Rebirth: The Financial Giant

Chapter 227: [Lu Ming's suggestion, Goldman Sachs called the expert directly (53/9…

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Several foreigners present couldn't help but be curious when they heard it. John Brain said, "What solution does Mr. Lu have to solve the long-term uncertainty risk?"

Hearing the words, Lu Ming said in an orderly manner: "It's very simple, you only need to develop such a financial derivative tool, that is, package the money you invested in me into a subordinate securities product, and you can give an estimate by yourself. I don’t care how much you give, it’s your business, then trade in the securities market, and the potential risks will be passed on to the capital market.”

John Bryan and the others were stunned when they heard it, and they called him a good guy. It smelled like a subprime mortgage back then. How could this method sound so familiar, but it was not the same as the subprime mortgage back then.

This method, to put it simply, is, for example, Goldman Sachs put out 10 billion US dollars of funds to Tiansheng Capital to take care of, and the lock-up period is 15 years according to the agreement.

For such a long period of time, there are great uncertainties and unpredictable potential risks, so is there a way to not only earn money, but also to resolve this risk?

The answer is yes, re-securitize the investment.

So Goldman Sachs packaged up this investment for a valuation, and then securitized it into N shares to invest in the capital market. Everyone came to speculate. Originally, the high entry threshold of Tiansheng Capital LP prevented most people from entering, even if it was a few thousand people. People worth hundreds of millions are not eligible to come in.

After Goldman Sachs’s rude operation, not only people with tens of millions of worth can buy it, but even ordinary people have the opportunity to indirectly become Tiansheng’s LPs. Of course, you can also buy it. Those with more money buy more shares, and those with less money buy fewer shares, and they can trade at any time.

It's like buying stocks.

In this way, it is equivalent to gathering the fragmented funds and loose money of ordinary people, which means that the big guy crowdfunded 10 billion US dollars, and then used the 10 billion US dollars as an agent of Goldman Sachs Capital to find Tiansheng Capital, Hand over the money to Lu Ming for management, and then they bet together in another basket how much the $10 billion will rise in the future.

For Tiansheng Capital, it is their business how they stir up the hype. Tiansheng Capital received the 10 billion US dollars and locked it for 15 years. After the expiry and the liquidation, the capital and profit will be paid to Goldman Sachs. As for who and which institutions the money was finally distributed to, it has nothing to do with Tiansheng Capital.

At this moment, after hearing Lu Ming's suggestion, John Brain and the others were stunned for a moment, and when they reacted, all of them were surprisingly unanimous with golden eyes.

"Mr. Lu, I have to say that your idea is both bold and unstoppable!" Brian couldn't help but exclaim in amazement.

A few foreigners have already called out a genius-like idea in their hearts. They were originally good players in financial derivatives. After Lu Ming said this, they realized within minutes that packaged securitization could bring huge profits.

Once securitized, it means that the future can be overdrafted in advance, because packaged securitization itself contains leverage.

Why is it said to be able to overdraft the future ahead of time?

This is easy to understand. After the securitization flows into the capital market, let’s see how much the 10 billion US dollars can make in 15 years. Investor A thinks that it can earn 20 billion US dollars. The market now values ​​it at only 10 billion US dollars. Investor A feels that there will be a double increase in the future, so he spends $100,000 and quickly buys its securities holdings.

Unexpectedly, in the last two years, I made 30 billion US dollars, and the price of the securities shares in my hands skyrocketed. The securities bought for 100,000 US dollars in the past have now risen to 400,000, which has tripled.

At this time, Investor A was not greedy, so he threw out the securities in his hand. It happened that Investor B thought that it would rise to 50 billion US dollars in the future, and was willing to take this offer, so he used 400,000 US dollars to buy the hands of Investor A. securities and hold...

Isn't this exactly the same as stock trading, and it's not different from stock trading, so it's called re-securitization.

For Goldman Sachs, the 10 billion US dollars was handed over to Lu Ming, and it did not bring investment income, but Goldman Sachs packaged it into securitization, as long as the market raised the asset price, such as 5 times or 10 times. , Goldman Sachs can completely sell it in advance to make money and leave.

As for whether Lu Ming can bring 5 times or 10 times the profits to the 10 billion US dollars in the end, only the investors who bought the securities are concerned. Goldman Sachs has already held the profits in his hands anyway, and transferred the risk to other investors in the capital market. Well, even if there was a thunderstorm, Lu Ming not only didn't make any money, but lost 5 billion US dollars, and the market has already reached a market value of 100 billion US dollars.

At this moment, John Bryan and others were very excited, because they realized that the idea Lu Ming gave them was a good thing. There is a huge operating space for this investment. In the future, Lu Ming will make money, and he will not lose a single point.

But as long as someone in the market agrees to buy the derivative securities and hype up the valuation several times, then Goldman Sachs can sell it in advance and let others take over, and the risk is passed on, and Goldman Sachs not only withdraws funds and profits.

If Goldman Sachs were more ruthless and courageous, they would entrust the returned funds, such as US$15 billion, to Tiansheng Capital Management as an LP, and then securitize them into the capital market... Crazy nesting dolls.

The leverage multiples are superimposed, and the rhythm is not high enough?

As for how many times the leverage is superimposed, only ghosts know, because only they know whether other buyers' funds are also superimposed with leverage.

But whatever, it's someone else's order anyway, and it's more important than anything else that Goldman Sachs made money and ran away.

"Mr. Lu, Goldman Sachs originally planned to entrust the management of your institution with 1.5 billion US dollars, but I think it is too little. Please give me a little time, and I will call the headquarters to discuss it." John Brain said.

1.5 billion US dollars is absolutely unbelievable, it must be doubled, it must be super doubled, otherwise it will be sorry for this wave of slapstick operations.

"It's okay, please feel free!"

Lu Ming nodded with a smile and said that there is no problem. The more money, the better. The idea he proposed was that LPs want to securitize themselves, which is equivalent to opening a new gambling table and pulling a group of new gamblers to bet together. How much money can Tiansheng Capital make in the future?

Tiansheng is completely unaffected.

Not only John Bryan of Goldman Sachs called the headquarters, but the Carlyle Investment Group and Morgan Stanley also said that they borrowed the bathroom to call and talk to the headquarters.

In about twenty minutes, the temporary contact between John Braine and others with their headquarters ended, and they also obtained the latest arrangements.

"Mr. Lu, Goldman Sachs has decided to entrust your institution with 4.5 billion US dollars of funds for management," said John Braine.

"No problem at all." Lu Ming said with a smile, and immediately looked at the other two institutions.

"Carlyle also paid $4.5 billion!"

"Like Morgan Stanley, $4.5 billion!"

The heads of the two major institutions have also stated that the three institutions add up to 13.5 billion US dollars, or about 92.6 billion yuan excluding exchange rate changes.

"Then... sign an agreement?" Lu Ming was also not procrastinating.

John Bryan and others expressed that they can't wait. After signing the contract, they are busy going back to design this derivative securities.

After the contract was signed, the speed was lightning fast. The two parties shook hands happily. The funds will be remitted to the account of Tiansheng QDIE Fund in the next half month~www.wuxiamtl.com~ As for Lu Ming, who wants to take this money He has the final say on whether to bring the money back to China to invest in Big A or to invest in other capital markets.

However, investing in the domestic stock market, due to the nature of foreign capital, requires a limit on the scale of funds entering the stock market, and entering a large A is also in the form of funds going north.

Lu Ming does not intend to enter the domestic capital market, but to make excess returns in the global market.

Because only by making excess returns, can Goldman Sachs Group be willing to take over the packaged and securitized financial derivatives, so that they can quickly withdraw funds, and maybe make another sum of money to Tiansheng Capital, and the amount is larger.

Of course, Tiansheng Capital can also get more entrusted funds. Anyway, how Goldman Sachs plays, it also transfers the risk to investors in the North American capital market. They can go as crazy as they like.

After a few foreigners left with the contracts satisfied, Su Xiaoman, who was also almost invisible, finally spoke up. She looked at the contract in her hand and said in a daze: "Can finance still play like this? Today is considered an increase in knowledge. ."

...

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