Recast youth

Chapter 1246 The initial benefits brought by subprime mortgages

"You went to Zurich to find Kong Jingke?"

Wen Yueqi asked on the phone.

"No, I came here with Chen Huang to look at an off-road vehicle." Ye Feng will never make a mistake in this kind of death penalty. Regardless of whether he is with Sister Qi or not, he will never make a mistake in this question. Those who can get this question wrong are basically straight men with advanced stage cancer and are hopeless.

"Oh, so it is."

Wen Yueqi didn't ask deeply, and then said with a smile: "You happen to be with Chen Huang. I won't call him later. I called to tell you that through the credit default swap signed with several hedge funds, , Obsidian Fund generated income.”

"How many?"

When Ye Feng heard what Wen Yueqi said, he knew that the subprime mortgage crisis in the United States was gradually breaking out. The so-called credit defaults were also simple. For example, Fannie Mae and Freddie Mac in the United States provided loans to customers. In order to avoid bad credit, they invested in reinsurance business. After the customer defaulted, Fannie and Freddie had problems with their capital chain, so they claimed compensation from the reinsurance company.

Many reinsurance institutions (including banks here) went bankrupt in the past life because of this, and the claim amounts were unbelievably high. After the financial crisis passed, some financial scholars also analyzed it and found that all those sitting at the table were gamblers. It is said that shorting the subprime mortgage market must be a sure win. There are also many institutions that pay 10% or even 20% of their principal in a year, but finally they can't bear the losses and stop.

It’s not that they couldn’t see it accurately, it just means that the time hasn’t come yet.

It is just the right time for Ye Feng and Wen Yueqi to enter the market. Obsidian Fund is currently doing the same thing. It is betting all the money with major hedge funds on the occurrence of the subprime mortgage crisis in the United States. If they lose, they will pay high premiums every year. Winning is a huge reward.

"The current revenue is 1.5 million U.S. dollars, and with the addition of this King Kong, it is 2 million U.S. dollars."

Wen Yueqi reported the accounts to Ye Feng, and then said: "I called you. On the one hand, I want to tell you about this matter. On the other hand, I want to ask you, what are you going to do with the 2 million U.S. dollars? Do you want to keep it? Or continue?"

Ye Feng thought for a while.

In the previous life, the subprime mortgage crisis in the United States started in mid-2006 and would really erupt on a large scale in 2007. Therefore, it is not yet time to completely close the network, so you can continue to increase your bets and make a fortune.

Of course, there are risks here, that is, there are many people who are betting against investment banks, insurance companies, and banks. They must also be prepared to be prepared for the sudden outbreak of the subprime mortgage crisis, and then the betting companies will suddenly If the company goes bankrupt and cannot pay out any money, it will be a real disaster. Not to mention the remuneration, the principal will not be recovered.

Soon, Ye Feng made up his mind and said to Wen Yueqi: "It's too early to stop now. Sister Qi, please work hard and cut the 2 million US dollars into multiple parts, and then use high premiums to lure some big investors." Institutions will bet against us and try to bet on short-term bets. Around March next year, we will slowly start to stop."

Then, Ye Feng said: "By the way, Sister Qi, try to find some well-known investment banks that are guaranteed not to go bankrupt to do credit default swaps. Don't go to small investment banks."

"Afraid that investment banks and insurance companies will go bankrupt and lose money?" Wen Yueqi noticed what Ye Feng was thinking.

"Both Fannie Mae and Freddie Mac may be unable to bear the risks, not to mention other investment banks?"

Speaking of this, Ye Feng suddenly remembered something and quickly asked Wen Yueqi: "By the way, Sister Qi, have you signed a credit default swap with Lehman Brothers?"

Wen Yueqi said: "I invested US$3000 million in Lehman Brothers."

Ye Feng suddenly had a headache.

Lehman Brothers is the fourth largest investment bank in the United States and is extremely famous. The key is that Lehman Brothers failed to survive the financial crisis in its previous life. After the acquisition negotiations failed, it filed for bankruptcy protection.And unlike Freddie Mac and Fannie Mae, the U.S. federal government rescued Fannie Mae and Freddie Mac, but refused to rescue Lehman Brothers. This old top investment bank founded in 1850 also went bankrupt.

Ye Feng was secretly annoyed that when he was in the United States, he had thought about the collapse of the Lehman Brothers investment bank, but in the end he forgot to remind Sister Qi to avoid lightning when she signed credit default swaps with major investment banks.

Ye Feng couldn't help but ask: "How much money will we lose if we withdraw our principal from Lehman Brothers now?"

"The premium for signing a contract with Lehman Brothers is 5 points. If we withdraw now, it will be equivalent to a loss of 150 million dollars."

Then Wen Yueqi asked: "Do you think Lehman Brothers will collapse? In fact, you don't have to worry so much. Lehman Brothers is currently one of the most powerful underwriters and traders of stocks and bonds in the world, and has many clients from world-renowned companies. At the same time, the company also serves as an important financial advisor to many multinational companies and governments around the world. Many of the best international analysts recognized by the industry are also in their company, so it is not so easy to go bankrupt."

When Wen Yueqi said this, Ye Feng was unable to respond for the time being.

Because Wen Yueqi is different from him. He is a reborn person. He has experienced many things. Ye Feng now has such a feeling about many large international companies, that is: watching him build Zhulou, watching him entertain guests, watching him The building collapsed.

But Wen Yueqi has never seen it.

Just like in the previous life, Ye Feng would not believe anyone who told Ye Feng that Alibaba, Tencent, and Apple would go bankrupt. He might argue with the other party, how could it be possible for these companies to go bankrupt?Do you know that Alibaba, Tencent, and Apple are all cash flow companies?

Wen Yueqi also has the same mentality now, so Ye Feng does not intend to correct it, but quickly turns around in his mind. Now he withdraws the funds from Lehman and loses 150 million U.S. dollars. If he does not withdraw the capital, he may lose 3000 million U.S. dollars and become Lehman. Creditors of the Mann Brothers.

Well, Lehman Brothers had about $6100 billion in debt when it collapsed. Just wait and see as it collects debts and repays them at the same time.

Of course, it does not necessarily mean a loss, it just means that there is a possibility, because it is August 2006, and there are still two years before Lehman's financial situation collapses.

So you can also take a gamble.

After all, at the current exchange rate, 150 million knives is equivalent to 1200 million yuan. It was lost like this, and Ye Feng felt a little distressed. In addition, what Obsidian Fund is currently doing is also very eye-catching. It has been doing credit default mutual funds with major investment banks. In other words, it means shorting the real estate subprime mortgage market. There is nothing wrong with making money by investing, but it is a bit scary if all your investments make money.

So Ye Feng was thinking that if the pole of Lehman Brothers broke without time to mention it, it would not be unacceptable. At least it would make their Obsidian Fund less eye-catching.

At this time, Ye Feng's mentality became much calmer. He said into the phone: "Okay, then we will wait half a year to a year and see. You can make the final decision on the specific matters."

"kindness."

Wen Yueqi nodded: "Then I'm going to take a shower first, and you can rest early."

"Good night."

When Ye Feng heard the word "bath", his heart moved, and he almost lost the sense of the image, and then he abruptly erased the sense of the image.

(End of this chapter)