Reborn Financial Overlord

Which of these bankers is not as cunning as a fox, if these guys think he is smart, then he can go out now.

No one will do a business that they know will lose money.

The senior management of HSBC is all financial elites with professional backgrounds. After reading it back and forth several times, they quickly figured out what the contract presented by Capital One was.

This is a gambling agreement.

It is very close to the credit default swap in the U.S. real estate bond market, but it is different from the credit default swap in the U.S. real estate market with the bond asset price as the underlying object.

Taking well-known real estate in many cities in Thailand as the target, the weighted average valuation is adopted, and the calculation unit is the international common currency US dollar.

Of course, the settlement is also in US dollars.

When the weighted average index of housing prices continues to rise, Capital One must pay HSBC a monthly premium (deposit.)

When the housing composite index continues to fall, the bank pays Capital One insurance premiums.

It is somewhat similar to an insurance contract for property preservation.

For example, help a friend to buy a life insurance or vehicle insurance, but the beneficiary is the policyholder.

But not quite.

For conventional life or property insurance contracts, the maximum amount of compensation is calculated based on the payment amount of the policyholder and the insurance period.If an accident occurs to the insured person or assets in the middle of the contract, the insurance company will pay compensation according to the terms of the contract.

But if there is no accident in the middle of the insurance bid, then the annual premium of the policyholder will be paid in vain.

It can be said that in a conventional policy, the insured or the asset is the subject matter.

After the performance of the contract is completed, no matter how much premium the policyholder has paid, as long as the insured object has no accidental loss in the contract, the premium will be fully owned by the insurance company.

It is also somewhat similar to securities, futures, and foreign exchange option contracts, and the subject matter is nothing more than the Thai real estate market.

Through this contract, there is no need for an agreement associated with the physical object, so that the transaction quantity between the buyer and the seller can be infinitely multiplied without the amount of the physical object.

The contract text given by Capital One is equivalent to buying a weighted option contract for value-preserving insurance for real estate investment in Thailand.

If home values ​​go up, Capital One's insurance premiums are for naught.Capital One benefits only when home values ​​decline.

This contract is similar to an insurance contract in that the bank undertakes the performance duties similar to that of an insurance company.

The insurance payout ratio is one of the important parameters in an insurance policy.

The contract text given by Capital One naturally also has this kind of compensation ratio parameter.

For a contract with an underlying compensation value of US$[-] million, Capital One needs to pay an annual premium of [-]%.

In other words, if Capital One buys a credit default swap with a maximum payout value of US$100 million, it needs to pay an annual premium of US$100 million.Capital One stands to lose $[-] million if the price of the house goes up or is higher than it was worth when he bought the contract.

Capital One can get compensation from HSBC only when the price of the house is lower than the value of the underlying purchase.

The compensation amount is calculated based on the loss value of the property insured by Capital One.

For example, according to statistics, the average price of real estate in Bangkok is US$[-] per square meter.

So as long as the weighted value of the property in Thailand is higher than or equal to US$100, Capital One will lose US$100 million if it buys a credit default swap of US$[-] million.

Only when the average property price in Thailand is less than US$[-] can Capital One receive compensation from Standard Chartered.

The amount of compensation depends on the actual price of the comprehensive weighted price of Thailand's real estate when Capital One redeems the contract or when the option contract expires.

If it is US$[-], Capital One can obtain the compensation amount from Standard Chartered. The lower the price, the greater the compensation amount from HSBC.

The payout amount is calculated as ten dollars multiplied by 5.00%.

Putting down the document in his hand, Cohen Meriwether rubbed his nose. He had no choice but to worry that he would laugh out loud. It would be bad if he scared the fat sheep in front of him away.

After kneading several times in a row, Cohen Meriwether finally restrained the urge to laugh, he looked at Shen Jiannan sincerely and said.

"Shen, as a friend, please forgive me, this is really a very stupid investment."

No loss is a top banker.

Shen Jiannan raised his eyebrows lightly. He can still be so hypocritical at this time. No wonder this guy is in charge of HSBC.

What expressions will these guys have in the future?

Shen Jiannan also suddenly wanted to laugh.

Fortunately, this guy has a strong control.

He straightened his whole face, feeling like he wanted to twitch, and said.

"I'm only concerned about your bank's solvency when the Thai real estate index falls, yes. I'm worried that your bank won't have the money to compensate me."

Chapter 11 18 houses (accumulated rewards plus updates) (revised)

What?

Worried about HSBC's solvency?

Are you stupid?

This is HSBC!

HSBC, one of the most well-known banks in the world, is also one of the major issuers of Hong Kong dollars, with a market capitalization of 530 billion, ranking second in the No.30 global bank.

You already look stupid for short selling Thai real estate, and you still doubt our solvency?

Arrogant, arrogant nouveau riche.

This is the evaluation of Shen Jiannan by Cohen Meriwether and his team.

But now, Cohen Meriwether was doubting.How did such a stupid guy make so much money.

It's not hubris, it's total lack of brains.

Cohen Meriwether couldn't help but look at an idiot in his eyes.

It's like, a bank clerk looks at an ordinary Hong Kong citizen with a monthly salary of only [-].

Then this guy also said, I am very worried that one day your bank will fail and I will not be able to withdraw the money.

What will you pay me for?

At this time, Cohen Meriwether was obviously the bank teller.

Taking a closer look at Shen Jiannan, Cohen Meriwether quickly glanced at the faces of Lu Xinyue and Kardashian.

Lu Xinyue is elegant and wearing a white suit, looking very refined and elegant.

Kardashian is sexy and charming, the buttons of her clothes seem to be broken at any time, subconsciously there seems to be a kind of nobility and pride imprinted in her bones, she is not at all like the bodyguard Shen Jiannan said.

Could it be that she and her family are the actual controllers of Capital One?

Cohen Meriwether's eyes changed several times, and the way he looked at Shen Jiannan changed.

This guy, can't he eat soft rice?

Soon Cohen Meriwether was relieved. If this is a guy who eats soft food, then everything makes sense.

Jealousy, envy, and a feeling that a good cabbage has been beaten by a pig.

Some people in HSBC can't stand it anymore.

How proud and enviable it is to be able to work at HSBC, and now some people dare to look down on HSBC.

"Shen Sheng, I'm sorry, are you serious?"

"Do you think I'm joking? I'm sorry, my time is precious. If I have this time, I might as well go back to sleep."

As Shen Jiannan spoke, a signal was conveyed in his eyes at the same time.

Are you an idiot to ask such a question.

For an instant.

The people at HSBC were all stimulated.

This guy in front of him is simply an arrogant super idiot.

But I have to say that HSBC executives are still very professional. Facing the business that came to him, Cohen Meriwether showed the professionalism he should have.

"Shen, since you have confirmed it is correct. We will customize a pay-as-you-go compensation method for you, but the condition is that when the weighted average index of real estate in Thailand rises, you must pay HSBC a monthly deposit sufficient for the performance of the contract."

"Of course. This is what it should be, but for the convenience of settlement, I suggest that the subject matter be valued in U.S. dollars and settled in U.S. dollars."

U.S. dollar, the international unit of settlement.

Its broadness is undoubtedly the most suitable for this kind of cross-border investment agreement. Whether it is valuation or settlement, it is the most convenient to use the US dollar as the unit.

From the standpoint of HSBC, this is a sure-fire deal.

Cohen Meriwether spoke without thinking.

"as you wish!"

According to the contract template given by Capital One, HSBC confirmed it without any modification.

Charlie Cao took out the prepared legal contract and confidentiality agreement and handed it to the HSBC group again.

The same is five servings of each, one serving per person.

"This is my preliminary customized contract and non-disclosure agreement. Please check if there is any problem."

Professional things should naturally be handed over to professional people.

HSBC took over the contract, and Cohen Meriway immediately arranged for the legal department to start a cross-check.

Multiple reviews and confirmations were carried out word by word, and the head of the legal department nodded to Cohen Meriway to confirm the results.

There is no problem.

Cohen Meriway gritted his teeth to hold back the ecstasy, and several other HSBC executives present also forced a serious look.

But the twitching muscles on their faces still showed their hearts.

This is simply a money-losing business.

According to the contract given by Capital One, HSBC has almost no possibility of losing money.

Who doesn't know that in Thailand now, even Li Daxiao, who claims to be the last clean stream in the capital market, has always praised Thailand in First Finance and Economics.

With the complete liberalization of the capital market, Thailand's potential is no less than Singapore's position in Nanyang.All countries are now in a period of rapid development. As the economy takes off, real estate prices will only go up all the way.

Thailand’s fixed exchange rate keeps Thai baht assets from depreciating against the U.S. dollar. With the depreciation of the U.S. dollar and the appreciation of the yen, Thailand has gained the greatest export advantage.

Countless speculative capital and value-preserving capital are flowing into Thailand.

Whether it is industry, finance, or real estate, Thailand now has the potential to reach Hong Kong, Singapore and even surpass it to become the number one financial center in Asia.

Can such an idiot still be treated as soft food?God is so unfair.

Cohen Murray couldn't help being suspicious.

He really doesn't understand why Capital One has any reason to short-sell Thailand's real estate market.

Resisting the urge to laugh, and confirming that there are no problems with the agreement and contract, Cohen Murray said.

"Shen, we can sell you a credit default swap of one to five million dollars."

Bang bang bang!

After finishing speaking, Cohen Meriwether's heart beat wildly several times involuntarily.

He opened his mouth wide at the lion.

In terms of insurance, HSBC's overall sales in Hong Kong are less than US$500 million per year.

However, the big fat sheep in front of him was too fat, and Cohen Meriwether felt that it would be a pity for his stupidity not to slaughter it once.

"500?"

Shen Jiannan felt greatly humiliated.

This is so much contemptuous.

Shen Jiannan's white eyes startled Cohen Meriwether, and he regretted that his lion opened his mouth.

So this guy is not an idiot!

"No, no, $100 million is fine, not the minimum of $500 million."

Shen Jiannan didn't bother to pay attention to the group of bankers who were blinded by profit, so he raised his eyebrows and said casually.