Chapter 866 18 billion U.S. dollars
“How much does Pacific Phase II Fund intend to invest now?”
“150 billion U.S. dollars, and it’s still growing.”
Xu Liang Weiwei Nod.
“In the second phase, we will raise US$30 billion, and US$24 billion will be spread out. The remaining US$6 billion will be used as an advance with our own money. Later, I will add more people to come over, and then withdraw the money. .”
Jiang Xiaoyang nodded, and she understood that Xu Liang would also use his share of 6 billion US dollars in exchange for other benefits.
“How are you going to invest these US$30 billion?”
Xu Liang has been thinking about the investment direction for a long time and has already made plans.
"Established Pacific Funds 5 and 6.
Added Fund 2, each fund is US$10 billion.
Fund No. 2 invests in commodities such as oil, iron ore, copper ore, and coal.
No. 5 Fund invests in gold, silver and other precious metal futures products.
No. 6 Fund invests in convertible bonds and corporate bonds of global high-tech companies. "
Although Jiang Xiaoyang knows a little about hedge fund investment, he is far from proficient, so he did not express any opinions.
"What about the investment period? ”
"This time the period is longer, and it will not be lifted until December 2008. You notify various investment institutions, and if they are unwilling, withdraw the funds."
The subprime mortgage crisis broke out, and the United States Flooding to rescue the market will cause global oil and gold to surge, and Xu Liang is waiting to eat this piece of fat.
At the same time, the global economic downturn caused by the subprime mortgage crisis has reduced the demand for commodities such as iron ore, copper ore, and coal, which in turn has caused prices to fall, so he has to ship in advance.
These layouts require a lot of energy from him, so he does not want to organize another round of fund-raising in the middle.
Just once and for all, extend the blockade period to three and a half years.
If you don't want to, just quit.
“Is three and a half years too long?”
Hedge funds rarely have such a long life span.
“The company is getting bigger and bigger, and there are more and more things going on. I don’t want to waste my energy on raising funds. By the way, has the financial report of Fund No. 2 been released?”
Jiang Xiaoyang nodded, stood up and took a stack of documents from the safe on his desk.
"Here."
Xu Liang took it.
Pacific No. 2 Fund, investment started in June 2003 and ended in June 2005.
In two years, with US$15 billion, five times leverage, and a ratio of 3:2:2:1.5:1.5, we invested in long futures in five categories: crude oil, iron ore, copper ore, gold, and silver. .
In two years, the price of oil has increased from US$32 per barrel to the current US$56 per barrel, an increase of 75%.
The price of iron ore has increased from US$30 per ton to US$69 now, an increase of 130%.
The prices of other copper ores, gold and silver are similar to those of oil and iron ore.
With the development of the global economy, the prices of international energy and commodities are also rising.
Taken together, the five major categories of commodities invested by Pacific No. 2 Fund have all achieved an increase of about 80% in two years.
Five times is 400%.
Pacific No. 2 Fund had a floating profit of US$60 billion.
This US$60 billion is deducted from the 35% capital gains tax, investment bank fees, loan interest rates, etc.
Pacific No. 2 Fund can get about 60% of the gross profit.
Then, half of the profits will be distributed to major GPs and investors.
The money that actually fell into Hanhua’s hands was approximately US$18 billion.
"In the end, only 18 billion was obtained out of 60 billion. The sharing of meat is really painful." Xu Liang said.
But the meat still needs to be divided.
If he didn’t think so, let alone 60 billion, he would probably be in the United States and be labeled as manipulating the market and disrupting financial order as soon as he got off the plane, just like that big guy in the currency circle. , first pay billions of dollars in fines, and then be squeezed out bit by bit.
Clean up your mood.
Return the information to Jiang Xiaoyang.
"Is the investment in subprime debt over?"
"It's over. We're working on the financial statements, which will be handed over to you along with Hanhua's half-year financial report."
Jiang Xiaoyang said.
Xu Liang nodded and asked, "Is there any response from Changyu Wine?"
"Not yet, but the Zhao family has already taken action, and Changyu Wine's share reform plan has been stopped."
"Haha, the Zhao family is good. They really do things after they get the money."
Jiang Xiaoyang smiled and said, "Should we cooperate?"
"Of course we must cooperate. You let Lao Wang In the name of Huaxia Liquor Industry, a merger document was issued, and the purchase price was set higher."
"Yes."
Jiang Xiaoyang nodded and handed over another document.
"This is the contract to acquire Fuhua Real Estate, take a look."
Fuhua Real Estate was originally affiliated with Xuanwu Real Estate Fund, a subsidiary of Hanhua.
The latter raised US$5.5 billion several times to invest in China’s real estate industry.
With the support of this abundant capital, Fuhua Real Estate has become China's top real estate giant through continuous mergers, acquisitions and investments in just a few years.
It is currently a real estate giant listed in Hong Kong with assets of nearly 120 billion Hong Kong dollars, debts of 46 billion Hong Kong dollars, and annual revenue of 18 billion Chinese dollars.
"The market value is not that long."
Xu Liang said.
At the end of last year, with the acquisition of Fuhua Real Estate by Sunco, the market value exceeded HK$70 billion.
Later, in order to enjoy the benefits of the appreciation of the Chinese currency, Hongyan Fund injected another US$2 billion into Fuhua Real Estate and continued to acquire land parcels sold by major real estate companies that were in operating difficulties due to the August 31 deadline.
Let Hongyan’s land bank exceed 30 million square meters.
At the same time, Fuhua has started more than 20 projects.
This series of good news caused the market value of Fuhua Real Estate to briefly reach 100 billion.
But the current market value is only about HK$90 billion.
"Dragged down by the domestic market. From the end of last year to now, the authorities have continued to suppress the real estate market. Now nationwide, the real estate construction rate has dropped by 30%.
Transaction volume has dropped by 20% .
The depressed market affected stock prices.
Moreover, if it weren’t for you, the second richest man, behind Fuhua, the market value would be even lower. "Jiang Xiaoyang said.
Xu Liang nodded and continued to read the information behind.
After the listing and capital injection from Hanhua.
Originally held by 'Xuanwu Real Estate Fund' The shareholding has dropped from nearly 100% to 63%
Based on the current market value of Fu Wah Properties and the exchange rate of the US dollar against the Hong Kong dollar, this stake is worth US$7.4 billion.
Compare $5.5 billion investment.
It has risen by 34.5% in two years.
On average, it is only 17.25% per year.
Although this rise is global, it is not much worse than Lao Ba.
But compared with the ultra-high returns of Hanhua hedge funds and equity funds, it seems not enough. Xu Liang calculated silently.
To turn Fuhua Real Estate into Hanhua's private property, it will require US$7.02 billion from Hanhua's own funds.
The reason why it is 70.2 instead of 74 is mainly because Hanhua’s investment needs dividends.
Return of $1.9 billion in two years.
When the return rate is less than 20%, Hanhua can only get 20% of the total floating profit.
That’s US$380 million.
After deducting this part, it is the actual money that Hanhua needs to spend.
After this payment, Hanhua’s shareholding in Fuhua will increase from the previous 17.15% to 80.15%.
The foundation has been laid for the privatization of Fuhua Real Estate.
But after finally going public, he has no plans to privatize it.
"Finish the matter of Fuhua Real Estate as soon as possible, and then sell off the Fuhua shares held by Hanhua little by little.
In two years, the shares we held Fuhua Real Estate’s equity will be reduced to 55%.”
Jiang Xiaoyang frowned, “Is it too much? Moreover, if our large-scale sale of equity is widely reported by interested people, Fuhua’s market value will be reduced. Seriously affected.”
“Have you forgotten the subprime mortgages in the United States? They are going crazy now. This mine will explode in at most two years.
If we don’t sell stocks immediately, our losses will only be greater. "
Jiang Xiaoyang's expression changed slightly. As the president of Hanhua, she certainly understands the changes in the U.S. subprime debt market.
Beggars and homeless people have several properties. This is really crazy.
“By the way, our cooperation with the Montes family, Goldman Sachs, and Morgan Stanley is over.
$50 billion in real estate-related 3B-rated subprime debt.
$62 billion in Class B and Class 2B subprime debt.
Currently all have been sold through their channels.
Deduct the 20% share promised to them, 35% capital gains tax, leverage interest, personnel and other expenses, as well as US$10 billion in capital.
We achieved a floating profit of US$44.6 billion.
After deducting 50% of the investors’ share, Hanhua achieved a net profit of US$22.3 billion. "Jiang Xiaoyang's eyes were bright and his tone was full of excitement.
"Including the previous US$18 billion in floating profits from the Pacific No. 2 Fund, we made US$40.3 billion this year."
Xu Liang said with a smile.
After Jiang Xiaoyang nodded vigorously, he looked at the man in front of him with admiration and said emotionally.
"Dear, you are the best financier in the world!"
With a laugh, Xu Liang grabbed the beauty's jade hand.
Wearing a cream-white long-sleeved T-shirt and a black one-step skirt, the dashing beauty sat down in his arms.
The left hand lifted up the smooth and shiny chin, and their eyes met.
“No matter how much money you make, it’s still not as good as a compliment from your wife.”
Slapping his hand away, Jiang Xiaoyang smiled charmingly.
“You will coax me.
However, there is something you need to deal with.
The Pacific 3 Fund will not mature until the end of next year.
So this time, our profits from subprime debt, plus US$10 billion in capital, are all kept on our books. How are you going to invest this capital of US$54.6 billion? "
Holding the beauty's slender waist, Xu Liang thought for a while.
"How many shadow funds do we control now? ”
"There are 14 companies, 6 in the United States, 4 in Europe, and 4 in Asia."
"It's still too few. This year it will be increased to 20."
Jiang Xiaoyang nodded.
“From now on, we will short U.S. subprime debt through shadow funds.
However, we will not short this year and next year, and will continue to do long.”
"Go long?"
"Yes. At present, the total value of CDs contracts in the US market has exceeded 500 billion US dollars, and the market has matured." Xu Liang affirmed.
In a booming market, you can make money by going long.
The booming development of the US CDS market cannot be separated from his contribution.
If he hadn’t collaborated with the Montes family, Goldman Sachs and Merrill Lynch to continuously package subprime debt and bring it to the market, the U.S. CDS market would not have developed so fast.
"What are you going to do?" Jiang Xiaoyang asked.
“Sell with your left hand, sell with your right, and make quick money.”
Xu Liang simply told his wife his money-making ideas.
The source of the subprime crisis is banks.
In order to make huge profits, use 20 or even 30 times leverage.
Assume that Bank A's own assets are 3 billion, and a leverage of 30 times is 90 billion.
In other words, Bank A uses 3 billion assets as collateral to borrow 90 billion in funds for investment.
If the investment profit is 5%, then A will get a profit of 4.5 billion.
Relative to A’s own assets, this is a huge profit of 150%.
On the other hand, if the investment loses 5%, then Bank A has lost all its assets and still owes 1.5 billion.
To put it simply, if you win the young model in the club, you will lose the Xiti Kensington Street household registration book.
Of course, it’s not like the Americans don’t know that it’s too risky to play like this.
Officials have even applied a lot of patches to financial institutions to limit the leverage ratios of financial institutions, especially banks.
But.
No matter how perfect the law is, there are loopholes.
The smart guys on Wall Street quickly figured out a way.
Use leveraged investment as "insurance".
This kind of insurance is called CDS.
For example, Bank A found Institution B in order to avoid leverage risk.
Institution B could be another bank, or an insurance company, or something like that.
A said to B, how about you insure my loan against default? I will pay you 50 million in insurance premiums every year for 10 consecutive years, a total of 500 million.
If my investment does not default, then you will get this insurance premium in vain.
If I break the contract, you have to compensate me.
A thinks, if I don’t default, I can earn 4.5 billion. If I use 500 million for insurance, I can still make a net profit of 4 billion.
If there is a breach of contract, there is insurance to compensate anyway.
So for A, this is a profitable business.
B is a shrewd person. He did not immediately agree to A's invitation, but went back to do a statistical analysis.
He found that real estate defaults occur less than 1% of the time.
If you do 100 businesses, you can get a total of 50 billion in insurance money.
(End of this chapter)