Chapter 576： Luo An: I don’t have much investment available.

Chapter 576 Luo An: I don’t have much investment

New York, Wall Street, the tenth floor of a building.

Looking at the silent white man in front of him, Luo Jing sat down and waited, with the other person's information appearing in his mind.

ˆ Michael Bray, a value investor, fund manager, and the head of a company called "Transcendent Capital".

 Before 2008, although the opponent was famous, not many people knew him. It was not until the subprime mortgage crisis and financial crisis broke out that Michael Brey's reputation was known to many people.

 Because he has a record of being the first man to discover that the subprime mortgage crisis was bound to break out by studying the prospectus of subprime loan bonds, interest rate floating data, loan repayment status, etc., so he took action to short the federal real estate industry.

 The method he used was to create and purchase a CDS financial product from Goldman Sachs, Lehman Brothers, Deutsche Bank, Bear Stearns and many other investment banks.

  The specific content of CDS is complicated. To make a simple analogy, it is like someone buying an insurance policy for Lao Wang’s car next door.

 Although he is not the owner of the car, if the car is scrapped, he can take this policy and go to the insurance company to collect money.

 Someone is betting that Laowang's car will be scrapped, and the insurance company is betting that it will not be scrapped. This policy is a legal gamble.

This car is the federal real estate industry.

Luo An smiled and said:

Roan did not reject Michael Bray’s request, but he also did not agree immediately. Instead, he asked:

“Mr. Bray, are you sure the time is April 2007?”

 This is why Roan said before that Michael Brey needs help.

 Since creating and purchasing this CDS product in 2005, Michael Bray has been under considerable pressure.

Shorting the federal real estate industry does not involve simply buying a CDS financial product. After all, in addition to Class A CDS, there are many Class B, Class C, etc. on the market, and the contents are complicated and trivial.

 After pondering for a long time, Michael Bray looked up at Luo An and asked:

“There are many CDS products for sale in the market outside. Why don’t you go to them to buy them? Instead, come to me to invest?”

 The time now is April 2006, 16 months away from August 2007. With such a long time, it is impossible for Luo An to devote all his energy to this matter.

 “There are indeed some.”

Hearing Roan's words, Michael Bray laughed. Without hesitating for a few seconds, he nodded and agreed, and then said:

 But this matter will take a long time. I'm afraid I won't return your funds to you before April 2007. "

“Mr. Greenwood, do you have any doubts about the time?”

“Mr. Greenwood, there is something I don’t quite understand.”

But this reputation is not very good, everyone praises him as a great fool* behind his back.

 In order to succeed, Michael Bray even forcibly **** the investors' money and refused to withdraw their capital, which caused those investors, including Michael Bray's boss, to yell at him.

He took a total of 1.3 billion U.S. dollars from investors to short the federal real estate industry. However, the federal real estate industry was thriving and showed no signs of collapse. Michael Brey also needed to make monthly payments to investment banks such as Goldman Sachs in accordance with CDS regulations. A big expense.

 “Mr. Greenwood is really candid.”

“There are some things I need to declare in advance. I will ensure that all the funds you invest will be used to purchase CDS financial products that short the federal real estate industry.

Since creating CDS, a credit default swap product covering the federal real estate industry, and spending large sums of money to purchase it, Michael Bray's reputation has begun to ring through Wall Street.

 Michael Bray narrowed his eyes slightly:

 Because the federal real estate industry was booming, no one thought it would have problems.

 “You need help, I need an experienced person to help me grasp the investment.”

Roan nodded, he knew the reason why Michael Bray set the time in April 2007, because the Commonwealth Bank would raise interest rates for the first time around that time.

Michael Bray's bet is that as banks raise interest rates, federal people who take out loans to buy houses will start to run away without repaying their loans, eventually leading to the collapse of the federal real estate industry.

 Michael Bray laughed and said:

“Mr. Greenwood, if you have any doubts about time, I suggest you…”

Just when the other party was halfway through what he said, Luo An interrupted him:

 “I think the time is too short!”

"…It's too short?"

Hearing this word, Michael Bray was stunned for a moment, and then asked nervously:

“Mr. Greenwood, is there any news?” Thinking of Luo An’s FBI status, Michael Brey’s first thought was that he had heard some inside information.

 “No, I have no news.”

Luo An shook his head, then smiled and said:

“Mr. Bray, what you focus on is the data and the laws of the market.

  But what I focus on is the human heart and the means. "

 The Wall Street business war in the novel: strategy, means, overall view, brilliant prediction, virtual battle of the world's top minds.

 In reality, real business wars involve unplugging network cables, deleting codes, and shutting down servers.

 The most high-end business wars often only require the simplest tricks, such as poisoning, robbing...

Luo An knew that when the federal government raised interest rates for the first time and federal people started running away to pay off their debts, the first thing that the investment banks on Wall Street thought about was definitely not how to solve the debt problem, but how to deal with these junk debts. , transferred and sold to people who don’t know the truth.

Those investment banks will continue to whitewash the situation, and stocks in the federal real estate industry will not fall until one of the investment banks finally fails.

 This period of time will take at least a few months.

 So Luo An said:

“I think it would be better to push the time back a few months.”

 Due to some considerations, Luo An did not give a specific time, but just made a suggestion.

　　　…”

Hearing Luo An's words, Michael Bray was silent for a long time. He suddenly stood up and stretched out his hand to Luo An, shook his hand firmly, and said with a serious face:

 “Mr. Greenwood, I assure you that this time it will be successful.”

 Michael Bray is a very rational person and firmly believes that the data is not wrong and things will develop according to the results shown by the data.

But what Luo An just said reminded him that the data is indeed correct, but human beings have subjective initiative, and some things will always develop very strangely due to human thoughts.

Roan smiled and shook hands with Michael Bury, who then asked:

“I wonder, Mr. Greenwood, how much investment is prepared?”

ˆ Michael Bray has continued to create astonishing returns for investors since he founded "Heritage Capital":

In 2001, the rate of return of Chuanren Capital was 55.44%, and in 2003, the rate of return of Chuanren Capital was 50%.

 Michael Bray charges a lot of commissions, but he also respects his clients and always believes that sincerity is the most useful investment.

After listening to what Luo An just said, Michael Bray, who had woken up to many things, was very grateful to Luo An, because he could use this to avoid many detours.

 Michael Bray has already made a plan in his heart. Even if Luo An’s investment is only a few hundred thousand dollars, he will get the maximum return for Luo An.

 “The investment I can make is not that much.”

 Luo An smiled and took out a piece of paper with the account number written on it from his pocket.

 Michael Bray's expression remained unchanged. He had already been mentally prepared for the fact that Roan did not have much money, so he sat down on the chair, started to start the computer preparation, and asked:

 “Can you tell me the specific amount?”

Luo An put the note on his desk and said with a smile:

 “Not much, just 450 million.”

  “??!”

Hearing the numbers spoken by Luo An, Michael Bray was stunned while typing on the keyboard, and then turned his head in disbelief:

"I'm sorry, Mr. Greenwood, I seem to have heard you wrong. Did you just say...?"

 “You heard it right, it’s 450 million.”

Luo An raised his lips slightly. He actually had a total of 550 million US dollars. Just in case, he finally chose to leave 100 million untouched.

 After receiving the affirmative answer, Michael Bree's eyes widened with surprise, his throat rolled, but he didn't know what to say.

 Suppressing the shock in his heart, Michael Bray said in a deep voice:

"Mr. Greenwood, with a principal of US$450 million, I can help you purchase up to US$3 billion of BBB-level CDS products."

 (End of this chapter)