Age of Dreams

The complete outbreak of the subprime mortgage crisis was triggered by the collapse of the second largest subprime mortgage company in the United States, "New Century Financial Corporation".

The complete outbreak of the financial crisis was triggered by the collapse of Lehman Brothers, one of the five largest investment banks in the United States, and the acquisition of Merrill Lynch.

After that, the fuse of the European sovereign debt crisis was Greece's debt default.

Of course, the other two have no substantive effect now. The most timely use by Xiao Qi is the second financial crisis, the collapse of Lehman Brothers, and the acquisition of Merrill Lynch by Bank of America.

Xiao Qi doesn't have a good impression of all investment banks and fund companies. Even his old friend Citibank, he should start at the beginning. He collected 1 billion US dollars in Citibank in one go, and he didn't care about favors at all.

Because Xiao Qi understands that these investment banks and banks are giant crocodiles that cannibalize people without spitting out bones. If you talk to them about feelings, they won't talk about feelings with you. The best way to get along is to cooperate vigilantly.

But Xiao Qi didn't dare to eat anything.

Last time Tong Wencong asked Xiao Qi whether he wanted to buy a Greek CDS, which is credit default swap insurance, which can also be called a credit default swap insurance product. Xiao Qi rejected it cleanly and asked him not to participate in it. .

You bet against financial institutions. Winning them is an honor. It is something that will make others feel very cool. Winning money is safer and more transparent than winning in a casino.

However, the use of financial means to entrap a country, no matter how unsuccessful the country is, it is still a very dangerous thing, not to mention that these European countries have gradually become a main body, and they have always advanced and retreated together.

Therefore, Xiao Qi would not be such a greedy fool, he would only make money when he should.

For example, Lehman Brothers, which went bankrupt five months later, and Merrill Lynch, which was acquired by Bank of America, also have CDS bond default swap products in several investment banks. As long as Xiao Qi buys these products in the financial derivatives market, once Lehman Brothers collapses and Merrill Lynch is acquired, these bond default swap products must be redeemed, and if they buy more, they will lose more.

Let us take a simple example to illustrate, that is, Lehman Brothers issues 10 billion US dollars of bonds to the market, and then it finds Merrill Lynch and pays a certain price. Let Merrill Lynch issue an insurance against this $10 billion bond and assume the risks that may exist in the $10 billion bond. This type of insurance is called credit default insurance.

For example, if Goldman Sachs purchases this insurance, if the $10 billion bonds cannot be delivered without default, then Goldman Sachs will need to pay premiums at regular intervals.

If Lehman Brothers collapsed, there would naturally be no way to deliver the $10 billion bond. At this time, Merrill Lynch must compensate Goldman Sachs for its losses. This amount of compensation is not as simple as the little premium paid by Goldman Sachs, at least a tenfold or tens offold increase.

Under normal circumstances, banks and investment banks such as Lehman, Goldman Sachs, Merrill Lynch, etc., all control each other’s bond default swap insurance products, that is, they endorse each other instead of trying to earn money. money.

So far. Just to be clear, the scale of the credit default swap products that commercial banks have reported to the Federal Reserve exceeds 62 trillion U.S. dollars. If you count privately, it is at least 100 trillion U.S. dollars. This shows that the market has How big it is, we can also see how deeply Americans worry about financial derivatives.

Because of such a large scale of credit default swap products, Americans sell these products to the world all the time.

For example, Mochiyev, who has just assumed the post of president of Citibank’s Asian headquarters. He called Xiao Qi and asked him if he had any thoughts on purchasing these insurances.

Xiao Qi refused immediately, saying that he was not interested.

But Mochiyev just took up the post of President of the Asian Headquarters, and desperately wanted to have a little achievement in order to consolidate his position, so he has always been unwilling to call Xiao Qi, emphasizing the purchase of these bond default swap insurance products. the benefits of.

"Qi Shao. We are friends, please trust me. We estimate that by the end of this year, these investment banks will have a big crisis. Although the US government will not let them fall, bond defaults are certain. With these insurances. I can guarantee that you can get at least 5 times to 10 times the return!"

Moqiyev said swearingly, but he didn't know that Xiao Qi was snickering in his heart.

What does it mean to give pillows if you want to sleep?

Isn't it Mochiev?

Originally, Xiao Qi wanted to make a fortune in this area, but he didn't expect that he would automatically send it to the door.

Someone called Xiao Qi bought it, and Xiao Qi took the initiative to buy it. The meaning is completely different.

At least in covering people's eyes and ears, there is a lot of room for calmness.

So, after "reconsidering", Xiao Qi finally agreed to try to buy some bond default swap insurance products.

Of course, Xiao Qi would not be so stupid. He only bought Lehman Brothers’ bond default swaps. This would be too magical. Coupled with Xiao Qi’s achievements in oil futures, it’s hard not to doubt whether Xiao Qi has something. Some special abilities.

Therefore, among Moqiyev's recommendations, the teenager chose to buy the remaining four investment banks, Lehman Brothers, Merrill Lynch, Goldman Sachs and Morgan Stanley.

In the first few days of April, he passed his own funds in Citibank and purchased Lehman Brothers for 4 billion U.S. dollars, Merrill Lynch’s 2.5 billion U.S. dollars, Goldman Sachs and Morgan Stanley for 1.5 billion U.S. dollars each in credit default. Swap products, the time is almost counted to the end of January 2009.

For this reason, from April to January next year, Xiao Qi paid more than 160 million U.S. dollars in monthly premiums, and the total premiums exceeded 1.6 billion U.S. dollars.

However, according to the previous history that Lehman Brothers announced on September 14 to submit an application for bankruptcy protection, and Bank of America acquired Merrill Lynch on September 15 for nearly US$50 billion, Xiao Qi was solely responsible for Lehman Brothers’ credit default swap insurance. Can earn conservative profits of more than 8.5 billion U.S. dollars, and Merrill Lynch also has at least about 4 billion U.S. dollars.

Compared with the profit of more than 12 billion U.S. dollars, the expenditure of 1.6 billion U.S. dollars is just a drop in the bucket.

Although there was a lot of money this time, it did not exceed the bottom line of Americans.

Goldman Sachs, Morgan Stanley, and even Citibank, certainly earn more than Xiao Qi.

In addition, Moqiyev's diligent sales promotion is well-documented, so Xiao Qi doesn't have to worry about the consequences. It is only possible that outsiders think Xiao Qi's vision is good, and once again hit Bao.

Compared to this transaction that took a few months to show its power, Xiao Qi has received a lot of suspicion and ridicule in recent days.

The reason is very simple. Silver Lake Capital has already thought about it enthusiastically. At the cost of a total valuation of 2.5 billion US dollars, it has spent 2 billion US dollars and bought 80% of the shares from Xiao Qi, the chairman of the fairy company. The largest shareholder of the most popular geographic location sharing and geographic review software in North America.

In the previous life, the user growth rate and valuation rate far exceeded that of many companies. This is the same in this life. It already has more than 50 million registered users and 18 million active users. From its inception to the present, it has only been about half a year. The time, we can’t help but say that everyone’s expectations for it are very large.

Originally thought that Xiao Qi would continue to invest and then go public to make money, but he didn't expect Xiao Qi to sell this golden hen before it was fully mature.

Therefore, many European and American critics who could not understand Xiao Qi immediately began to ridicule and ridicule Xiao Qi on TV and in newspapers and magazines.

"Hehe, the genius boy has some fantastic ideas, but his eyes can't keep up with his smart head!"

"If I were Xiao Qi, I would definitely make it worth 10 billion U.S. dollars, and then choose to slowly get rid of it. Perhaps the cautiousness of the Chinese people makes Xiao Qi feel safe and secure!"

"It's a pity, Xiao Qi gave up the possibility of being the second star electronic network company. The acquisition of 2 billion US dollars, Silver Lake Capital has made a profit! I don't know if Xiao Qi will regret it and cry. ?"

"As far as I know, Xiao Qi was not liked by the founding team, so they strongly asked Xiao Qi to sell the stock. How could the Chinese understand American thinking? Xiao Qi's previous success was just a fluke! The beginning of the sale is the beginning of the decline of the Fairy Company!"

"..."

Looking at these remarks ~www.readwn.com~ Xiao Qi's only action is to shrug his shoulders when they are farting.

Not to mention that they didn't know what Xiao Qi was thinking about. To just say that this was hated by the founding team would be to say nonsense with their eyes open.

After Xiao Qi received 1.82 billion U.S. dollars excluding taxes, he directly distributed 120 million in bonuses to the founding team. The least one could get about 2 million. Even Hoffman had a big red envelope of 5 million cheques. Those people I don't know how grateful Xiao Qi is.

Silicon Valley is a place where secrets cannot be hidden.

Once others know how generous and bold Xiao Qi is, then in the future, if Xiao Qi wants to convene them for a career, he must call it right!

This is why Hoffman asked Xiao Qi to pay bonuses to the founding team!

I have to say that if he can come up with such a coup, Hoffman is worthy of the cunning king of Silicon Valley contacts! (To be continued. If you like this work, you are welcome to come to the starting point () to vote recommended votes, monthly tickets, your support is my biggest motivation. Mobile users please go to read.)