My Age of Investment

   Chapter 753

   "No problem! Morgan Stanley took this business."

  Since all the risks have been isolated, Mai Jinheng felt that there was nothing to worry about, so he no longer hesitated, and happily agreed to cooperate.

  Belankfan has just been thinking about it, without interrupting.

  At this moment, he stared at Xia Jingxing, “Dalun, the revenue of synthetic CDO is not too high, and it will not be a very popular product. With your funds, it is enough to leverage the CDS market of tens of billions of dollars.

  I can tell you for sure, we can’t sell so many bonds.

  If you want to short the subprime mortgage bonds, you have to buy ordinary CDS from the market. "

  Xia Jingxing naturally understands the logic, and he does not plan to bet all on synthetic CDOs.

  If the market sales situation is ideal, he actually intends to hold all the synthetic CDOs, because there is collateral, and it is stable, but the actual conditions do not allow him, and he has no choice.

  If this forces him to maximize profit, he still has to buy some ordinary CDS that circulates in a small range among major investment banks and hedge funds.

  The profit model of these ordinary CDSs is slightly different from that of synthetic CDOs.

  The latter has the collateral of high-quality bonds, so it is not afraid of repayment.

  And the ordinary CDS bought, if provided by the unlucky people like Lehman and AIG, the claim is a problem.

  In fact, in addition to the way of claiming, there is also a profit model waiting for CDS to increase in price.

   is just this profit model, the profit will not be particularly large.

  If the subordinated debt defaults on a large scale, it is equivalent to a risk, and the value of CDS will rise rapidly.

  At this time, you can wait for the CDS provider to be responsible for compensation, or you can sell the CDS to some financial institutions that need safe-haven assets.

  Because many financial institutions hold too many subprime bond assets, once there is a subprime mortgage crisis, the subprime bond’s rating drops and the book loses, they need to buy CDS to offset the loss.

  As for the CDS sold by oneself, whether he can get compensation in the end is not his business, and it has nothing to do with him.

  In fact, many people have underestimated the extent of the subprime mortgage crisis. When seeking safe-haven assets and buying large amounts of CDS, they misjudged the situation and believed that they were the wrong company.

  The price is that the solvency rate of CDS has a big problem!

  In short, ordinary CDS can also be played, but the operation is more difficult, and higher requirements are put forward for market control and timing of sales.

  Similar to playing drums and passing flowers, it will explode depending on whose hands it is passed.

  Even the CDS provided by Lehman and AIG can be bought. In the earliest stage of the subprime mortgage crisis, the two companies had the ability to pay a certain amount of cash, but not later.

  Xia Jingxing thought for a while, nodded and said: "Yes, you will still need to match up some more deals from the two of you at that time."

  Berlank Van Haha laughed, “You’re looking for the right person. You only need to pay enough premiums... and commissions. If you want more counterparties, we can get you from Goldman Sachs.

  But Darren, you have to give me an accurate number. Normal CDS is not like synthetic CDO, and there are many players involved. "

  Xia Jingxing glanced at Bellan Kefan, who meant that he was worried that he would not have enough money.

  Actually, Bellan Kefan was right. Xia Jingxing’s billions of dollars were scattered to the CDS trading market, which is not a particularly huge number, and the market is completely affordable.

  Xia Jingxing will no longer say that there is no upper limit. After thinking for a while, he replied: "This requires our internal statistics and analysis. For the time being, we cannot give you a particularly accurate figure."

   "Okay, when your statistics are done, just let us know."

As soon as Belank’s Sanskrit voice fell, Mai Jinheng immediately took over and said, “Dylan, we at Morgan Stanley are the top three intermediaries in the CDO and CDS trading markets. ."

  Beilan Kefan glanced at Mai Jinheng, still wanting to grab business?

  Xia Jingxing smiled without saying a word.

  Whether the two companies fight each other, it is also convenient for him to negotiate a more favorable commission price.

  Xia Jingxing did not mention the subprime mortgage bond anymore, and chatted with Mai Jinheng and Belan Kefan some gossip.

  After a while, the two investment bank CEOs left with their subordinates.

   sent away the two people, Xia Jingxing returned to the house and saw Peter Thiel still standing on the balcony, looking into the distance, motionless, he walked over.

   "Peter, I have told you all the plans now, what do you think? Are you confident to work on a big deal with me?"

  Peter Thiel looked back at Xia Jingxing, his expression a little worried.

   "Darren, how come I feel a little unsure in my heart."

  Peter Thiel did not lie, he was really frightened by Xia Jingxing’s grand plan.

  Billions of U.S. dollars will not be kept, and all will be smashed into the subprime mortgage bond and its derivatives market.

  He is very aware of the risks involved, and if you are not careful, billions of dollars will be ruthlessly swallowed by the market.

   And Xia Jingxing’s approach of not doing any risk hedging, anyone who reads it will subconsciously feel palpitation, which is too reckless.

  That's billions of dollars, just put it on the gaming table casually like this.

  He felt a little pain when he saw it.

  "Dalun, I suggest you consider it carefully, or take some money, such as hundreds of millions of dollars to invest in subprime mortgage derivatives."

  Peter Thiel sighed, “Alas, the financial market is the most ruthless. Don’t get confused by some research or market news.”

  Xia Jingxing did not expect Peter Thiel to admonish him like this, and smiled, “Don’t think about it, I’ve already decided, 3 billion US dollars, don’t keep a single point, all will be put in.”

   Gazing into the distance, Xia Jingxing had a fire burning in his eyes, “This is an opportunity for Envision Capital to rise on Wall Street. I will not leave myself any way out.”

  Xia Jingxing's performance was very firm, which made Peter Thiel sigh slightly in his heart, not knowing what to evaluate.

   "Okay, Darren, since you have made a decision, then I won't persuade you anymore. I can only remind you, be careful."

  Xia Jingxing nodded, smiled and said, "Thank you! I will pay attention."

  Next, Peter Thiel also left.

  In the entire apartment, only Xia Jingxing, Jiang Ping and Liu Hai are left.

  The three people sat on the sofa and started talking.

   "How did you two chat with the people from Goldman Sachs and Morgan Stanley? Have you heard any useful news?"

  Xia Jingxing looked at the two of them, and his task was to learn from the sidelines to understand some of the views of other senior executives of the two investment banks on subprime bonds and derivatives.

   "I asked, but they were very vigilant and kept going in circles, refusing to give a particularly clear point of view." Liu Hai spread his hands, his face was full of helplessness.

  Jiang Ping said: “It should have been specially ordered by the two CEOs. They both knew that they weren’t here to play today, they had a mission, and they would confess something easily.”

   "It doesn't matter if you don't say it, anyway, we have made up our minds, we must do it hard!"

   Liu Hai and Jiang Ping looked at the confident boss, and glanced at each other.

   Representative Jiang Ping said: “Jingxing, is 3 billion US dollars really invested at once? Do you want to invest a few hundred million to see the situation, and then make adjustments according to the situation.”

  Xia Jingxing glanced at Jiang Ping, the latter's face was a little nervous, and then at the bangs, it was almost the same expression.

  He immediately understood the problem.

  It is estimated that they have actually arrived on the battlefield, and the two of them are a little nervous and worried.

  What they want to do is not small, it takes some courage and courage to pull the trigger.

   "It's like marching and fighting. The war is about to start, and we cannot waver."

  Xia Jingxing patted the shoulders of the two of them, "We must have confidence in our research results!"

  The two took a long breath and nodded, their eyes firmed a lot.

  (End of this chapter)