Chapter 867 The Booming CDS Market
If one of the companies defaults, the compensation will be no more than 5 billion.
Even if the two companies default, they can still earn 40 billion.
Both parties A and B believed that the transaction was beneficial to them, so they immediately concluded the deal and everyone was happy.
Now Xu Liang’s Hongyan Fund is also doing CDS.
But he did not do real estate subprime debt.
Instead, we make CDs based on corporate bonds issued by top large companies in the United States.
The corporate bonds issued by these top 100 companies are generally rated 3A, and the annual handling fee is only 0.02%. Even if they are 2A or A, the highest handling fee is only 0.5%.
As long as you win the bet, you can make a lot of money.
And it doesn’t have to bear the notoriety of shorting subprime mortgages.
Let’s go back to smart A and B.
After B did this insurance business, C was jealous.
C ran to B and said, how about you sell me these 100 CDS orders. Each contract will give you 200 million, for a total of 20 billion.
B thought, it will take me 10 years to get my 40 billion, but now I can get 20 billion as soon as it changes hands, and there is no risk, so why not do it.
Therefore, B and C concluded the transaction immediately (equivalent to C receiving 30 billion insurance money and assuming insurance liability).
In this way, the CDS is divided into blocks of CDS.
Like stocks, it flows to the financial market and can be traded and bought.
In fact, after C obtained this batch of CDS, he did not want to wait 10 years to collect 30 billion, but put it up for sale with a price tag of 22 billion.
D saw this product and calculated, 40 billion minus 22 billion, there is still 18 billion to be earned.
This is an "original stock", not expensive.
Bought it immediately (equivalent to D receiving 28 billion insurance money and assuming insurance liability).
Once it changed hands, C made 2 billion.
Since then, these CDS have been speculated repeatedly in the market.
In just two or three years, the total market value of CDS has reached US$62 trillion.
In comparison, the entire U.S. mortgage market is only $2 trillion.
Under the control of greedy financial institutions, it was directly amplified 30 times.
This is the real cancer of the US subprime debt crisis.
Now Xu Liang plans to do B or C, acquire it and then sell it to make a profit on the price difference.
Listen to his strategy.
Jiang Xiaoyang understands that there is no problem with this money-making model.
but.
"The subprime debt market in the United States is now crazy. If we join in and fail to exit in time, we may suffer heavy losses and even lose all the money we have earned." Jiang Xiaoyang said seriously road.
The premium of 10 billion US dollars is only 5%, and it can earn 500 million US dollars in 10 years.
If you give us US$100 billion, you can earn US$5 billion in 10 years.
If you sell it and make half of it, it will be 2.5 billion US dollars.
But for this US$2.5 billion, it has to bear a loss of US$100 billion.
Once you fail to withdraw in time.
All profits earned by Hanhua’s six years of hard work must be filled in.
The risk is too great.
It was so big that Jiang Xiaoyang was frightened. Although she had confidence in Xu Liang, she would shake her head hard.
"Absolutely not, the risk is too great.
The U.S. subprime mortgage market has gone crazy, and we don't know when it will collapse, so we must never make such a high-risk investment." Jiang Xiaoyang said firmly.
Xu Liang sighed, he knew this would happen.
After all, except him, no one knew that the US subprime mortgage, which now seems to be crazy, would collapse in 2007.
Although he can force his way through, he will undoubtedly be at odds with Jiang Xiaoyang.
This is not what he wants to see.
There are many ways to make money, but if the tacit understanding between two people is broken, it will be difficult to get it back.
“Then buy stocks, especially technology stocks.
Although you can’t make a lot of money, if you add leverage, you can still achieve an annual growth of more than 20%.”
Before the subprime mortgage crisis, the global economy was developing rapidly, and the market value of all large companies was growing rapidly.
The difference is just size.
Jiang Xiaoyang agreed, glanced at the man next to him, and hesitated slightly.
“If you really plan to invest in CDS, it’s not impossible, but the amount cannot exceed US$10 billion.”
Xu Liang waved his hand, “As you said, the risk is too great. Money. We have already made enough, there is no need to take such a big risk."
"Then can we just go short? With the current situation of U.S. subprime mortgages, there may be a collapse at some point."
Jiang Xiaoyang continued.
“It’s not the time yet.”
Xu Liangdao.
It will take nearly two years for subprime debt to truly collapse.
If you join the game now, you will pay an insurance premium of 2% to 5% every year. Although it does not sound like much, if Xu Liang invests 100 billion US dollars, it will be 2 to 5 billion US dollars a year.
Too many.
After being rejected, Jiang Xiaoyang said nothing more.
……
Go home in the afternoon.
Looking at the old lady carrying the thermos bucket.
"Mom, what are you...?"
"I made some old hen soup for Bingbing. She just gave birth to a baby and needs to replenish her body."
"Mom, she has something over there. A professional nutritionist will provide balanced nutrition according to her physical condition every day, so don’t worry about it.”
“A nutritionist is a nutritionist, and I am a mother-in-law. If I don’t care, she will pick her up in the future. I understand." Wang Lingxiang said.
"Mom, as long as I am here, which of your wives dares to take care of you?"
"That won't work. What bothers me the most is saying one thing and saying the other behind my back." He waved his hand to interrupt Xu Liang's words, "It's getting late, I should leave, just in case Xiaoyang sees me again."< br>
Looking at her figure walking quickly outside, Xu Liang opened his mouth, sighed and shook his head slightly.
At this time, the father, wearing a brown undershirt, led his grandson in from the outside.
Seeing him, the little guy's eyes lit up and he started struggling in his grandfather's arms.
“Dad, hug.”
Xu Liang quickly stepped forward to take the child.
Rubbed his son's little face affectionately.
“Where is your mother?”
“I cooked chicken soup and sent it to Bingbing.”
After nodding his head clearly, “Did you say when you will be back? ?”
"I didn't say it. But I will definitely be back before dark. By the way, Dad. Where did you go with Yangyang?"
"You went to the alley to chat. It's rare to come back and talk to some old buddies." "
"Nacha, you're not that innocent, are you?"
The father nodded unabashedly.
“Old Liu Tou from the alley in front used to say that I was a bad chess player when I played chess. When I went to Singapore and Xiangjiang before, I hired a teacher to teach me how to play chess.
Feeling that your chess skills have greatly increased, of course you have to regain your position. "
A look of pride appeared on his face.
"I beat him for five rounds this time, and my face turned red when I saw the old guy, haha... ”
Xu Liang shook his head.
Old kids, old kids, the older they get, the more stubborn they become, and the more they care about petty disputes.
After laughing for a while.
"Liangzi, Kaiyue and Yuanbao came to the capital?"
"How did you know?"
"I called Yuanbao in the morning and he told me. ”
“Yuanbao still calls?”
"Of course, my grandson is smart and can learn it with just a little instruction... I want to ask you, has Yuan Bao come to the capital?"
"Didn't your grandson tell you?"
"Hurry up, are you looking for a beating?" Dad glared and raised his hand.
This posture has not changed at all from the way he beat himself when he was a child.
"Come, come. It's in the yard behind Sixi Tower. If you want to have a look, I'll ask the driver to take you there tomorrow."
Xu Liang said quickly.
"What are you doing tomorrow? You call the driver now to take me there."
"My mother is not at home. If you leave, who will watch Yangyang?"
"Isn't it you?"
Xu Liang said confidently, "I have to go to work.
Dad, it won't take more than half a day."
Dad hesitated for a moment, but nodded.
"By the way, Liangzi. In a few days, your uncle's family in Quancheng will come over. You can make some arrangements."
"What are they here for?"< br>
"What else can we do, visit relatives."
"Tsk, tsk, I have never seen them come to our house to visit relatives in my whole life. But the visitors are guests, and his family has been found by Gangzi We must treat this person well both emotionally and rationally."
Xu Yongpei breathed a sigh of relief.
He was really afraid that his son would not like to see others.
"Don't worry about this. I'll have someone find a better hotel for them to stay in."
"Hotel? There are so many empty rooms in the house. It would be great to let them stay at home and save money."
"The house only has rooms in the backyard, and the front and middle yards are occupied by bodyguards and servants. I don’t want outsiders to live in our backyard.
Okay, let’s do that.”
Interrupting Dad.
He will not compromise on this.
The family in Quancheng was a relative to Dad, but to him, they were completely strangers he had never met before.
Let strangers live in your home?
How is that possible.
Seeing his son's insistence, Xu Yongpei opened his mouth and said nothing more.
"By the way, Dad, I'm going to Europe on a business trip in a few days. I'm afraid it will be a long time before I can come back. When the Quancheng family comes over, you can decide what to do. What to eat and what to drink, you can make arrangements." .”
"Going to Europe for a business trip? When will you leave?"
"The day after tomorrow."
"So urgent?"
"Is it urgent? I have made arrangements half a month in advance. Yes, I just never told you.”
“Daddy, donkey; daddy, donkey.”
The little guy, who was bored listening to the two people talking, began to struggle and make a fuss.
"Donkey? What donkey?"
"Fish! There's a donkey there, what kind of ears." He took the little guy over and said, "Let's go, grandpa will take you outside to see the carp."
Watching the old and the young go away, Xu Liang came to the study on the second floor.
Start packing some documents.
Although he won't stay in Europe for too long this time, he will go to the United States after leaving Europe, and then transfer from the United States to Japan. It will be almost Chinese New Year when he returns to China.
So, you must bring some necessary information with you.
At half past six in the afternoon, I came back.
Looking at the expression on her face, she was obviously very happy.
Jiang Xiaoyang came in a few minutes later than her.
After the family had dinner and chatted for a while, they left.
Xu's father, Xu's mother and the family's nanny live on the first floor, while Xu Liang and Jiang Xiaoyang live on the second floor.
Dong dong….
There was a knock on the door.
“Come in.”
Wearing a loose purple lace silk nightgown, with long hair shawl, Jiang Xiaoyang walked in with outstanding grace.
She is 173cm tall. Although she is a mother who has given birth to a child, her figure is still slender and her bust is also quite plump.
With light makeup on his face, he no longer had the strength and sharpness he had in the company, and his whole person looked noble and elegant.
Wearing black transparent stockings on the calves exposed outside the skirt.
Purple and black complement each other, and there is a hint of temptation in the mystery.
Meeting Xu Liang's gaze, he placed the cup in front of him.
"I made the jasmine tea for you. I added a little honey to it. You can try it."
Xu Liang nodded and took a sip.
“The sweetness of honey suppresses the astringency of jasmine, which is great.”
“Just like it.”
"Of course I like what you make."
"I have something here that you like more."
"What?" Xu Liang asked subconsciously.
Jiang Xiaoyang smiled charmingly and untied the thin straps on her silk pajamas with her bare hands.
The silky fabric slides quickly to both sides under the action of gravity.
The scenery inside also appeared in front of Xu Liang without reservation.
How to say it?
Looming and full of temptations.
Jiang Xiaoyang, wearing sexy lingerie, walked over on cat steps and sat directly on Xu Liang's lap, his beautiful eyes flashing.
Slender fingers drew circles on his chest.
Words tempt.
"Tang Yan is in the bedroom next door, do you want to come?"
Xu Liang directly expressed his attitude through actions.
Pick up the beauty and run towards the next door.
Pushing the door open, Tang Yan is indeed there.
Wearing red sexy underwear, she and Jiang Xiaoyang stood together, complementing each other, which was simply criminal.
Nothing to say.
Xu Liang directly used his eighteen martial arts skills to serve the two beauties.
It's a pity that even if the two of them join forces, their endurance attributes are a bit inferior.
Halfway through the eighteen martial arts, the two of them couldn't stand it any longer and surrendered directly.
Xu Liang no longer tolerated it and directly gave his energy to Tang Yan.
This time he was very excited and had a high probability of winning the bid directly.
After simply washing up in the bathroom, I went to the bed and lay down.
Holding the beauty to his left and right, his super resilience has allowed him to surpass the sage mode.
"Why are you so positive today?" Xu Liang turned around and asked.
"You are going to Europe soon. We won't see you for a long time. Of course I have to satisfy myself first." Jiang Xiaoyang said.
"Haha, not necessarily. You will be punished if you don't tell the truth."
Pinched at the center of the circle of the car light.
Jiang Xiaoyang trembled, "No, I said. I vetoed your investment plan during the day. I'm afraid you won't be able to think about it, so I'll enlighten you at night."
Xu Liang knew that she was talking about vetoing his own investment. The thing about American CDs.
"I like this mode of enlightenment and will continue in the future."
Jiang Xiaoyang rolled his eyes at him and turned to chat with Tang Yan across from him.
As they talked, the two people, who were already exhausted, quickly fell asleep.
Xu Liang is very energetic.
My mind is also very empty.
Subconsciously thinking about the next trip.
Time passed little by little, and he fell asleep unconsciously.
(End of this chapter)