Hong Kong Giant Owl: Rebirth

Chapter 887 Terrible Means
Putting his hands on the railing of the terrace, looking at the not-so-wide but very bustling street in the distance ahead, Qin Haoran said: "In order to attract more people, we can even launch a loan without principal. , five-year or seven-year adjustable rate loans, or optional adjustable rate loans and other loan methods.”

Qin Haoran's words surprised Feng Chengcheng, because with this knowledge, Feng Chengcheng had concluded that Qin Haoran's understanding of finance was definitely not shallow.

"We can adjust these loans. In the first few years of customer repayment, the monthly mortgage payment is relatively low, and the payment amount is relatively fixed." Qin Haoran said: "However, after a certain period of time, the mortgage payment that needs to be paid will be will improve."

Feng Chengcheng frowned: "Your method is a bit wrong. In this case, everyone knows that after applying for these mortgages, the pressure of repayment will be very small in the first few years, but the days after that will be very difficult. In this case , who will come to ask for such a loan?"

Qin Haoran shook his head with a smile: "Of course someone will come to take out a loan. As I said before, this is a kind of real estate mortgage. People who apply for this kind of loan are usually to buy a house. As for the purpose of buying a house for It is not up to me to decide whether to live by myself or invest in appreciation.”

"And people choose this kind of loan, there are no more than two motives." Qin Haoran stretched out two fingers, and said to Feng Chengcheng: "They are very optimistic about the prospects of real estate, and think that housing prices will continue to rise. Even if they really Some of them can’t bear the pressure of repaying the loan, so they just need to sell the house and pay off the loan. On the other hand, they feel that the rate of appreciation of the property will outpace the increase of the loan interest burden.”

Feng Chengcheng folded his hands and smiled: "From what you said, this subprime loan model is based on the optimistic prospects of American real estate. Whether you are the lender or the person who applied for the loan, you all agree with it subjectively. U.S. real estate will keep rising."

"That's right." Qin Haoran chuckled.

In fact, Qin Haoran knows that from now until the 80s, the American economy has been developing all the way, especially the 70s and [-]s, which can be called the golden age of the American economy.Although during this period, dollar crises occurred from time to time, but the impact on the overall environment of the United States will not be too great.

It was not until the end of the 80s that the crises brewed and buried in the golden age of economic development in the United States would all burst out, forming the world-famous stock market crash.And according to Qin Haoran's plan, in the early to mid-80s, he would sell his financial assets, including the stocks of financial companies in his hands, securities in his hands, and futures orders. All assets are sold.

After getting rid of the high price of that burden, Qin Haoran was able to avoid this crisis, and then, in the U.S. stock market crash, Qin Haoran absorbed potential stocks or company assets back at low prices.

Feng Chengcheng didn't understand why Qin Haoran had such confidence in American real estate, but Qin Haoran continued: "With the concept of this sub-loan, we can also earn more profits from the financial market."

"For example?" Feng Chengcheng waited to listen to Qin Haoran's high opinion.

"First of all, there are many people whose income is not very stable, and it will be very difficult for this part of the people to buy a house." Qin Haoran said: "At this time, we can give them housing loans, because in the first few years, Their loan repayment pressure will be very easy, even if the repayment pressure in the future is heavy, as long as the house price continues to rise, they will not be afraid of repaying the loan. So, I guess not many people will refuse our loan offer.”

Feng Chengcheng said: "In theory, there is nothing wrong with you doing this. As long as the real estate continues to rise, there will be no problem with this loan. But, how can you guarantee that the house price can continue to rise? Haoran, you have to know If the real estate price falls, it will not only suffer for the borrowers, but even you lenders will have problems.”

Qin Haoran smiled and said: "Yes, this is indeed a high-risk investment behavior. However, we can go to an investment bank to pass on the risk."

"investment bank?"

"Yes, investment banks are the mainstay of American finance, including your Rockefeller family, don't you also own investment banks, and rely on investment banks to make a fortune." Qin Haoran said.

Feng Chengcheng shook his head: "No, this kind of high-risk thing, once there is something wrong with American real estate, the non-performing loan ratio of investment banks will immediately soar, and they will not cooperate with you."

Qin Haoran looked at Feng Chengcheng, smiled and shook his head: "Cheng Cheng, you don't know enough about investment banks, no, it should be said that those capitalists are still not familiar enough. They are never afraid of risks, as long as they are provided with enough profits. You say , if I tell them the return on investment of this subprime loan, will they not be interested?"

Feng Chengcheng was startled when he heard the words. Indeed, having grown up in Rockefeller, she has a very deep understanding of capital.As Qin Haoran said, as long as there is a high enough profit return, capitalists will directly ignore the immediate risks.As for the subprime loans that Qin Haoran mentioned, Feng Chengcheng already felt that the profit return was very high before he made a market analysis, let alone those capitalists who are more sensitive than foxes?

"Then, we can operate." Qin Haoran smiled and said: "Strictly speaking, this loan is also an asset. And we can securitize this asset."

Hearing Qin Haoran's words, Feng Chengcheng became confused again, because the concept of asset securitization has not yet appeared.In the original history, it was not until 1970 that the Government National Mortgage Association of the United States issued mortgage-backed securities with mortgage loan portfolios and underlying assets for the first time, that is, mortgage-backed securities, realizing the first asset securitization. trade.

Qin Haoran explained to Feng Chengcheng: "To put it bluntly, it is to use mortgage loans as assets, and then package these assets into securities that can be circulated in the financial market and go public."

"How can this mortgage be turned into securities?" Feng Chengcheng said.

"It's in vain that you were born in Rockefeller." Qin Haoran said with a chuckle: "In mortgage loans, although there will be no cash flow nowadays, due to its high interest rate, its return rate is also high, so it can be regarded as a kind of appreciation potential. Strong securities. To put it bluntly, ordinary stockholders pay to buy these securities, and the high mortgage interest in the future will be their return. In case the real estate in the United States really falls, our profits have already been withdrawn. Investment banks It also transfers this risk through securitization to those who bought the securities."

Feng Chengcheng was dumbfounded when he heard that, as Qin Haoran said, the loan company and the investment bank had already made money, and then the risk was borne by the small retail investors in the financial market, or the companies that bought these securities.

Then Feng Chengcheng saw Qin Haoran's inscrutable smile. She understood Qin Haoran's meaning. Those retail investors in the financial market buy stocks based on their own opinions or follow the public. Or the performance of an asset while buying its securities?

As long as which stock has risen, and which stock's market price has risen, they will rush to buy it.

Then Qin Haoran continued: "We can play the roles of loan companies and investment banks, or find other investment banks to transfer the risk of this sub-loan more securely. I believe that with this asset security In this way, no investment bank will reject me."

"You guy...you guy..." At this moment, Feng Chengcheng didn't know how to react other than marveling at Qin Haoran's incredible idea.

According to Qin Haoran's idea, no investment bank would refuse to cooperate with him, or as Qin Haoran said, he would simply act as an investment bank himself and earn the benefits of the securities issued.

In this way, Qin Haoran can really turn upside down in the American financial market.Moreover, Qin Haoran now has [-] million US dollars in his hands, which is enough to complete this series of operations.

I heard Qin Haoran say again: "This is not the only thing. If the market of the securities issued is good, we can also use hedge funds to share the benefits brought about by these securitized mortgages in the financial market."

"That's not all. Once these securities become popular in the financial market, we can use hedge funds to use these securities as collateral to go to the bank for loans, in exchange for several times or even ten times the loan, and then use these funds to operate. "Qin Haoran snorted and said: "Driven by profit, the enthusiasm of banks to make this kind of loan will become higher and higher, and then before you know it, billions or even tens of billions of dollars will pass through this loan. Securities are being leveraged out of banks. As long as U.S. real estate keeps going up, everyone will be happy."

Feng Chengcheng said: "Then what if the situation turns bad? The hedge fund in your hand will immediately bear a huge loan, and then you will have to file for bankruptcy."

Qin Haoran laughed: "No, I will sell everything before the situation turns bad. After earning the profit I expected, I will sell all the stocks of these hedge funds and my own bank. I guess , Before the situation turns bad, there will be countless capitalists vying to take over."

"Haoran, I'm very scared." Feng Chengcheng suddenly trembled: "The operations you mentioned are too... too scary!"

(End of this chapter)