My 1999

Xu Liang smiled and looked at Mai Jinheng who was speaking, "I need financing."

As if he had guessed Xu Liang's thoughts, Mai Jinheng asked calmly, "How much do you need?"

Xu Liang didn't say anything, but raised five fingers.

"Five times leverage, no problem..."

Ma Jinheng suddenly reacted.

No!

Their investment bank has already given Hanhua Group this leverage ratio.

"It can't be fifty times, right? Xu, do you want to trade foreign exchange?!"

Blancfan stared at Xu Liang with suspicion, thinking quickly in his heart.

Suddenly, he seemed to think of something.

He opened his eyes wide and asked in an uncertain tone, "100 billion US dollars?"

"Yes, 100 billion US dollars in stock positions!"

Xu Liang looked at the two with a smile.

"How about it? Do you want to take this job? The stock transaction fees and financing interest returns will be a very considerable number."

Although Hanhua Group is already very large, its investment in the United States still cannot be separated from the five major investment banks, as well as Citi and JPMorgan Chase, which are giants in the investment banking field.

You must use their platform to smoothly conduct huge transactions.

Mai Jinheng shook his head repeatedly, his expression solemn: "Too high, two funds add up to 10 billion US dollars to leverage ten times, the risk is too great."

"Xu, taking into account the warning line, it does not need to really reach 10% stock price fluctuations, just a few points of fluctuations, your 10 billion US dollars will evaporate directly from the market."

Blancfan also advised in a serious tone.

"I know you want to short the stock market. Even if the subprime mortgage storm continues to expand as predicted by Hanhua Group, a 10% stock price fluctuation is also very easy to occur.

If someone is doing the opposite of you, the risk of liquidation is even greater."

Xu Liang smiled, "You two misunderstood, even if you really give me 10 times leverage, I dare not use it. After all, the Quantum Fund incident has been less than two years ago. My family is big and I don't want to take such a big risk."

"What do you mean...?"

"In addition to the two new funds with a total of 10 billion US dollars, there are also the income of the two funds, and part of Hanhua's own funds, the margin will reach 20 billion US dollars." Xu Liang continued.

Mai Jinheng looked much more relaxed, "So it's still five times leverage?"

He thought about it and shook his head again.

"The risk is still too great. With a short position of hundreds of billions of dollars, once there is a big market fluctuation, the liquidation will be very noisy and it is very likely to be liquidated."

"Not very likely, but definitely!" Blankfein said firmly.

"Isn't this the same leverage multiple as before?"

Mai Jinheng glanced at Xu Liang, "Let's not beat around the bush. Although there were problems in the subprime debt market before, it was at least still very prosperous on the surface. In this case, even if the position is liquidated, it will not cause fluctuations in the market.

You now have hundreds of billions of dollars, plus the funds that Hanhua has already shorted, the quantitative change has caused a qualitative change."

Blankfein nodded and agreed, "Yes, Xu, it's not that we don't want to help, we can't afford such a big thing."

Xu Liang sighed, "Then what about using the financial investment tool of "total return swap"?"

Total return swap, Total Return Swap

TRS contract for short means that the buyer of the credit guarantee transfers the total income of the reference asset to the seller of the credit guarantee during the agreement period.

The total income can include principal, interest, prepaid fees, and capital gains due to favorable changes in asset prices, etc.

Blankfein narrowed his eyes slightly, "You mean to let Goldman Sachs and JP Morgan help you short sell?"

"Yes, you control the account, as long as the investment is completed, the income delivery will be done, so the leverage multiple can be looser, right?"

Xu Liang actually probably knows that if the amount of funds is too large, the leverage will be severely restricted by the investment bank, because this is a game of risk between the two parties. If the leverage is too high, the investment bank can easily be dragged down by the client and cause losses.

The total return swap is relatively easier to accept.

This is also a credit derivative, and it is a sibling of CDS credit default swap/swap.

The two parties to the CDS transaction agree on whether there is a default event, while the total return swap agreement is similar to "stock speculation on behalf of others".

The investment bank is entrusted to help go long or short, and the income belongs to the client, and the investment bank earns some transaction fees and financing interests.

At the same time, this operation has another benefit, which is to avoid the disclosure of hedge fund information and not reflect the investment on the balance sheet, so as to achieve the effect of concealing itself.

But investment banks need to face the dual risks of credit risk and market risk.

In his 2002 letter to shareholders, Buffett warned of the risk of "total return swap": total return swap makes the margin requirement look like a joke.

When Charlie and I read the derivative activities described in the footnotes of the financial reports of major banks, the only thing we can understand is that we don't understand how much risk is hidden in these activities...

In fact, the description of the old man is a bit exaggerated. The margin still needs to be paid, otherwise the investment bank is also worried about being free.

Considering the past outstanding performance and asset management scale of Hanhua Group, Blankfein has been moved. He said: "Xu, how much margin are you willing to pay?"

"20%."

Xu Liang is also a little afraid that the leverage ratio is too high and it will lead to failure, so he conservatively requires a five-fold leverage, and at the same time, he will reserve a certain amount of funds.

When a stock rebounds, you can add margin at any time to ensure that there is no risk.

Blankfein did not speak, but looked at Mack, who also looked thoughtful.

To make a little money, it is not easy to play with clients with tens of billions of dollars.

But then again, since there are such mature products in the market, it means that the risks and solutions have been fully considered.

Wall Street investment banks are all veterans. They have always been the only ones who cheat hedge funds, and it is rare for hedge funds to cheat them.

If it really happens, it is also a low-probability event. At most, you can use the profit to offset it.

This is the same as selling insurance, allowing a certain percentage of the accident rate.

"Okay, we JP Morgan will take this job."

Considering the ugly financial report this year, Mack thinks that the business of Hanhua Group is still worth a try.

Xu Liang looked at Blankfein, who nodded: "No problem, we will take it too."

Finally convinced the two white gloves, Xu Liang showed a smile on his face.

"We also have a small request, to hire Goldman Sachs and JP Morgan to design high-leverage bearish derivatives to sell to major investment institutions, and to match transactions with our counterparties."

Blankfein was stunned for a moment, then laughed: "No problem, this is a value-added service."

This kind of dirty work is not the first or second time, and Blankfein is familiar with it.

Last year, Goldman Sachs helped Hanhua Group design a synthetic CDO, which sold very well. A large number of investment institutions purchased this product and became counterparties with Hanhua Group.

With the occurrence of the subprime mortgage crisis, these investors have lost their pants, while Hanhua Group has made a lot of money.

If you want to do something fancy, you can't do without the help of Wall Street investment banks.

As long as you give money, any opponent investment bank can fool you.

Of course, the transaction is absolutely fair, and winning or losing depends on the difference in the perception of subprime mortgages between institutions.

Mai Jinheng took a deep look at Xu Liang. At such a young age, his heart is as black as theirs. Only such people can play Wall Street!

"Okay, this is very simple."

McKin Heng was all smiles, saying that by matching the opposing party, they, as an investment bank, can earn a commission, so why not?

Intermediaries are like this, they take money from both sides, and sometimes they take the money from one side to help cheat the other side.

Xu Liang, Blankfein, and MacKin Heng secretly discussed in the room for more than two hours. When they walked out of the door, most of the people outside had already left.

Xu Liang called Helen and was about to leave when Paulson stopped him.

Seeing Paulson chasing after him in a hurry, Helen guessed that there might be something important to discuss, so she said obediently and sensibly: "I'll wait for you in the car."

Xu Liang nodded gently and watched Helen leave with lotus steps.

"John, before I could congratulate you, Paulson Fund has joined the 10 billion club!"

Looking at the hand that Xu Liang held out, Paulson reached out and shook it, smiling with envy:

"Xu, thank you. Congratulations to Hanhua for joining the 100 billion club. It has spread all over Wall Street. Pacific Fund's excellent performance once again dominates the global hedge fund field, with four firsts in five years.

Such brilliant achievements, I'm afraid no one in the world can compare with you."

Xu Liang looked at Paulson with a smile. At this time, almost all the people who attended the club party had left, but the other party did not leave. It seemed that he was waiting for him specially.

He could vaguely guess some of the other party's thoughts, but deliberately pretended not to know and asked: "John, how was the communication with the big guys today?"

"Not very good!"

Paulson shook his head, not hiding his somewhat depressed mood.

"These old Wall Street people seem to look down on us newcomers. They probably think we are lucky and qualified to sit with them."

Xu Liang nodded slightly, "You noticed it too? They looked at us as if they were a nouveau riche."

Paulson laughed. Xu Liang's words resonated with him strongly, and then he began to complain.

"If they think it is easy to short subprime mortgages, why don't they short them themselves?"

"We started out as speculators, so how many of them are clean? Are they all value investors?"

"If you ask me, they are just jealous. They think we have achieved what they have spent their entire lives to achieve in just one year. They are psychologically unbalanced!"

"Does the investment industry need to be ranked according to seniority? Performance is the root of everything."...

After venting his emotions for a while, Paulson calmed down a little. He did not forget his mission and asked, "What do you think of Mr. Dalio?"

Xu Liang replied calmly, "Very impressive An investment guru."

"I'm not asking about investment performance, I'm asking what you think of him?"

Xu Liang smiled, "Not bad, at least he said a lot of good things about me in front of everyone tonight. The media described him as very evil and greedy, but it seems that's not entirely true."

Paulson sneered, "Media? The media is a bunch of unethical bitches, even call girls in Manhattan are cleaner than them.

The media mouthpieces are all controlled by the consortium, and they only speak from the standpoint of the financial backers behind them. The so-called fair and objective news is just to fool the grassroots people."

Xu Liang felt that what Paulson said made sense, but what does this have to do with Dalio? Was he wronged?

If you act as a white glove for the relevant stakeholders, you must be aware of taking the blame.

There is no mistake in every song, one post, one content, one 6 one, one book, one book, take a look!

"Mr. Dalio is actually not as dirty and unbearable as the public imagines. From the perspective of Bridgewater LP, he is the best fund manager and a great investment guru."

Xu Liang smiled faintly and did not comment.

Paulson continued unconsciously: "If short sellers succeed, it means that this company has a problem and this country's economy has a problem."

"There is an old saying in our country that "the fly does not bite the egg without biting it."

Paulson's eyes lit up, "This is a good saying. It is definitely a famous saying. It is perfect to describe short-selling transactions. The short-selling mechanism can help eliminate those non-compliant companies and squeeze out economic bubbles."

Xu Liang said nothing and only smiled.

This expression fell into Paulson's eyes and became a support.

In fact, Paulson doesn't think Xu Liang has any moral obsession, because Hanhua is also one of the big short sellers of subprime mortgages.

He has proven his position with practical actions. People who focus on making money never shy away from investment methods.

"I have only known Mr. Soros for a short time, but he has taught me many things, the most important of which is: I was born poor, but I must not die poor!"

Paulson said loudly, with a fire burning in his eyes, full of desire for wealth.

Xu Liang nodded lightly: "That's good. There is a saying in China: "Princes, generals, and ministers would rather have their own kind."

Paulson smiled and said, "Xu, I'm actually bringing you a message for Mr. Dalio."

"What words?"

Paulson looked at Xu Liang with burning eyes and uttered a few words: "Hunt the world together!"

…

On the car ride home.

"What did that man say to you just now? I saw that he looked very excited." Helen asked curiously.

“He is the head of the Paulson Institute and wants me to invest in his fund.

You know, if a fund manager is not good at describing some good things to his clients, how can he attract investment.

Rich body language can often increase the persuasive effect. "Xu Liang said with a smile.

Helen didn't know much about finance, and he didn't intend to say too much.

"Then you agreed?"

"Yes. He is a very talented fund manager. We have made a lot of money from our previous investment. I have no reason not to continue investing in him."

"I don't believe his ability is above yours."

Looking at the woman's adoring eyes, Xu Liang smiled.

"After all, I am Chinese, not American!"

Helen understood what he meant instantly.

Once the subprime mortgage crisis breaks out, it will have a huge impact on the United States.

If a Chinese person is too provocative, competitors and enemies with ulterior motives will definitely divert trouble to him and bring conflicts to him.

But if it's the Americans themselves, it's different.

The meat is rotten in the pot, and everything inside and outside has been explained.

"By the way, how did you go about the things I told you?"

Xu Liang asked.

"'Sisters of Guns N' Roses' now has 13 people. In addition to Michelle Obama and Ivanka Frederick you mentioned, I also invited MacKenzie Bezos, Melinda Gay tz, Karen Lynch and the others join.”

The Madam's Route has been proven by countless examples from ancient times to the present. It is a road that can solve countless conflicts.

Therefore, after Xu Liang made some achievements in the development of Facebook, he told Helen to prepare a group that could unite the powerful women in the United States.

When the time comes, I will also be able to provide myself with a powerful helper from both the political and business circles.

"In just a few years, you have developed the 'Sisters of Guns N' Roses' to such a big extent?"

Helen enjoyed the man's surprised expression.

"This is nothing. Women in the Montes family have been taught since childhood to be good at using the power of the group to benefit themselves. When I was at Columbia University, I was the leader of the largest sorority in the school.

Organizing the ‘Sisters of Guns N’ Roses’ is also a familiar process.

And those people I invite also need a group of women to support them.

Everyone gets what they need. "

"Well done."

After Xu Liang praised again, "It is not enough to have an organization. Only by entangled interests can we be truly stable."

"Of course, I have decided to launch a targeted fundraising through Facebook to all members of the 'Sisters of Guns N' Roses' so that they can become shareholders of the group.

At the same time, Helen Charitable Foundation and Global Charitable Trust will also invest in their companies.

In addition, we have also agreed that once a party or company encounters difficulties, all members will actively participate in solving them and finally provide certain financial support..."

Each item is more detailed than Xu Liang imagined.

But this is normal.

Sororities and fraternities have existed in the United States for hundreds of years, and various systems have been well established.

"It's very good. With this 'Sisters of Guns N' Roses', the Xu family can be more stable in the United States."

Helen nodded and looked at him, "You solemnly recommend Michelle to me, I can understand, after all, her husband is not only a federal senator, but also actively selecting the president, with a good prospect.

But I don’t understand why you let this Ivanka join the club.

His father is just a wealthy man with some money, and he only has some influence in New York.

As for herself, she is just a model..."

The woman raised her lips.

"You don't have a crush on her, do you?

That's right, that woman has big breasts and long legs, and her face shape is the type you like.

Do you want me to ask her out?

Based on my understanding of her, if she knew it was you, she would definitely take off all her clothes and climb into your bed at the first opportunity. "

Xu Liang raised her chin with his right index finger and smiled.

"There are many beautiful women, but you are the only one I trust. As for Ivanka, don't underestimate her. Just because she is not noticeable now doesn't mean she will not be noticeable in the future. ”

It’s not easy to be the son-in-law of the King of Understanding.

With his nagging and careless personality, you will not only not get any benefits, but also get yourself into trouble.

He is not interested.

Although Helen can’t see any outstanding ability of Ivanka, her man’s vision has never been wrong.

If nothing else, you can see something from his relationship with Obama’s family.

From 2002 to now, in the five years, the total amount of money donated to Michelle’s charity fund for various reasons has exceeded 50 million.

There is never a shortage of gifts during the holidays every year.

Every time he comes to the United States, he always calls Obama to get together.

The latter has also transformed from an ordinary Illinois state senator to a senator, and is now actively running for president.

Although there has never been a precedent for a black person to become president in the United States, what if?

"Since you are not interested, forget it. The woman was originally very interested in you. "

Xu Liang smiled. He admitted that Ivanka had a good face and figure, but there were more tender and delicious 18-year-old girls to eat. Why would he touch a 26-year-old woman who had been through many hands?

Besides, the flowering period of white women is short.