The Son of Finance of the Great Age

  Chapter 553 The Dragon Trapped in the Wild (5)

  Gao Dongfang was under a lot of pressure.

Being able to sit on the position of the general manager of the sovereign wealth fund undoubtedly has his advantages: solid professional background and rich financial experience make him stand out among many competitors and become the general manager of the newly established Huatou .

  As a newly established sovereign fund, the management team of Huatou urgently needs to prove its strength in the market, and Gao Dongfang is no exception. Although there is a saying in investment that "scale is the natural enemy of rate of return", and Huatou is a fund with a capital of up to 100 billion U.S. dollars, but because it manages tens of billions or even more than hundreds of billions of dollars globally Sovereign funds abound, and most of them have outperformed the market, and some of them can even achieve super high returns close to 50% in a single year, such as Temasek Fund and Norwegian Petroleum Fund. Dongfang and others brought great pressure.

  Facing the impressive performance of its peers and amidst the ardent expectations of the government and the public, Huatou started their first transaction and strongly intervened in the IPO of the famous private equity fund Beryl Rock, hoping to get off to a good start. It's a pity that Bailey Rock Fund only brought a slight premium to Huatou after its listing, and Huatou, which lost its voting rights, could only watch the market deteriorate. Was deeply trapped!

   Not only lost the right to vote, but also was deeply locked up. I have to say that this result is quite frustrating. Accompanying this failed investment came overwhelming accusations against Huatou's management, which put a heavy psychological burden on all Huatou's management, including Gao Dongfang. Although it was only the first transaction and it was still testing the waters to a certain extent, Huatou still paid tuition for it.

In all fairness, after the IPO of Bailey Rock Fund, the stock price fell below the issue price, which was unexpected by the market, because Bailey Rock Fund has always been a leader in the PE industry, and has been famous for its stable profits and pioneering vision for many years. However, the overall environment of the U.S. capital market deteriorated rapidly due to the deterioration of the subprime housing mortgage loan market. In this case, pure financial stocks are naturally the first victims of the loss of investor confidence.

However, before Huatou's senior executives had time to be depressed, a new transaction plan was put on their desks. This time, it was the world-renowned financial institution Stanley Corporation, whose profitability and reputation in the industry far surpassed Bei's. A super financial institution of Ray Rock Fund.

The senior management of Huatou was very cautious, and did not agree to the deal quickly just because the other party offered an olive branch. After carefully studying the current US economic situation and the internal situation of Stanley Company, they determined that there was an unexpected situation in the other party's financial situation. This is the only way to make contact with the other party cautiously.

   Prior to this, Huatou had already held some of Stanley's tradable shares in the secondary market through its subsidiaries. This time the other party approached them, and they absolutely refused to let go of this good opportunity to buy shares. After several months of intense negotiations, the two parties finally reached a capital injection agreement for debt-to-equity swaps.

  The people of Huatou have become smarter this time. While helping Stanley, they naturally seek to maximize value. They aimed at Stanley's sales channels and broad contacts. In Stanley's more than 70 years of history, Stanley has served countless governments, dignitaries, rich people, upstarts, etc. around the world, and has accumulated a strong network of contacts. And it is also a big player in the capital market, so using it to find high-quality investment resources in the market is even more effective.

  The people of Huatou made this wishful thinking, and Stanley agreed after hesitating for a moment because he wanted more from others and was eager for a generous commission return. It has to be said that Stanley's sales network is very strong. In just one week, they found dozens of projects that met their requirements for Huatou. After the preliminary selection, they couldn't wait to notify Huatou. People who vote. At this time from the end of 2007 has not been a few days.

   On Christmas Eve, the Stanley headquarters in New York was still brightly lit. In the hall on the ground floor is a huge Christmas tree, which was just cut from the forest in Wisconsin and airlifted here. The dazzling lights are dotted on the green pine, which is particularly special in the slightly dim hall. striking. There are still many exquisite gift boxes under the tree for people to choose from, but this effort is doomed to be in vain. The Stanley employees walking in the hall can only look at the Christmas tree at most. Unwilling to stop.

  As for the assistants or analysts at the bottom level, they are too busy to have holidays, weekends, and some even only have two or three hours of rest a day, so they don’t have the energy to pay attention to these things. For employees with higher levels, they don't pay attention to these things at all. So even though the HRs took great pains to create a Christmas atmosphere, the people who were busy in the building at this time had no intention of celebrating Christmas at all.

  Christmas lights are brightly lit, which is the norm on Wall Street, and Stanley is no exception. In a medium-sized conference room on the 18th floor, there were many people, and the discussion was in full swing. Compared with the snow and the cold wind outside the window, the environment here is undoubtedly much better.

   "These are the list of assets we have selected for investment!"

Richard Graham delivered a document in hand to Gao Dongfang who was sitting across from him, "According to our research and judgment, although there may be risks in the future, these companies have good prospects in both stocks and bonds. Moreover, according to the latest financial statements disclosed, although their cash flow on the books is not much, but the amount of realizable assets is huge, and sufficient liquidity can be drawn from the market at any time.”

After a pause, Greenham continued: "Although the main business of these companies is real estate, they are more or less affected by subprime mortgage loans. But you can rest assured that at least for now, their business conditions Good, there will be absolutely no risk. The reason for issuing new bonds must be to raise cash to resist risks. The most important thing is that they are federal government-sponsored enterprises, and they have the same credit rating as the Ministry of Finance. Default The risk is basically equivalent to zero."

"Sponsored by the federal government?" Gao Dongfang took the materials, rolled his eyes casually, and saw that there were two corporate bond issuance plans called Freddie Mac (Freddie Mac) and Fannie Mae (Fannie Mae), and he was secretly moved. When I heard Graham explain the "government sponsorship", I couldn't help being curious, and blurted out immediately, "What kind of enterprise is this? Is it a state-owned enterprise?"

  Because of the different economic systems, there are companies of different nature in China and the United States. An enterprise represented by the government as a legal person is called a state-owned enterprise in China. The economic system of the United States is a market economy. Although there are similar enterprises with the government as the main body, these enterprises usually exist to solve areas where prices cannot be solved, or to transfer payments. In short, they do not exist. A business for profit.

  So when he heard that these companies are listed companies and are so-called "government sponsors", Gao Dongfang was a little confused about the situation.

"It's like this, Mr. Gao." Richard Graham smiled slightly, and he had long been prepared for the other party's surprised reaction, and he explained calmly, "Although Freddie Mac and Fannie Mae are listed Corporations, but they are enterprises created in accordance with federal law. Their main function is to buy mortgage loans from banks, mortgage companies and other lending institutions, and then resell them to other investors. Liquidity of bank assets is their The original intention of the establishment, later the government felt that one company was too monopolistic, and created another company to allow the two sides to compete. You can see these two giants now, but today they have been privatized, but they still enjoy a certain line of credit from the Ministry of Finance .”

After listening to Richard Graham's explanation, Gao Dongfang nodded thoughtfully, and muttered in a low voice, "So it's the Federal Reserve of the real estate industry, I understand." A piece of paper came, pointed to the content on it and asked Richard Graham: "Mr. Graham, what is this called The Primary Fund (The Primary Fund), please introduce it to me."

"No problem, sir!" Richard Graham said without hesitation for a moment, "This master fund belongs to the reserve fund management company and is their flagship fund in the money market, with a total capital scale of 30 billion. There are a lot of dollars. The main investment is high-quality bonds and bills in the market, including government bonds, corporate bonds, private bonds and overseas bonds. These guys are risk-averse and don’t pay much attention to reporting performance, but stable returns And timely and quick realization. If you want to manage cash and get a certain amount of income, I suggest that you don’t bother looking for these guys, they are the top players in this market.”

  Seeing that Gao Dongfang didn't show any performance, Richard Greenham weighed it over and over in his heart, and then said: "But

  Mr. Gao, after all, the market returns are too small. If you want, I can introduce Bill Gross of Pacific Investment Management Company to you. I believe you should have heard of it. This guy currently manages more than 500 billion US dollars of funds and is a top figure in this market. "

When talking about Bill Gross, Richard Graham's complexion became solemn, and his voice was low and serious. Even if he was not in front of Gross, his respect for the other party was spontaneous. From the heart.

Investment in the bond market and investment in the stock market are two completely different strategies. Even for the most junk-rated bonds, the maximum return is limited, because you have to bear the risk of default, and when the price drops to a certain level, it will collapse completely. . For stocks, although such risks also exist, they are generally relatively rare, and stocks can minimize this risk and maximize returns through multi-strategy coordination.

  According to the expectation of returns and the degree of risk aversion, funds can freely choose the bond market or the stock market. Of course, the face value of general bonds is very large, and a considerable number of investors with large funds are conservative people, so it is not surprising that the scale of the bond market is larger than that of the stock market.

"How could I not have heard of the majestic bond king?" This time Gao Dongfang didn't show any surprise on his face, but he lightly expressed Richard Graham's kindness. Refused, "However, it is better for us to manage these funds ourselves. If we are only pursuing stable returns, we can just buy US treasury bonds directly. There is no need to establish a sovereign fund."

"..." Graham's expression was slightly awkward at this moment, but he was quick-witted, and quickly changed the subject, "By the way, Mr. Gao. There is still turbulence in the housing mortgage loan market. Our forecast It will last at least three months to half a year, depending on the Fed’s support for the market. However, the Fed will certainly not allow the US economic growth to slow down or even enter a recession. My personal judgment is that the Fed will continue to cut interest rates And inject funds into financial institutions to eliminate market instability. Therefore, if you want long-term and stable returns, and the investment target is not bonds, I think there should be a lot of them in the market during this period Assets can be acquired by you.”

Looking at the snow scene outside the window, he turned his head and said to Gao Dongfang meaningfully: "Sir, these are all from my heart. I don't recommend you buy Fannie Mae or Freddie Mac stocks, because in the future For a period of time, their prices will inevitably fluctuate disorderly, which may incur additional costs for you. If you really want to buy, I suggest buying their bonds, and of course convertible bonds are also good.”

"Thank you, Mr. Greenham, we will fully consider your suggestion!" After asking about the situation of several representative companies on the recommended list, Gao Dongfang put away the catalogue, and he and the people who were viewing the materials After discussing in a low voice, the man expressed his gratitude to Richard Graham with a blank expression, "I want to take these things back and study them carefully, don't you mind?"

"Of course I don't mind!" Richard Graham's eyes immediately flashed joy, but it was so fleeting that everyone, including Gao Dongfang, didn't notice, "These materials were originally prepared for you of."

   This April Fool's Day subscription growth is so pitiful... It seems that there is no response... Don't feel emotional and continue to write... Try to write more...

  (end of this chapter)