ FICO scores.
As the name suggests, a thin paper FICO score indicates that the credit history is very short and paper thin because the borrower has not borrowed several times.
For example, immigrants who have never defaulted on their debt repayments.
Because they never got a loan at all.
So usually have a very high FICO score.
So a nanny from Jamaica, or a strawberry picker in Mexico making $14,000 a year, with the desire to borrow $750,000, filtered through Moody’s and Standard & Poor’s models, would It becomes very useful from an operational perspective.
They got the house and we got the high FICO score.
So, we can easily harvest a large number of borrowers with higher FICO…. "
Before Xu Liang finished speaking, Chris Montes couldn't help it anymore.
"Dad, this is a huge opportunity, we... ”
Reed interrupted his son.
Looked directly at Xu Liang.
"How do you plan to cooperate?"
Looking at the fiery eyes of the father and son, Xu Liang knew that they had taken the bait.
This is normal.
Anyone with a normal mind and a certain understanding of the US financial market can't help but feel excited.
“Hanhua has no investment banking business. Originally, I planned to acquire an American investment bank to develop CDO bonds based on real estate subprime loans.
But for Helen, I'm willing to give in.
The Montes family comes forward to acquire an investment bank on Wall Street.
Hanhua provides the bonds, and you are responsible for packaging, grading and selling.
After success, Hanhua obtained 80% of the profits…. "
"No. ”
After quickly interrupting Xu Liang's words.
"We are responsible for packaging, grading and sales, but you only provide bonds. Why do you get 80%? We should get 80% of the income."
When it comes to interests, Reed. Montes instantly revealed the greedy nature of the old capitalists.
"That's right. We have done the most work and deserve the most benefits."
Chris Montes also echoed.
Xu Liang smiled lightly.
"Mr. Montes, please note that I am not negotiating with you. In fact, if it weren't for Helen's sake, you wouldn't even get 20%."
Reid Montes stared closely at the young man in front of him.
“Aren’t you afraid that I will spread your plan?
Or we can get rid of you and do it ourselves.”
"Haha, I'm really not afraid.
The reason is very simple.
I hold 80% of the US$50 billion of real estate-related 3B-rated subprime debt currently issued in the U.S. market.< br>
I also control US$62 billion in Class B and Class 2B subprime debt.
So, no matter who wants to do this business, they can’t avoid me.”
The reason why Xu Liang dared to disclose his action plan was because he had grasped the most critical thing in the plan-3B subprime debt.
Without this, it is like a gun without bullets, no matter how gorgeous it is, it is just a piece of scrap metal.
Of course, 3B-rated subprime debt is still being developed continuously.
But development takes time.
Another one, Wall Street is not a fool.
As long as you make a move, they will know your core operating ideas.
When the time comes, the market will instantly be crowded with competitors.
3B subprime debt will become a hot commodity. Who can compete with the five major investment banks with a century-old history and deep roots?
So Xu Liang is confident.
Picked up the teapot on the table and slowly poured himself a cup. After picking it up and taking a sip, Xu Liang looked at the greedy father and son opposite him with a smile on his face.
"Mr. Montes, Hanhua's money is not my own. It is invested by 1,590 rich and powerful people around the world, including the Bush family, Gates family, Roosevelt family, and Kennedy family, as well as investments from 137 institutions.
Whoever wants to cut off their financial path will step into the abyss.”
Reed Montes’ pupils shrank and his heart was shocked.
He had no doubt about Xu Liang’s words.
Hanhua itself contains amazing energy.
This is also what he is afraid of.
"Hahaha... Xu, you are indeed a real business genius. Helen is lucky to marry you, and it is also the luck of the Montes family."
Xu Liang smiled Said: "So, what's the result?"
"The 20% share is no problem."
"Dad..."
After interrupting Chris Monteith.
"I will arrange for the family trust fund to acquire an investment bank on Wall Street as soon as possible."
Seeing how sensible he was, Xu Liang smiled and said: "I'm waiting for your good news.
However, it is impossible for the Montes family to fully eat such a large piece of fat.
So I can only give you one-third of the share, and the remaining two-thirds will be given to you. Morgan Stanley and Goldman Sachs are responsible. "Xu, the Montes family is fully responsible for this transaction."
Reed Montes said quickly.
No one wants to share the fat in their mouth.
"Mr. Montes, are you sure you can withstand the pressure of the entire Wall Street?"
Xu Liang shrugged before the other party could speak.
"I can't bear it.
Not to mention I have other demands.
One third is already the biggest discount I can give you for Helen's sake.
Of course, you can also choose not to accept it.
As for the transaction approval of DreamWorks Animation, as long as I give a little share of Hanhua's hedge funds, I believe many people will be happy to help me solve this little trouble. .”
After taking a deep look at the man in front of him, Reed Montes smiled.
“I heard that Helen gave birth to a lovely child. I want to see my grandson.”
“I will take you there.”
Xu Liang stood up .
"Please."
Montes walked over with a smile.
Plenty of space for Helen and Christina to have separate rooms, study, and nursery.
Seeing Xu Liang coming in with his father and brother, Helen knew in her heart that the two parties had most likely finished talking.
She never showed up before because she didn’t want to make it difficult for Xu Liang because of her own reasons.
This firm stance undoubtedly amplified her favor among Xu Liangliang.
However, they are biological father and daughter after all.
Although she has a lot of dissatisfaction with the Reed and Montes families, family ties and blood ties are still unbroken.
Seeing them coming in, Helen also smiled and greeted them.
“Dad.”
“My little baby, I heard that you had a baby, so Chris and I came here to see you.”
"Thank you."
After a brief hug.
Everyone walked to the crib and looked at the sleeping little guy inside. Reid's expression became gentle.
"Oh, what a cute little thing. Helen, can I give him a hug?"
"Of course."
Helen leaned down, gently picked up the baby, and placed it in Reid's arms.
The latter hugged him with a smile on his face.
"Helen, he reminds me of you when you were a child, smart, beautiful, and had your own opinions."
As he said this, I couldn't help but feel emotional.
The best of his five children is Helen, but she is only a girl, and she is only the fourth.
It was impossible to pass over her two brothers and pass on the position of head of the family to her.
“I hope little Carlos can be more like his father, smart, strong, and become a respectable strong man.” Helen said.
Looking at the smiling Xu Liang next to him, Reed smiled.
“This child combines the excellent genes of both the Montes family and the Xu family. I believe he will have a bright future.”
Helen’s scrutinizing eyes were on the faces of her father and Xu Liang Scanned back and forth a few times.
I understand in my heart.
The conditions have obviously been met if the greedy father can take the initiative to praise him.
I couldn’t help but become curious.
Of course, she also knew that now was not the time to ask.
Dong dong….
There was a knock on the door.
“Come in.”
Xu Liangdao.
A female bodyguard opened the door and walked in.
"Sir, the master and the old lady said that lunch is ready. Please take your family down for dinner."
"I know, I'll go right away."
The bodyguard nodded and retreated.
"Mr. Montes, shall we go down?"
Hand the child over to Helen.
"Xu, as my son-in-law, you should call me by my name."
"OK, Reed. Can we go?"
Reed Montes smiled, turned and went downstairs.
After lunch and chatting for a while, Reid took his leave and left.
——
On the way back to the hotel.
"Dad, are you ready to promise him?"
"Do you want to refuse this huge profit?"
"Of course not, I think we can definitely strive for more."
< br>"How to fight for it? Fight with words? Or do you think our Montes family can surpass Goldman Sachs and Morgan Stanley?"
"Dad, in fact, we don't have to deal with Goldman Sachs and Morgan Stanley. It's enough to target Xu Liang.
And he is also a Chinese.
We just need to make some noise in the media to ensure that countless conservative white Americans will openly oppose his holding of Universal Pictures, and even Hongmeng’s development in the United States will be hindered.
While he is exhausted, we are showing the energy of the Montes family at the right time.
Promise him to surrender to us obediently. ”
This routine is also commonly used by American dignitaries to suppress foreign powers. Although it is crude, it is very effective.
Looking at his proud son, Reid couldn't help but feel disappointed.
"Is this a good idea that you came up with?"
Chris was not stupid either. One look at his father's face and he knew that he didn't agree with it, and his words changed instantly.
(End of this chapter)