Reborn Financial Overlord

The spread, as the name suggests, is the difference in interest rates.

In economic regulation, interest rates are often adjusted according to the economic level and inflation expectations of the currency-issuing country, resulting in regional interest rate differences.

And this kind of difference is nothing new to professional financial practitioners. Many professional financial practitioners conduct cross-regional arbitrage investment based on the premise of risks and benefits, considering the relevant factors of exchange rates.

Those who meet are not difficult, those who are difficult will not.

So how to convert a currency with a low interest rate into a currency with a high interest rate, so as to earn this interest rate difference?

假设一年期的英镑存款利率为5.5%，同期的美元存款利率为5%，它们之间的利差为0.5%。再假设它们之间的当期汇率为1英镑=1.5美元，那么如果不考虑汇率波动因素的话，一笔1500美元一年期存款的本息之和为1575美元【1500美元×（1+5%）】，折成英镑为1050英镑（1575美元÷1.5美元）。

但如把这1500美元先兑换成1000英镑，去存上一年的本息之和则为1055英镑【1000英镑×（1+5.5%）】。简言之，同样数额的存款，存英镑要比存美元多0.5%的利差。

Of course, this can only be achieved when the exchange rate remains unchanged.

换句话说，如果到了一年存款期满时，它们之间的汇率波动为1英镑=1.48美元，则用英镑存款的1055英镑本息之和折合成美元为1561.4 美元（1055英镑×1.48美元），反而比用美元存款少了13.6美元（1575美元－1561.4美元），这是因为一年间英镑与美元之间的汇差达 1.33%之故【（1.50美元－1.48美元）/1.50美元】。

Therefore, when the exchange rate difference is greater than the interest rate difference, the arbitrage trade is not worth the loss.

Then came the problem.

The Finnish mark implements a pegged exchange rate system, which is mainly pegged to the ECU of the European Community. However, since the proportion of the ECU is centered on the German mark, it is equivalent to the Finnish mark pegged to the German mark.

What is a pegged exchange rate system?

In the pegged exchange rate system, a country's currency maintains a relatively stable exchange rate with other one or a certain basket of currencies, that is, the selected currency is pegged.The domestic currency fluctuates with the fluctuation of the selected currency, but the exchange rate between each other is relatively fixed or only fluctuates within a small range, generally no more than 1%. If the market exchange rate fluctuates beyond this range, the central bank will intervene in the market. Stabilize the market exchange rate and maintain the effectiveness of the pegged exchange rate system.

In the eyes of professional financial practitioners, arbitrage trading investment is the most common trading investment, just like eating and drinking water, there is nothing strange about it.But for people other than professional financial practitioners, many people don't understand what interest rate spread is at all, or in other words, they don't know what impact interest rate spread has on individuals.

Just like a lumberjack, he can feel the growth rings of a tree with his hands, but he doesn't know how to make a generator.And a mechanic who manufactures generators can manufacture generators, but he doesn't know how to save costs in mining.

But what if someone spilled the secrets of the trade or how to make money?

London, England.

Jari Litmanen, wearing a white hat and chef's uniform, is leaning against the kitchen with a newspaper and reading.

The Sun, the UK's largest-selling newspaper, sells nearly 300 million copies a day.

However, although the sales and popularity of "The Sun" are very high, many people have a bad impression of "The Sun", especially the intellectual circles.Intellectual circles criticized The Sun for its rough, unprofessional, and unbiased way of reporting news, often using sensationalism to stimulate sales.

Critics of the "Sun" mainly point to the large amount of vulgar, sensational content and unprofessional writing techniques in the newspaper, as well as the political stance that favors Murdoch's preferences. .

For example, at the end of the Falklands War, when the Argentine warship General Belgrano was sunk, the newspaper wrote "Gotcha!" as the headline.

Despite this, there are also surveys that among the ABC1 class of senior readers, the readers of "The Sun" are twice as high as the knowledge-based and high-end newspaper "The Times" of the same group.

reason?

Well... Since 1970, "The Sun" has launched the famous "Three Pages of Girls". The third page of girls was originally just a photo of a famous model, and later the form was changed to a daily appearance.

The figure is so slender that it is easy to read, and the beautiful body and curvaceous figure will always make people never get tired of it.

Of course, the intelligentsia will only read such newspapers secretly and will not openly show it to the public. Only low-level people like Jari Litmanen will openly read newspapers in the kitchen.

Jari Litmanen is a little guy, of course, he doesn't think so himself.

Last year, he was still a bakery owner in Finland, but with the weakening of the Finnish economy and the small population of Finland, Jari Litmanen had to move the bakery to London to seek better development.

Jari Litmanen is very lucky. The new bakery has been on the right track not long after it opened. It can make a net profit of nearly [-] pounds a month. He is also a man who takes care of his family. Go take care of the stray women in the street, but still send the money back home in Finland on time.

There, his wife lives with their children.

Holding the newspaper in his hand, Jari Litmanen lit a cigarette. Amidst the smoke, he first flipped through the front page of the newspaper.

Jari Litmanen has a habit of always putting good food behind, so although he bought the "Sun" to read the three o'clock girls, he still read other news first.

Front page, headlines.

A photo of a Chinese man is impressively listed.

Jari Litmanen became interested. In the whole of Europe, Chinese are as rare as giant pandas. Suddenly, a Chinese appeared on the front page of "The Sun", which made him feel very interesting.

Be wary of the depreciation crisis of the Finnish mark.

Author: Shen Jiannan.

"The economy is a way of exchanging wealth. Hundreds of years of economic market show that there will always be ups and downs in the operation of the economy, which we call economic cycles.

Statistics from the Finnish Labor Department: In the second quarter, the national unemployment rate increased by 5.00% to 15.00%. "

"..."

"The Bank of Finland has decided to cut the benchmark interest rate by [-] percent."

"Not long ago, the German central bank raised the benchmark interest rate, the central bank's implementation rate reached 5.00% .

"..."

"The nature of capital is to pursue profits. Finland's [-]% interest rate can't even beat inflation, which has lost its attractiveness for capital. If you take the Finnish mark to deposit in a German bank, you will get more income. "

"..."

"We do not want to see Finland plunged into a currency crisis because of an economic crisis."

"..."

"But we have to remind the Bank of Finland that it is time to see reality in order to avoid a bigger crisis."

"..."

The big headline made Jari Litmanen's lazy attitude stop for a moment. He is a Finn, and all the money he earns is sent home and stored in Finland.

If your own money depreciates, even if it does not depreciate, you can get nearly [-]% more income by depositing money from Finland in a German bank.

As if suddenly enlightened, Jari Litmanen almost didn't slap himself in the face. Why didn't he realize that he lost a lot of interest in Finland for nothing in one year.

Without any hesitation, Jari Litmanen put down his cigarette butt and picked up the phone to call home in Finland, ignoring the three o'clock girl.

Soon, the phone was connected, and his wife's familiar voice came from the phone.

"Minnie, it's me. Are you asleep?"

"Oh, oh...not yet. What's up."

"Tomorrow you take our savings to the bank and exchange them for German marks. We deposit the money in a German bank, so that we can earn four more points of interest every year..."

"..."

Chapter 19 Finland Exploding in Place (All book friends accumulated rewards and updates)

What is the concept of an interest rate difference of [-] percent?

Uh... it's really nothing, that is, it makes God crazy.Later, when the bank's benchmark interest rate was at [-]%, Shen Jiannan packaged and sold many wealth management product packages, and the [-]% profit was a little [-]% higher than the interest rate of commercial banks.

result?

Although every failed financial product package is always complained and abused, people still buy it in an endless stream.Even, there is often a list of the same customers appearing in it.In the era of the bank's benchmark interest rate of [-]%, the interest rate of commercial banks has dropped to [-]%. The wealth management product package launched by a well-known Internet platform can absorb hundreds of billions of funds at an expectation of [-]%.

Risks are always equal to benefits. Except for state-owned basic banks, commercial banks may go bankrupt, not to mention Internet platforms, but the interest rate difference is only [-]%, and many people still yearn for it.

So what would happen if it was the minimum risk-return differential between Bank Negara and Bank Negara?

helsinki.

Minnie Litmanning put her arms around her lover's robust body, and told her husband's confession.

"He said that depositing money in a German bank can earn more than [-]% more than a Finnish bank every year."

"Jesus. Is this true?"

"Well. That's right. The Bundesbank raised interest rates not long ago, and now the deposit rate has reached more than 5.00%. Some commercial banks will have a higher interest rate."

"Damn it. Our deposit rate is only [-]. No, I'm going to give her a call."

"..."

The relationship between people...is very complicated. According to the theory of six-dimensional space, if you know one person, you may know the whole world.

Of course, a theory is just a theory.

But if a person has a wife, a lover, friends, brothers and sisters, he will be like a virus, spreading news to the whole world at an unimaginable speed.

Finland exploded!

Like a bomb, it exploded on the calm lake.

Postal Savings Bank, one of the five largest commercial banks in Finland, announced a reorganization and split not long ago due to the outbreak of bad debts due to the downturn in the real estate market.

However, behind the Postal Savings Bank is the National Bank. With the injection of new assets, the Postal Savings Bank has regained its vitality.

Helsinki, Helis Street Business Center.

Early in the morning, Manning rushed to the bank to get ready to go to work on time. When he walked to the door of the bank, he was shocked by the situation at the door of the bank.For some unknown reason, dozens of people lined up in a long line, holding deposits or bank cards in their hands, as if they were about to withdraw money.

Finns don't like to join in the fun. Usually, even at the bus station, it is difficult to see so many people.

Manning was a little confused by the inexplicable situation, but he didn't think much about it. Postal Savings Bank had just undergone a reorganization and split. It is normal for many residents to worry about the credibility of Postal Savings Bank.

Soon, the gate of the bank was opened on time by the security personnel.

When Manning walked from the backstage to the counter, he started his day's work with the most cordial smile on his face.

"Hello. Help me take out all the money in the bank card."

"Oh. No problem."

"..."

Thirty thousand marks.

After the depositor entered the password, Manning skillfully operated the computer and took out the depositor's money and handed it to the customer.

One, two, three, four...

Gradually, Manning felt something was wrong. It seemed that today, there were many more customers withdrawing money than depositing money.

For ordinary Finnish people, many people don’t know the impact of interest rates on individuals, but knowing that they don’t have to do anything, they only need to get on a plane and travel around, and they can earn an objective income every year. People will be able to sit still.It's just ordinary people, like muddy legs with muddy feet, they don't think about the emperor's dream, they only think about the gains and losses in the bowl, they can get more benefits, they are already satisfied, and they don't want extravagance What a fortune.

For professional speculators and professional financial practitioners, the heart is much more greedy.

To borrow the words of a well-known speculator, if you want to earn 100 million in your life, then work honestly, and you will definitely earn 100 million in your life. If you want to earn 1000 million, then invest in securities, a high-quality stock , can allow you to obtain tens of millions of benefits in your lifetime.

However, an investment with equal risks and returns is already a good investment. The higher the investment, the higher the risk.

Are professional speculators afraid of risks?

No, they are never afraid of risks, they are only afraid of no profit, and in order to obtain higher profits, they have to be more professional than many ordinary people.

London, Canary Wharf.

Zlatan Ibrahimovic is sitting in the office, holding a cup of coffee, and flipping through the newspapers he bought from the street. He is a professional stock trader, but in the past two years, the situation in the British stock market is not the same. Well, his job is getting a little boring.

"The Sun" is one of Ibrahimovic's favorite newspapers. Although it is ridiculed by many people as low-level, indecent, and vulgar, the modern three-point girl in the newspaper always makes people feel beautiful. pleasing to the eye.

Some are famous models.

Ibrahimovic doesn't care about the grandeur of those intellectuals and hypocrites. As far as he knows, even university professors read "The Sun".

After taking a sip of coffee, Ibrahimovic flicked the newspaper, raised his legs, and habitually leaned back on the office chair, ready to admire the fiery figure of the three o'clock girl.

Be wary of the depreciation crisis of the Finnish mark.

Author, Shen Jiannan.

An oriental face attracted Zlatan Ibrahimovic's attention. He was a little curious and read the content of the newspaper. You know, it is incredible that orientals can publish newspapers in the UK.

"The economic barometer of the stock market can be seen from HEX in Helsinki, Finland. Since June 1991, the stock market has fallen by 6% from a year-on-year high point..."

"......"

"The Bank of Finland has decided to cut the benchmark interest rate by [-] percent."

"..."

"Finland is approaching a tipping point of unsustainable economic growth."

"..."

"Not long ago, the German central bank raised the benchmark interest rate, the central bank's implementation rate reached 5.00% point six, and the commercial bank interest rate even reached [-]..."

"..."

Unknowingly, Ibrahimovic's leisure and laziness turned into tension, and his body leaning on the office chair also collapsed.