Rebirth of the Financial Overlord

(Thanks to the boss of Jingsheng Jingshi 89 for rewarding 10,000 coins!)

Credit default swap, credit default swap, referred to as CDS.

It is the most common credit derivative product in the bond market of the financial market.

Kind of like a combination of insurance and options, but not quite.

In the late 1970s, affected by the oil crisis, the financial industry became a complete garbage. Wall Street elites came to sell insurance products every day, and they were directly blasted out by customers with brooms or even guns.

The securities market and the bond market are equally difficult. Holding a marketable security, the return of 10,000 U.S. dollars to maturity in 15 years is only 100 U.S. dollars.

People have nothing to do, they are on the phone every day, and there are poor people everywhere.

At this time, a man came to Wall Street and joined Salomon Brothers.

he is lewis lenery

In 1981, the U.S. Congress passed a bill, and the asset securitization (securitization), especially real estate asset securities (mortgage-backed securities), which appeared in the 1970s, has been greatly stimulated and developed. The scale of the market expanded rapidly, surpassing the US stock market and becoming the largest securities market in the world.

At that time, most Wall Street companies were not fully prepared for this sudden change, but Salomon established a complete and standardized asset securitization department as early as 1978 with its sensitive sense of the market.

While other Wall Street companies are still hesitating and lingering, Salomon has earned hundreds of millions of dollars in revenue and has become a leader in the real estate securities market. Lewis Lenery, managing director of real estate securitization, a bond trader who began his career as a mail trader, became a legend at Salomon.

reason?

The reason was a new idea from Lewis Lenery.

CDS.

People who buy a house will carry a housing loan with a fixed interest rate and pay it off in 30 years. However, if the house price goes down and the house loan is broken, the banking industry will suffer a large amount of bad debts.

If the housing securities are capitalized and a risk hedging tool is made, the risk of investing in real estate will be greatly reduced.

A perfect systemic bond.

People who invest in real estate buy CDS to avoid losses caused by the downturn of the real estate, because according to the CDS rules, when the price is lower than a certain range, the party who sells the CDS needs to pay liquidated damages to the customer.

Banks can also purchase CDS, which can avoid bad debts caused by banks due to mortgages.

The government can also benefit from this, so that the CDS, the financial system develops stably and everything is under control?

Then?

Then Salomon Brothers became the king of Wall Street.

In 1987, Salomon's capital reached 3.4 billion US dollars, with 6,000 employees and branches in major financial centers around the world. Become the giant of Wall Street in the mid-1980s, the empire of the financial world.

Then there is no more.

In 1989, Salomon Brothers sold a short option on Tokyo Securities to major Japanese insurance companies through multiple channels and the credit of the King of Denmark.

Afterwards, he overbought short-term options and faced huge losses and was acquired by the Travelers Consortium.

Of course, what really made CDS shine was the well-known subprime mortgage crisis, which appeared in China, and quietly appeared in major banking institutions in the next two decades.

Nine in the morning.

Happy Valley, Royal Villa Garden.

Shen Jiannan stood in front of the mirror, stretched out his hands, and let Aso Zhiyue and Shinkawa Masako play tricks on him.

Panties are pulled on, pants are pulled on, shirts are pulled on, socks are pulled on. After putting on the suit, a young man with extraordinary temperament appeared in the mirror.

Of course, Shen Jiannan was not idle either.

While Orizuki Aso was putting on his tie, he was still busy with work on the phone.

Charlie Cao's work efficiency is very high. In a few days, the contract requested by Shen Jiannan has been completely settled.

However, Shen Jiannan was still worried.

None of the major banks are vegetarians, all of them eat meat.

Charlie. This contract is very important to us, are you sure there are no loopholes?

Boss. The sixteen of us have cross-checked it 30 times and revised it more than a dozen times. We are sure there is no problem.

Wai Ruigou. What about the confidentiality agreement?

If HSBC violates the confidentiality agreement, it must pay us US$5 billion in compensation. The responsibility rests with the individual.

That's good. Wait for me at the gate of the bank later.

.

After hanging up the phone, Shen Jiannan looked at himself in the mirror and gritted his teeth.

With the greedy habits of bankers, if they give HSBC such a large and luxurious gift package, they will definitely go crazy with joy.

Owner.

Aso Zhiyue shouted, putting the watch on Shen Jiannan's wrist.

The cool emerald stays on the pulse, which immediately makes people feel refreshed.

Shen Jiannan stood still.

Aso Zhiyue understood, and tapped on Shen Jiannan's lips.

Um?

Shinkawa Masako was also very knowledgeable and came over to offer a kiss.

flutter--

A rag doll flew over and landed on Shen Jiannan with precision. Seeing this shameless scene early in the morning, Lu Xinyue expressed her dissatisfaction in her heart.

Shen Jiannan caressed Bai Fang, walked to the door, and grabbed Lu Xinyue's head without any explanation.

moment.

When the two separated, Lu Xinyue rolled her eyes fiercely.

Since returning to Hong Kong, this guy has become more and more unscrupulous.

Men, really can't be used to it.

Shen Jiannan accepted it as soon as he saw it, pretending to be stupid and asking.

What about An Ran?

Da da da--

Say An Ran, and An Ran will arrive.

Shen Jiannan subconsciously turned around to take a look, and was immediately amazed.

Kardashian changed into a standard professional suit, wearing a white shirt, a black suit, and a short skirt that barely reached her knees, outlining a thrilling and beautiful scenery.

I don't know if the clothes are not suitable. The clothes with good fabrics are too stretched to be completely closed, and the buttons seem to be in danger of collapsing at any time.

boss.

In order to show that he had no ghosts in his heart, Shen Jiannan quickly looked away, and made a lady-first gesture towards Lu Xinyue.

Lu Xinyue rolled her big eyes, stepped on her high heels and walked away.

Kardashian kept a distance of half a meter and followed closely, and the undulating waves made people unable to move their eyes away.

Shen Jiannan looked at the backs of the two and was deeply intoxicated.

Suddenly, Kardashian from behind turned her head, and her blue eyes cast a wink in an instant.

As if electrified, Shen Jiannan bumped into a corner of the sofa and almost fell and gnawed on the mud.

Kardashian couldn't help laughing, and ignored the embarrassment of the big boss, twisted her waist and threw the embarrassing guy far away.

Tolerate.

I will endure.

Looking at the ups and downs of the two people's backs, Shen Jiannan didn't dare to accept the move at all.

Kardashian is a swallow specially trained by the KGB. If she dares to mess around, she might die miserably and heroically.

No, you have to ask Peng Er how the crow trains.

Little girl, wait for me.

In the grassy courtyard, Tang Dunhou had been waiting for a long time in his long-range Lincoln. When the three of them got into the car, he stepped on the accelerator, and the car quietly drove out.

Central.

HSBC Bank Building.

Cohen Meriwether led a young Chinese woman and stood at the door with folded hands. The two occasionally greeted customers who walked into the bank with a smile on their faces, which was considered polite.

Those who knew Cohen Meriwether were very curious.

Obviously, he is waiting for someone here.

But as the CEO of HSBC Hong Kong, there are only a few people who can ask Meriwether to wait for him at the door if he visits Meriwether to borrow money.

Could it be that the Queen of England is coming?

Today was a dog day, the manuscript was not passed on, I thought it was passed on, but I still used cutting, after four hours of hard work, it was all wasted.

The baby is really miserable.