Chapter 38 Making Big Moves

38 Making Big Moves

Cashing the check took longer than Michael anticipated, mainly due to the substantial amount involved. The bank needed to verify the transaction with Bridget and her associates, ensuring everything was legitimate. After about two hours of paperwork and phone calls, the process was completed. Michael, now significantly wealthier, immediately headed to a reputable suit store, understanding the importance of a professional appearance as Bridget had advised.

Upon entering the upscale boutique, he was greeted by a sharply dressed sales associate who quickly assessed him with a professional eye. "Good afternoon, sir. How can we assist you today?"

"I need a suit," Michael stated, feeling slightly out of his depth in the refined ambiance of the store.

"Certainly, sir. Any particular style or occasion?" the associate inquired, leading Michael deeper into the store, where rows of high-quality suits were displayed.

"It's for business," Michael replied, hoping that would suffice as an explanation.

The associate nodded, then began asking more detailed questions that Michael wasn't prepared for.

"Do you have a preference for fabric? Wool, cotton, linen? And what about the fit? Are you looking for something classic, modern, or slim fit?"

Michael hesitated, realizing his lack of knowledge about suits was more evident than he had thought. "I'm not sure. It's actually my first time buying a suit for myself."

Understanding Michael's situation, the associate smiled reassuringly. "No problem at all, sir. Let's start with the basics. For business, I recommend a versatile wool suit—it's appropriate for most occasions and seasons. As for the fit, given your build, a modern fit might suit you best. It's slightly tapered for a more contemporary look without being too snug."

The associate then guided Michael through the process of selecting a suit, explaining the importance of shoulder fit, the difference between single and double-breasted jackets, and the significance of lapel styles. Michael listened intently, absorbing the information but feeling increasingly out of place amidst the technical jargon and the myriad options.

After trying on a few suits and with the associate's patient guidance, Michael began to appreciate the nuances of a well-fitted suit. The final choice was a navy blue, modern-fit wool suit that complemented his frame and felt comfortable to move in.

"Hmm...okay," Franz said, glancing at the document.

"There are my prospectuses on eight cryptocurrencies I'm particularly concerned about. Each has been showing signs of potential volatility that could lead to significant downturns. I've detailed their market behaviors, trading volumes, and external factors that could influence their stability," Michael explained, pointing to the charts and data he had compiled.

Franz took the document, skimming through the pages. "This is quite a comprehensive analysis. You've certainly done your homework on these. However, structuring a Credit Default Swap for cryptocurrency is unprecedented for us. It will require a unique approach, especially in defining the 'credit event' for these swaps. Do you mind if I send some team over here?" "No problem," Michael said and Franz promptly called someone on his phone. Five minutes later, one man and a woman entered Franz's office.

"CDS on cryptocurrency huh? This is new." said the lady in his mid-forties. "So shorting the crypto market, this is the first time I encountered one," said the man, seemingly the same age as the woman. "Let's get down to business. How much do you want us to sell in credit default swaps?" Michael took a deep breath before revealing the amount. "One hundred million dollars." Upon hearing that, the three officials in the JPMorgan widened their eyes in shock.

"One hundred million dollars," Franz repeated. "You must be out of your mind." "No, I'm serious. I didn't go all the way here to play with you," Michael said, his tone serious. "You are aware that if you want us to sell 100 million dollars on CDS, you are going to pay a huge sum in monthly premiums?" the lady interjected. "And that monthly premiums increase when the price of the cryptocurrency you want to short rises."

"So like...pay-as-we-go structure?" Michael asked, seeking clarification on the payment arrangement for the premiums.

"Exactly," Franz explained, leaning forward to make sure the concept was clearly understood. "A pay-as-we-go structure means you'll be paying premiums on a monthly basis, depending on the current market value of the cryptocurrencies you're shorting. If the market value goes up, your premiums increase as the risk is perceived to be higher. Conversely, if the market stabilizes or drops, your premiums could decrease."

Michael nodded, absorbing the information. "I see. So, based on current market values, what would be my estimated monthly premiums for this 100 million dollar coverage?"

The man quickly did some calculations on his laptop. "Given the volatility and current upward trend in the cryptocurrency market, your initial monthly premium would be around 2 million dollars. This amount could vary significantly depending on market movements."

"Two million dollars a month huh?" Michael repeated. "Okay, we can do that."

Franz raised his eyebrows in acknowledgment of Michael's resolve. "It's a bold move, Mr. Reyes. We'll need to do some further analysis on our end and consult with our underwriting team to finalize the details. But if you're prepared to move forward with this, we can start drafting the necessary documentation."

"Let's proceed," Michael confirmed, his confidence unwavering. Franz nodded, signaling to his colleagues to begin the process. "We'll get everything in motion. Expect a follow-up meeting soon to go over the final terms and sign the agreements."

"No problem, thank you for your time," Michael said as he rose to his feet. One bank down.