Rebirth 79: I opened a bank in the United States

Chapter 454 Market Size
"Service provider? What does this mean?"

Judging from the participating institutions in the MBS issuance process, the Federal National Mortgage Association is undoubtedly the issuer.It is to package and sell a batch of mortgages to the other party, and then the other party will take such an asset for securitization and package it for sale.

It is a bit similar to the secondary distributor in the ordinary commodity sales process, and it is the factory itself.After the factory produces the product, it is sold to the distributor at a fixed price. After the distributor receives the product, it processes it and then enters the market through the distributor.This channel provider is the investment bank of the securities company. They control the securities sales channels in the securities market.
It stands to reason that after these two steps of circulation, my own mortgage securities have entered the secondary market, so why is there a service provider? !
"The service provider is relatively simple. It is an institution responsible for collecting accounts on time and issuing reports to investors. Investment banks and securities companies will not waste energy on such things, and the positioning of service providers is more suitable for you. Basically nine million In terms of US dollars, you can get about 1% of the service commission, which is [-] US dollars."

"Every year?"

"What are you thinking? Total!"

Julian, who was drinking, was not choked to death by Carter's "wishful thinking", and couldn't help but give the latter a look:
"How big is the pool of funds in total? Do you want to get [-] yuan for doing such a small thing? You go grab the money! It's faster that way!"

"Ahem. I don't understand the market. Well, Federal National Mortgage Association, how much is their pass-through commission?"

1258 million plus 9, the total is only 1267 million, which seems to be some distance away from the expected [-]% income.
After a smile, the unwilling Carter continued to pay attention to the issuer.

"They don't calculate it like this. The commission on the surface is about 2%-3%, but in fact they have more sources of income. For example, based on a loan asset pool of 300 million US dollars, issue 3 million copies Pass-through securities, $200 each. But now only [-] million copies have been sold, which means that one-third of the total income in the first year is retained in the mortgage association. What can they do with the money before they go?"

"Can you use it to continue investing? For example, other stocks, bonds, etc.?"

"It should be possible, right? The mortgage income right belongs to them. The sold part is equivalent to being transferred to the investors, but the unsold part belongs to them. They should have the right to control this sum of money."

After thinking for a while, Carter nodded.

"That's right, since this is the case, it's hard to say what their final income will be. They can make money by selling mortgage-through securities. They can also make money by directly investing the money. For some mortgage-through securities with high-quality underlying assets, they even What can you do? Don’t put it all at once, keep a part in your hand, and wait for the value of the securities to rise, and then gradually sell the rest and make a profit from it.”

"And there is a liquidity problem. There should be more room for maneuvering! There is also the sale of income certificates before the repayment date. For example, in the second year, 100 million copies were not sold, so they received a mortgage repayment of about 58 U.S. dollars. After the repayment, they sold the million transfer securities at the beginning of the third year, but since the repayment date has not yet arrived, the money is still in their hands and can be used for investment in other directions!"

Following Julian's words, Carter added.The more you supplement, the brighter your eyes will be. There is too much room for manipulation here!
Seeing Carter's greed, Julian quickly reminded him:
"It's true to say that, but to be an issuer, channel resources are very demanding. You have to bear the risk of not being able to sell and investment failure, and then how to sell these securities better and at a higher price. It also needs the issuer and brokers to work together to find a solution. It is also necessary to hook up with the media to facilitate the blowout.”

"Anyway, the situation is like this. You should consider the specific gains and losses yourself. However, I believe in you! Child, you can make the right choice!"

After blinking pervertedly, Julian changed the topic:
"Okay, let's talk about other things for the rest of the time! You know, today is the only time in this year and a half that I miss the wrap-up meeting before the market closes. You have to give me some , It’s not in vain that I missed the company’s meeting information!”

"Information? My prediction that New Haven is about to enter a period of major construction, does this count?"

Carter frowned, and he heard that Julian seemed to be testing his own worth.Just think about yourself this time.
"And what I mentioned to you before is to attract Japanese car companies to enter Georgia. At present, Toyota Motor and Nissan Motor factories are already under construction, and the surrounding related supporting parts companies, especially companies that can be used in common with aviation parts, There should be a good development. Because these two car companies have invested in the assembly plant this time. Core components such as engines and gearboxes are still produced in Japan, so correspondingly, the rest of the spare parts will not It is produced in a factory in Georgia. And these parts, shipped from Japan and assembled, should not be as cost-effective as purchasing nearby in the United States!"

"Very good. I have already arranged for people to investigate Georgia's rubber products and plastic products companies. Of course, there are some other related industries. You just said that New Haven will be under construction. Can you talk about it in detail?"

"Of course, that's the way it is."

From my own experience when I entered school, until I saw the announcement of the New Haven City Government at the end, I further speculated that the construction of New Haven will start.
Julian has always been a good observer, regardless of whether the content of Carter's words is nutritious or not, he always shows a look of great interest.

"So you want to open a commercial bank in Connecticut, and then take advantage of the demand brought about by the large-scale construction of New Haven, and then use MBS as a financial tool to increase the speed of capital turnover, and enjoy a wave of dividends?"

"That's right! According to the cooperative plan between Yale and the New Haven City Government, there should be no less than [-] permanent residents in the downtown area, that is, near Yale University, plus about [-] Yale students. A staff group of [-] people. The entire New Haven urban area should have an active population of no less than [-], or [-]."

"But now it is obvious that the gap is far away! Yale has expanded its enrollment over the years, which can be regarded as a temporary solution, but Ben has not been cured. To be honest, too many students now have caused a serious decline in our teaching quality. Many professors' courses, selected None, and there are many professors and their relatives who would not choose to live in New Haven at all."

"According to the observations and statistics of my classmates and me, including Yale teachers and students, the active population of the entire urban area of ​​New Haven should be only about [-], which may be one or two thousand people less, or one or two thousand more. But this Inside, there are a large number of Yale students. After the expansion of enrollment dissipates, this indicator will drop sharply to about [-]. It is still [-] short of the plan of the New Haven government! It is still three short of the more active scale now. Ten thousand!"

"This population increase of 10, even if there are five people in one household, means a demand for [-] properties! According to the current housing prices in the urban area of ​​New Haven to speculate on its possible increase range, I think that if the development goes well, it will take two years. In three years, the urban area should be able to rise to about [-] US dollars for a house. Then the residential market alone is a market of [-] million US dollars. If you add commercial buildings and government financial orders to modernize the old city "

"Construction, real estate, and its associated real estate finance. If I can rely on DOG real estate and the high turnover provided by that commercial bank, if I am in good condition, it should not be difficult to get one-fifth of the orders. This is a Hundreds of millions of dollars!"

(End of this chapter)