Rebirth 79: I opened a bank in the United States

Chapter 386 Debt Securitization and Fund Share Securitization

"Don't! Save yourself, the situation on Douglas's side has just improved a bit now, so don't go wrong. I'm not talking about this one thing. For example, debt securitization? I don't know how to do it, but I have the idea. Yes! At that time, you can learn more about this aspect, if not, you can also call and chat with Julian to see if it can be operated."

Debt securitization can be said to be the chief culprit of the 08 subprime mortgage crisis.

It is impossible for Carter not to have heard of the great reputation of this thing.But what he knows, that is, he has heard
What is it, how to operate it, and whether it is compliant. Sorry, I don’t know!

But in many cases, ideas are often more important than execution!For example, now, when he hears the terms debt and securitization, Goodman's eyes twitch:
"You mean to treat a certain debt as a commodity, no, it is an asset certificate that can generate income and sell it in the securities market?! Is this possible? Isn't it illegal?"

"I just don't know if the current law allows it or not!"

Carter waved his hands helplessly. If he knew how to operate this thing, I wouldn't even discuss it!

But if you don’t know how to operate, you don’t know how to operate, but Carter can understand the logic of this gameplay after planning HT’s IPO:
"But if you're just talking about logic, it should be feasible! Think about it, is the basic condition for securitization financing that the underlying assets can generate predictable and stable cash flows? Just like ordinary company stocks, this stock is against the underlying The underlying asset is a certain company, right? After the company makes a profit through operation, there will be predictable cash income.”

"Doesn't debt also have this feature? For example, a one-million-dollar debt with a ten-year period and an annual interest rate of 10%. Then this one-million-dollar debt, without considering the reduction of the principal, should be able to generate stable income every year. 100 dollars in income. Can I think that the 10 dollars in interest income is earned through the 10 million dollars in underlying assets? It should be understood in this way?"

"So under this assumption, if I treat this one million dollar debt as a stock to operate. Assuming a total of 10 shares are issued, then each share can get a pre-tax income of $1 per year. Ten years is 10 shares. U.S. dollars. If the issue price is 3 U.S. dollars, 10 shares will be listed, and 30 U.S. dollars can be raised. Although we have lost future interest income, we have directly obtained 30 U.S. dollars in cash, and we have saved nearly ten years of time cost, and passed on the risk of bad debts. You... why are you looking at me like that?"

Following the poor debt securitization content in his memory, combined with some common sense of the stock market that he had learned before, Carter, who was doing logical deduction, suddenly found that the vehicle had stopped on the side of the road at some time.

Goodman beside him was staring at him with a pair of big eyes like copper bells.
"How the hell did you come up with this game?"

Goodman roughly calculated the current loan scale of Black Bank in his mind.Even if it is a 10:3 debt securitization, if it can be done this way, just the existing debt scale can raise more than 600 million U.S. dollars?At the same time, it also transferred the risk of bad debts to the leeks in the securities market.
When the housing loan is finished, it will be nearly [-] million US dollars.With the addition of the two, more than [-] million U.S. dollars in development funds have been added out of thin air? !
It's just that the increase in callable funds is okay. The scary thing is that in this way, Black Bank will not have to worry about bad debts on these loans at all.
just
"Why didn't you think of it before? Forget it, if you knew this game before, you might not have the current HT. HT is very strong now. By the way, this is for you. You can read the evaluation of the Wall Street Journal: The galloping white horse is coming to Wall Street!"

"When you go public next year, your value is estimated to double. Tell me, how about our bank investing in some HT in advance?"

"It depends on the situation. I don't plan to have a B round. Let's wait until the cash flow in the bank is sufficient. Isn't the reserve ratio going to be raised soon? It doesn't really matter. I can't vote for HT. I have other goals. !"

Carter shook his head and vetoed the Wall Street Journal handed over by Goodman.

As for why I didn't think of this idea before, to solve the first bad debt crisis.Isn't that completely ignorant?
Although I still have a half-knowledge now, at any rate, my understanding of the stock market is not at the same level as that of me when I first traveled!

Now I know the general logic, but at that time, I only knew the term.
Can this be the same? !
"Okay, then I get it. By the way, this debt securitization... are you going to do it?"

After restarting the car, Goodman's idea came to this new thing.

"Not sure, let's discuss it after we go back! You forgot what we just said, plans and goals?! Since we want to do it, we have to do it well. Let's make a good development plan first, debt securitization, in the end It’s just a tool. If we need it to achieve our goals, we will release it and try to implement it. If we don’t need it, let’s put it aside for now. Anyway, it’s right now. There should be no debt securities products on the market now, right? I don’t remember seeing it or hearing it mentioned in Tennessee a few months ago, or in New York last year.”

"That's right, tools can't guide our behavior. But what you said made me curious. Do you have any new ideas in your mind? Hurry up, let's hear it!"

Driving on Route 23, Goodman, intrigued by debt securitization, looks like a health care practitioner.I found a beautiful and perfect technician, but in the end, he just fucked like a plain one.
Desire has been aroused, since you can't touch this, how about another one?There is always someone who can play dirty, right? !

"Other .ETFs?"

"ETF? What is this?"

"I don't know what it is, it seems to be related to index funds"

Carter fished his head.

A bad old man like Goodman is very bad. Isn't this making things difficult for me?

As a non-financial practitioner, the little knowledge I have in my stomach is almost emptied.
"???"

Carter thinks Goodman is bad, and Goodman thinks Carter is ridiculously bad at this time.What do you mean don't know? !
If you don’t know, the abbreviation of ETF has come out, don’t you know what it is? !You just don't want to say it!You just don't believe me Goodman!

"You! You don't know, so why are you mentioning it?!"

Swallowing the growl that slipped to his mouth, Goodman decided to test Carter's bottom line in a more euphemistic way.

"Isn't that what you're asking? Hey, I'll go to Boston or New York when I'm free, and talk to Mr. Bogle. He seems to be playing index funds. If I don't understand, I can learn from him!"

"Anyway, anyway, this is also a securitized product. As long as you know this, it is probably to get the shares of an index fund to be publicly traded on the secondary market."

"This seems to be nothing, right? If a closed-end fund is listed, its shares can also be traded in a disguised form. Could it be that the index fund you are talking about is not a closed fund? It is an open-end fund, an open-end fund, listed securitization"

(End of this chapter)