Manhattan Reborn 1978

new York.

Manhattan area.

The three Davids came out of the restaurant and met the four bodyguards and others, and they kept silent in a tacit agreement.

Everyone, enjoying the bright sunshine in the autumn afternoon, strolled towards Wall Street.

Gayden Milken, this name is very unfamiliar to David~

But his face was [-]% similar to Michael Douglas, letting David know that this person was most likely a key figure and protagonist in a certain movie!

This morning, David was in the conference room and figured out something ~

All wealth in the world is created by people with their wisdom and hands~

David now has available funds. It is good to invest in bonds, stocks, futures, etc., but it is not as good as looking for people with potential, ability, ambition, and desire to succeed, and investing in them!

Just like what David had done to the chef Biao Ge, the head of the Angel Fund Ben Likert, the accountant Olena, the lawyer George, Professor Nash and his wife, Coppola and Mario, and Yuri who has the face of Uncle Cage. Orlov, the old tailor’s clothing designer apprentice Shirley, and others~

(Yes, Shirley has not appeared for a long, long time. In the future, this Chinese girl will have more opportunities to appear!)

In David's opinion, investing in people who are tangible, able to go to each other and listen to their voices is far safer than investing in a future full of uncertainty. .

. . .

Wall Street has always had its own set of operating rules and hidden rules.

If David wants to make a name for himself here, it is inevitable to become one of these "vampires". .

The elites of Wall Street have been touting the slogan "It's all about money" all day long, but in their hearts they all don't want to become a Wall Street super boss on par with JP Morgan!

David believed that this Douglas. .No, Mr. Gayden Milken will definitely surprise him!

. . .

Everyone returned to Stanley and went into David's office to sit down.

David spread his hands to Sam and Leslie: "I know you will have a lot of questions, just ask them~"

Leslie looked at Sam, thought for a moment, and then said first: "Why junk bonds?"

"For this question, I think Sam can first introduce to us some of the impact on the financial industry after the Federal Reserve raises interest rates~"

"Sam?"

"ok~"

After Sam was named, he smiled and shook his head at Leslie: "What the Federal Reserve wants to control when raising interest rates is the overnight lending rate, which is the short-term interest rate."

"The impact of this interest rate increase on the financial market is multifaceted~"

"In addition to its impact on the overnight lending market, it also has a great impact on short-term market interest rates such as the deposit and loan market, repo market, bill market, discount, and consumer credit markets~"

"But its impact on stocks, fixed-rate national bonds, investment funds and financial derivatives markets in the capital market, as well as the long-term interest rate market, is not that huge~"

“Treasury bond interest rates, based on national credit, can be said to be risk-free interest rates.”

"The risk-free rate of return in the market usually refers to the ten-year Treasury bond yield as the market benchmark interest rate standard."

"Previously, the floating-rate bonds we wanted to invest in were those that stipulated when they were issued that the bonds would float, increase or decrease regularly with market interest rates, and floating-rate bonds were often medium- and long-term bonds issued by companies and enterprises."

"The interest rates of these medium- and long-term floating-rate bonds will be adjusted every three or six months based on changes in short-term deposit rates."

“And the interest rate adjustment range usually sets a minimum floating limit and an interest rate floating upper limit~”

"This is why David gave up investing in medium and long-term bonds after knowing that short-term floating-rate bonds were wiped out in the market."

Sam's explanation not only paved the way for what he wanted to say later, but also praised David, the boss, for his wise decision. .

David gave Sam a thumbs up cheerfully. .

Being able to flatter your boss is one of the essential skills in the workplace. .

Nothing wrong~

Sam turned around with a smile and continued to Leslie: "Floating rate bonds in the bond market are all formed based on the market risk-free interest rate as the pricing benchmark, plus a risk premium."

"Therefore, the bond interest and financing costs of companies and enterprises that issue floating-rate bonds will continue to rise and increase as the Federal Reserve raises interest rates and interest rates fluctuate regularly~"

"Just like that Gaydon Milken said~"

"The first oil crisis brought a severe credit crunch to the domestic market!"

"Many debt-issuing companies that were originally highly rated have become junk bonds as their own operating profit margins have declined and costs have continued to rise. The company's financial statements have become ugly, their credit ratings have continued to decline, and they have become junk bonds."

"We can now basically confirm that the second oil crisis is coming!"

"At this time, the Federal Reserve's choice to raise interest rates is equivalent to blowing the clarion call for war in advance for the entire currency market and asset market before the oil crisis completely breaks out!"

David is here, and continues: "In the double negative situation of the oil crisis and the Fed's interest rate hike, there must be many companies that have issued bonds or want to issue bonds, and their credit ratings will be seriously underestimated and enter junk bonds. market!"

"Even though I didn't meet Gaydon Milken and tell him about the idea of ​​underwriting bonds for some emerging companies that wanted to issue bonds and raise funds."

"In the next few years, as more and more companies issue junk bonds and the market size becomes larger, he will make his low-risk, high-yield investment portfolio even more prosperous than in previous years. "

Leslie stared at David, nodded slightly, and continued to ask: "What about the risks? Since the credit ratings of these companies have been lowered, it also means that their ability to repay debts is declining, and the default risk of bonds will also increase, right? ?”

"That's right!"

"That's why we need outstanding talents in the industry like Gaydon Milken who are familiar with the market to help us dig for gold in the market, find those companies that are only temporarily in operating difficulties, and send them once to get through the recent period. Help during several years of company development crisis!”

"Man, didn't you go to college? What major did you major in?"

"Um...philosophy~"

"Wow... I wonder how you can attract Livlin's attention..."

"It turns out that he is your professional counterpart..."

"Stop talking nonsense, you bastard!"

"Hahahaha~"

After the joke, David glanced at Sam, who had his mouth closed and his head lowered to hold back laughter, and asked, "Do you have any questions?"

"Um...yes!"

Sam's face showed curiosity, and he pondered for a moment before saying: "You said that Gayden Milken would become the most sought-after God of Wealth on Wall Street because of underwriting junk bonds for emerging companies."

"I can understand this~"

"But these alone don't make him a Wall Street super boss comparable to J.P. Morgan, right?"

"Haha ~ of course!"

"If Gaydon has now become the biggest winner and monopoly in the junk bond market, this is the first step~"

"Then in the second step, he will accumulate a large number of contacts, reputation and resources like a snowball in the process of underwriting bonds for emerging companies."

"These connections and resources that others cannot obtain can help Gayden complete the third step of my plan!"

"Become the Junk Bond King of Wall Street!"

"..."

Neither Leslie nor Sam understood where David got the confidence to make Gaydon Milken king of Wall Street because of junk bonds. .

David did not continue to whet the appetites of the two of them, and directly stated the key point of the third step: "Debt acquisition!"

"Um...you mean leveraged buyout (leo)?"

"Yes~"

Sam's brows furrowed deeper~

He asked very uncertainly: "Do you think... the government will further relax restrictions and controls on the open market in the future?"

"Correct!"

"When these layers of shackles are gradually removed by the government, large amounts of bank deposits, pensions and other over-the-counter funds will enter the open market and join more low-risk, high-yield investments."

“But we all know that the number of high-rated and high-quality assets in the market is limited!”

“What should we do if we find that there are no suitable investment projects after these funds are invested?”

"Wait!~ You just mentioned Morgan Bank and Chase Manhattan Bank to Gayden Milken. Didn't you want them to join the follow-up... leveraged buyout plan?"

"Haha~ Yes and no!"

"If these banks get rid of their shackles and have more projects to invest in, they will mostly choose risk-free or low-risk investments for the sake of ensuring the safety of their principal."

“However, these low-risk investments cannot guarantee that their returns will beat inflation~”

"Then... they will find more low-risk, high-yield investment portfolios in the market and invest~"

"For bonds issued in leveraged buyouts and debt-financed buyouts, the required mortgage entities are not calculated based on the total asset value of the acquirer, but based on the total asset value of the acquiree."

"In short... let's give an example!"

"For example, now I want to use the beverage factory opened by my father to use debt to acquire Coca-Cola and PepsiCo to create the largest beverage group in the world."

"I can send an investment invitation letter to all investors who trust me!"

"In the letter, I will clearly list the details of the company's future development plan after this acquisition, as well as the expected return rate of the bonds issued for the acquisition. Moreover, I can also indicate in the investment contract that after the bond matures, the investor will You can freely choose debt-for-equity swap!”

"As I just said, the large number of high-quality investors we accumulated during the bond underwriting period saw my invitation letter to invest in bonds issued as collateral using the assets and income of two Coke companies. , how will you choose?”

"Haha~ Of course they will choose... to become one of the creditors and shareholders of this super cola company with a monopoly in the world!"

"After all, in everyone's eyes, the names and strengths of PepsiCo and Keke mean that their business conditions are booming and their income and expenditure are stable, etc. Super good things~"

"Who would choose to say no to me?"

"His~~"

Sam took a long breath of air-conditioning, and the way he looked at David changed a little. .

Leslie even smiled bitterly, pointed at David, held it in for more than ten seconds, and then said: "You are... a hostile takeover!!"

"Do you want to be the most... annoying brute on Wall Street?"

"Who would say no to you?"

"The shareholders of those two Coke companies, do they have the intention to kill you?"

"You still have the nerve to ask such a shameless question?"

"Hehe~"

David smiled indifferently. .

"Do you think this is the behavior of a barbarian, a hostile takeover?"

"I'm not the one who actually does these things!"

"I'm just an idea person~ I just wrote a letter to those clients who have money but don't know where to invest it."

"What can I think badly about?"

"Say it again~"

"Guys, you don't seem to have seen that leveraged buyouts have more pros and cons behind them~"

"Leveraged buyout (leo) has a great impact on both the acquiring and the acquired companies!"

(Geely Auto, as we know it, used a leveraged buyout method in 2010, using only 25% of its own funds and 75% of loans to acquire Volvo.)

"We should look at leo from a more objective perspective!"

"It is undeniable that it is a double-edged sword~"

"It is very suitable for companies and enterprises that are short of funds and urgently need to expand their scale. They can use the maximum advantage and the lowest cost to acquire a large company that is unable to operate! ~ Complete the feat of a small fish eating a big fish ~"

"Moreover, using leo financing to carry out corporate mergers and reorganizations can help promote the survival of the fittest mechanism among enterprises. It is also a good opportunity for rectification for those management who have short-sightedness and have no achievements."

"The management methods of some companies are often at the expense of the company's winter benefits and the company's long-term advantages."

"We can use mergers and acquisitions to keep their attention on various actions to improve the company's performance, such as Polyflex's core business, reducing the scale of blind expansion, reducing excessive waste of operating costs, and increasing investment. The proportion of funds for technological transformation, etc.”

"Therefore, Leo can allow this new company after reorganization to attract more investors' enthusiasm, allowing investors to obtain higher returns from this merger and acquisition."

"Of course, leo's double-edged sword also has many shortcomings~"

"In my opinion, its biggest shortcoming is the uncontrollable debt problem that arises after the merger and acquisition process!"

"Debt is the most deadly financial weapon!"

"If you want to destroy a business, the most effective way to ensure that it cannot survive the next economic cycle is to stuff its balance sheet with more costly loans and bonds."

"So, the ability to repay debt is the most important issue we need to consider before preparing a leveraged buyout plan."

David paused briefly, sorted out his thoughts, and gave a concluding speech.

"Leveraged buyouts are one of the best ways to promote horizontal integration between companies, reduce competition, and allow companies in the same industry to complement each other's strengths and create synergy."

"When two companies merge, they will eliminate the redundant parts of each other and use all their own advantages to achieve the effect of 1+1>2."

"At the same time, when the debt ratio of this new company increases, the equity used for acquisition financing will shrink to a certain extent, so that the company's management will be less constrained and interfered by the board of directors in future management~"

“These have all played a very positive role in the future development of the new company!”

After David finished speaking, he spread his hands to Leslie and Sam and said with a smile: "Do you... have any questions?"

Sam shook his head slightly with a serious expression and looked at Leslie.

The way Leslie looked at David became even more strange. .It was like looking at an unknown creature that I had never seen before. .

"... Did you think of all this when you were in a daze this morning?"

David rolled his eyes speechlessly: "How is that possible!!?"

"What I was thinking about in the morning was where to find a talent in the junk bond market to complete this plan~"

"On the contrary, the idea of ​​buying floating-rate bonds was something I came up with on the spur of the moment after I learned about today's interest rate hike."

"I mentioned the leveraged buyout to Pine before in this conference room~"

"At that time, Sam came to attend the meeting later, but you were one of the participants!? You should have heard what I said, right?"

"Are you... a goldfish? Have such a poor memory?"

"Goldfish? What does it have to do with memory?"

"...It doesn't matter~"

Leslie looked at David and showed a speechless smile again, smacked his mouth a few times, and said.

"You...do you trust Gayden Milken that much?"

"Can he really become an indispensable figure in this plan?"

"I do not know either.."

"But if he didn't lie to us~"

“With his experience and ability, he can be of great help to us~”

"During lunch just now, I think you also saw that Gayden Milken does not lack the ambition to achieve greater success~"

"Then... we might as well help him and give his ambition a pair of wings~"

"Let him fly higher!"

After hearing this, Leslie shook his head and expressed his thoughts: "Could it be...that this person can't be Sam?"

"I trust Sam more than Gaydon Milken!"

David raised his eyebrows, looked at Sam and asked, "What do you think?"

Sam frowned and smiled bitterly, then shook his head simply and said, "I can't!"

"This...is not self-effacing~"

"We are completely different people!"

"Milken was able to succeed in the junk bond market because he found a battlefield that was more suitable for him."

"I am more suitable to assist the boss in managing the company on the side, not to be the person who finalizes the plan~"

"As far as I know, there are few people on Wall Street who are more suitable for this plan than Gayden Milken~"

"If he can really agree to our invitation, our plan will definitely be successful~"

Sam looked at David, his expression became playful and continued: "I think... Gayden Milken will definitely come to you!"

"You made him an offer he couldn't refuse!"

David shrugged, smiled and rubbed his hands: "Sam, I've finished all my ideas, please help me come up with a plan~"

"Keep it in our company's internal archives, and when Gayden Milken achieves more success in underwriting the bond market, we will take it out and give him a surprise!"

"...ok~" Sam stood up, nodded to Leslie, and walked out of the office.

Leslie blinked, looked at David and joked: "You're not...wanting to give yourself a holiday again, are you?"

"Why not?"

"Could it be...that I, the boss, should be required to work like a workaholic for more than ten hours every day?"

"Stop it, man!"

"I don't like sitting in the office for long periods of time..."

“It’s so boring~”

Leslie laughed and clapped her hands: "Then... let's go have fun together? How about we skip going to Livlin's party tonight?"

"..not so good!"

"She is your girlfriend, you let her go... Aren't you afraid of death?"

"Forehead.."

Leslie was a little uncomfortable with David's question. .

he. .fear death!

"Forget it~the plan remains the same! We'll see you tonight!"

"Cut~!"

David raised a middle finger in disdain for his resignation. .

"Hahaha~"

----

Manhattan.

Stanley downstairs.

Director Martin Scorsese parked his car, carried his briefcase, and walked to the Stanley Gate.

Two days ago, after Martin met his second brother Lavis, he went back and contacted almost all his connections to attract investment and prepare to film the script of "Taxi Driver". .

But. .This process is not smooth ~

After listening to the story of the script he told, many people were keenly aware of the problems in it.

Lavis once wanted to assassinate a certain congressman, and was hyped by the media as a city hero in New York.

People in New York have long been familiar with this series of stories from the media.

There will be no market for this movie, let alone cost recovery and making money. .

If you don’t make money, why make a movie?

Is it a waste of time? . .

Martin Scorsese, holding the script of "Taxi Driver" in hand, encountered obstacles everywhere, and finally had no choice but to return to find Lavis. .

The last time the two met, Lavis mentioned that his boss might be interested in the film. .

After all, there is a glimmer of hope. .

It is also hope!

----

new York.

Kennedy International Airport.

A family's plane departed from the Middle East and arrived in New York. It slowly drove out on the runway and stopped.

After a while.

A group of Middle Eastern guests wearing traditional ethnic costumes stepped out of the plane.

Among these people, a young man with a slightly immature face followed in the footsteps of his elders and stepped off the plane, looking around with joy and curiosity in his eyes.

He is one of the grandsons of the current Saudi King, Difar bin Abdulaziz.

This time he followed his elders to New York, the United States, partly to satisfy his curiosity, and partly to see if New York, a world-class metropolis, could allow him to express his ambitions. .

Defar stood at the back of the crowd, watching the elders smiling and shaking hands with those who came to pick them up, silently remembering the faces of these people in his heart.

These people may be important contributors to his future development in New York~