The Son of Finance of the Great Age

  Chapter 561 Pledged Equity (Part 1)

   "Asian?" Daniel thought for a moment, then suddenly realized.

There has been such a classic case in management, that is, on the assembly line, European and American industrial workers are used to working in silence, while Asians are not interested in this set at all, making them work in a silent state is very inefficient, so The management has slightly changed the assembly line so that Asians can get together to chat and work, which greatly improves the efficiency.

  Although this is only a special case, it can be seen that Asians like to get together and chat. And Soros took this into consideration, so he set the source of the "news" in the Asian financial circle.

He also has his own considerations for choosing DBS Bank in Singapore. First of all, it is a rigorous and conservative bank, and its risk control is particularly commendable. After hearing the relevant information, the management will most likely say to Bear Stearns "No"; secondly, based on the character that Asians like to talk about, the relevant decisions within DBS Bank will definitely not be kept secret for too long, so this "news" will soon spread throughout the market. At that time, Soros will not only achieve his goal, but also be able to shirk responsibility completely.

"I believe you know everything you need to know, and you don't need to know what you don't know. Do your own work well!" Soros smiled and hung up the phone here, leaving only a thoughtful thought. Daniel, who was extremely nervous, held up the microphone in a daze, unable to speak a word.

"Okay, guys, the first step has been successfully completed, and it's time for us to need funds. Kenneth, John, are your cash ready?" The five giants were all waiting on the line, Soros asked Everything Daniel said was clearly heard by them. The dragon among these people naturally understood Soros's intentions very quickly, and couldn't help being a little more vigilant towards him.

In fact, the few people are just a loose alliance. When they have common interests, they may be able to get together, but when their interests disperse, they will go their own way, and once there is a conflict of interests, they may turn against each other at any time, just like the old days. Julian Robertson and Soros.

   There are no eternal friends, only eternal interests.

"The cash is ready. We have prepared 200 million US dollars in cash and securities worth 400 million US dollars. We can borrow another 200 million US dollars in cash from the bank at any time. Where are you?" Kenneth Ge Liffin replied flatly.

  According to the overall plan, Soros and others are responsible for the overall strategy, and most of the funds are borne by the Castle Fund and the Paulson Fund. Of course, as part of the cooperation, Soros and others also have to bear part of the funds, otherwise Paulson and others would not trust them at all.

"Okay, our funds are already in place, a total of 100 million U.S. dollars!" Seeing that the other party has prepared enough funds, Soros was naturally overjoyed. He briefly explained the situation of his own funds, and then explained Dao said, "The current situation is that we want to use this fund to borrow Bear Stearns' stocks to sell, but a few stocks can't shake its foundation, so we need to find those large institutional holders and individual holders to borrow stocks. , you can come forward through brokers or other people with no interest, and it’s best not to arouse the vigilance of Bear Stearns. Everyone, is there any problem?”

With regard to shorting stocks, generally speaking, it is enough to borrow stocks from the market maker's broker, but if the amount is particularly large and the market maker's broker cannot obtain so many stocks, these short sellers must borrow from the market maker's broker Major shareholders borrow. Some people may question why major shareholders are willing to lend their own stocks to suppress their own stock prices? Didn't he shrink his net worth out of thin air by doing this?

  Although lending stocks can shrink one's own wealth in the short term, the thinking of major shareholders is not like this. First of all, this part of the shares is difficult to realize. Wealth is only a literal number, and ups and downs are inevitable, so even if it is a temporary ups and downs, they will not take it too seriously. As long as the share of the shares they hold remains unchanged, they will What matters is long-term value. Secondly, when the major shareholders do not want to give up their shares but also want to have enough cash to use because of stock price fluctuations, instead of cashing out these stocks, they pledge them to the bank in exchange for liquid cash, and the bank can During this period, this part of the equity is lent out to collect part of the interest.

   This provides the possibility for short sellers.

"I know a piece of information!" Julian Robertson spoke at this time, "When Bear Stearns' stock reached its peak last year, they pledged 3.75% of the equity to **** in exchange for about 500 million US dollars The funds. I just don’t know if this part of the equity has been redeemed by them?”

Generally speaking, according to the rules of the banking industry, the price of the pledged stock is between 30% and 50% of its market value. At that time, Bear Stearns' stock price once soared to a high price of 170 US dollars per share, so according to the proportion, 500 million US dollars The cash is also within a reasonable range. It’s just that the **** who made this deal is miserable, because if they hold it until now, the value of this part of the equity is only less than 300 million US dollars. If Bear Stearns defaults, then they will be compensated. damn.

Although I was surprised why Julian Robertson knew about such a thing, the other people did not ask questions tactfully. They knew that the other party must have their own connections. Even if they asked, the other party would definitely not be willing to answer. no.

"If this is the case, then Julian, you can have a good communication with Jamie Dimon to see if you can lend this part of the equity, if they are still there!" Without a moment's hesitation, Soros said He said domineeringly, and Julian Robertson's answer was also very straightforward, and he agreed straightforwardly without a word of refutation or dissatisfaction. This surprised Griffin and Paulson, who entered their circle for the first time. .

Although everyone has adopted a tacit attitude towards the fact that the core of the circle is Soros, this does not mean that they are not happy to see someone stand up to challenge Soros' leadership, and Julian Robertson is undoubtedly the best Candidates. These were expected by Kenneth Griffin and John Paulson, but they were surprised that they did not actually happen.

   Thanks to book friends Lele Bookworm and Mouse Fei for voting monthly tickets!

  (end of this chapter)