I looked at my father Jackie Chan in 1988

Junk bonds aren't actually junk.

Its essence is no different from ordinary bonds, the difference is that the companies that issue junk bonds have relatively low credit ratings, and investors have greater investment risks.

In order to attract investment, these companies will use high interest rates as bait.

Simply put, it is high risk and high interest rate.

Therefore, junk bonds have another name: "high-risk bonds".

Milken was not the inventor of junk bonds, but he played junk bonds to the highest level because he created new rules of the game.

In [-], the inflation rate and unemployment rate in the beautiful country rose, and the credit crunched severely.

For a while, the high-return bonds in the investment portfolios of many fund companies were downgraded by bond rating companies and became "junk bonds". In the eyes of investors, they became garbage that could not bring any return.

Many fund companies are eager to sell the low-grade bonds in their hands, so as not to affect the quality image of the fund.

Milken, who was only 25 years old, completely overturned all this.

Because he keenly discovered that after World War II, the beautiful country gradually improved many regulatory measures, aiming to protect investors from losses due to corporate bankruptcy or defaulting on debts. Large companies are not allowed to go bankrupt, and its stocks are not will stop trading.

Therefore, the lower the credit rating of the bond, the higher the investor's return after default.

In his view, risk and income are equal, and the greater the risk, the greater the benefit.

As long as the company's prospects are good enough, these bonds can be bought out.

Facts have proved that Milken is correct, and the annual yield of the "junk bond" recommended by him has reached 50.00%.

In just six years, the company has created a market size of 400 billion U.S. dollars and has become the monopoly of "junk bonds" across the country.

By the end of the 70s, under the leadership of Milken, those investors who had looked down on junk bonds had become crazy buyers.

Junk bonds are very sought-after, but the quantity is limited, which can no longer satisfy the desire of fund companies to buy.

Milken took the initiative to issue junk bonds for small companies, allowing them to acquire large companies, because large companies usually have a good reputation, and small companies can use the assets and future cash flow of large companies as a guarantee for repaying debts, and finally use light prying as a guarantee for repaying debts. Lever, staged a "snake swallowing an elephant".

In the decade from 930 to [-], Milken raised $[-] billion.

Of course, this is directly issued by him for others, not underwriting, in fact there are more underwriting.

His firm's share of the "junk bond" market grew to $2000 billion.

At this time, Milken has become the real "junk bond king", and the corporate bond trading department has become the low-grade bond market in the United States in a complete sense.

Although Milken was not the mastermind of the hostile takeover, he was an important driver of these activities.

It was he who supported the growth of small companies by issuing junk bonds, and indirectly promoted the merger boom in the 80s in the beautiful country by using the "leveraged buyout" model.

Drexel Securities is an investment bank.

In the reception room, Ji Cheng sat on the sofa and looked at the financial godfather in front of him who is currently in charge of the financial world of the beautiful country, with a pivotal position and an unparalleled status.

Michael Milken!

This man was in his forties, with a sinister face, he was not a good person at first glance.

If it is said that it is still impossible to know how "bad" Michael Milken is, then I believe that those who have watched the movie "Wall Street" released in [-] will definitely remember the big villain Gordon Gekko. New, and the prototype of Gordon Gekko is none other than this person sitting in front of him.

In fact, what Milken has done in the financial world of the beautiful country is more powerful than in the movie.

One can imagine how "bad" it is.

After looking at it for a while, Ji Cheng said calmly, "I need money."

Sitting next to her is Ms. Mikan Bond Rowling, who is drinking coffee with her head down. She and Peter Peterson and others have been in frequent contact since they met Ji Cheng. The relationship is relatively good, especially in Ji Cheng's tens of billions After the success of shorting the dollar against the Japanese yen and the West Deutsche Mark, the small circle was almost headed by Ji Cheng. Today she was entrusted by Ji Cheng to accompany her to persuade Milken to issue junk bonds for Ji Cheng.

Michael Milken hardly hesitated, "How much money do you need?"

Ji Cheng picked up the cigar that Milken's beauty assistant lit for himself and took a puff. Without inhaling it, he exhaled, "41 billion dollars."

If he asked for so much money, any head of a financial institution would be a little surprised if he heard it.

But Milken looked very calm and straightened his tie knot, and then said: "41 billion dollars is fine, but I want to know what you want this money for."

Ji Cheng looked up at the assistant who was serving him tea and water, and then at Rowling beside him, "I want to buy Columbia Pictures, but I don't have any money."

He didn't even mention this matter to Ms. Rowling before, only that he needed money and asked Milken to find a solution.

As expected, Ms. Rowling looked up at Ji Cheng with bright eyes in surprise.

On the contrary, Milken's beautiful assistant seemed to be unresponsive.

Milken's reaction was different. He seemed to be interested, and the movement of holding the cigar was three points slower. "Oh? Tell me about the acquisition plan in detail."

Ji Cheng said with a smile: "There is no acquisition plan. I have negotiated with Columbia Pictures and the largest shareholder Coca-Cola. The acquisition price is 25 US dollars per share, which is about 16 billion US dollars. I will inherit 41 billion debts, a total of [-] billion US dollars. .”

Milken froze for a moment, "Have you negotiated with Columbia Pictures and Coca-Cola?"

Ji Cheng hummed, "Now it's time to confirm the funds and make an official offer."

Milken showed a strange expression, "Since you have already negotiated, and the other party is willing to sell the company to you, it is reasonable to say that there is no problem in finding any investment bank for a loan, why do you want to get money from me?"

Ji Cheng looked over calmly, and put down the cigar in his hand, "Because I don't want to startle the snake before I formally send out the offer."

Before issuing the offer, Ji Cheng needs to purchase a sufficient proportion of common shares. When he has a certain proportion of shares in hand, he can acquire shares from the shareholders of Columbia Film Company, and then he can compulsorily acquire all the shares on the market. , complete the tender offer process in one step.

If you just buy a certain percentage of the tradable shares first, but if the funds are not in place, you will make an offer first and then buy the rest, which will inevitably involve other capital and cost more money at that time.

Because of a tender offer, it doesn’t mean that if you make an offer, others can’t do it. Generally speaking, if one investor makes a tender offer and another investor makes a more competitive tender offer, a competing offer will be formed. In order to achieve the purpose of the acquisition, the two sides are bound to form a financial war.

Milken understood as soon as he heard it, "I am very interested in your acquisition plan, and I am willing to help you raise money, but one thing needs to be explained in advance. The underwriting fee for me to help you underwrite high-risk bonds is not cheap. It takes 41% Point 41. In addition, the interest rate of high-risk bonds is too low and no one is willing to buy them. Generally, the interest rate must be above [-]%, and the term is between three and six years. The most important point is not that you need [-] billion US dollars I will underwrite [-] billion US dollars of high-interest and high-risk bonds for you, but you need to calculate the interest in the next few years, and include this money."

The annual interest rate is 41%, even if the bonds with a maturity of three years cost 5000 billion US dollars, it will cost almost 5000 million yuan. In addition, the commission of [-]% is about [-] million yuan, which adds up to [-] million yuan. Ten thousand.

And the 5000 million will require interest. Ji Cheng estimates that if he raises 41 billion US dollars, he will eventually have to issue 53 billion US dollars. The extra money will be used to pay interest and commissions required by Milken every year. Just return the principal.

If ordinary people hear that they have to pay an extra 12 billion, they will definitely shrink back immediately.

But Ji Cheng said without hesitation: "No problem, I will leave it to you to handle the details, and I just need to get the money."

Why did he agree so readily?

Because he didn't even want to pay for the money himself!

Isn't Sony determined to buy Columbia Pictures?And according to memory, Sony did spend $60 billion to settle the deal.

That's still the value of underperforming Columbia Pictures.

Ji Cheng thought that if he had made Columbia Pictures' performance boom, it wouldn't be a big problem for Sony to pay an extra billion dollars, so he agreed so straightforwardly.

If it were an ordinary film company, he wouldn’t dare to play like this. After all, ordinary film companies only have the ability to produce or distribute films and do not have their own theaters. However, Columbia Pictures owns 820 movie theaters and is not afraid of theaters at all. hold back.

It can produce, distribute, and has a huge number of movie theaters.

In addition, Ji Cheng can plagiarize countless high-grossing classic movies from modern society.

If, with such a huge advantage, there is no way to make Columbia Pictures prosperous, then it can only be said that he is really incompetent, and he deserves to be dragged down by funds.

Milken laughed, obviously very happy to have made such a big deal, "Okay, when do you need money?"

Ji Cheng said, "I want it now."

Milken hummed, nodded slightly, and said, "The preparation period for issuing bonds will take about two and a half months. Be on the safe side, three months. In other words, I will first get you a bridge loan of 41 billion dollars from other banks. After the bonds are issued, the money can be returned.”

Ji Cheng was stunned for a moment, "Is there no need for a sales cycle after the release?"

"Hehe." Ms. Rowling sitting next to her laughed.

Milken also smiled without saying a word.

Ji Cheng came to ask a question.

Ms. Rowling explained: "You may not know how influential Michael is in the high-interest and high-risk bond industry. The bonds he underwrites have a reputation for high yield and low risk. All products are basically sold out on the date of issuance." She The low risk mentioned does not refer to the rating of the bond itself, but refers to the trust of everyone.

Ji Cheng knew that Milken was powerful, but he didn't expect to be so powerful. He sincerely admired: "Milken, you have too much influence in the high-risk, high-interest bond industry."

Milken smiled, showing neither humility nor arrogance, "It's okay." After a pause, he continued: "Are you going to issue corporate bonds with Huajin Capital, or re-establish a company fully controlled by Huajin Capital?" Subsidiaries issue corporate bonds?"

Ji Cheng was stunned for a moment, "Is there any difference?"

Milken said meaningfully: "If you don't pay the money in the future, setting up a subsidiary to issue corporate bonds will not affect Huajin Capital."

This time Ji Cheng understood!

That is to say, if he still doesn't pay the money in the future, the subsidiary will go bankrupt at worst. How Huajin Capital has played before will still be the same. The only way for capital to accept bankruptcy liquidation is to go.

Of course, if the subsidiary goes bankrupt, the ordinary people who buy the bonds will not be implicated.

Because according to the current laws of the beautiful country, companies of this level are not allowed to go bankrupt. Even if you file for bankruptcy, the government of the beautiful country will help you find another home for asset restructuring. There is really no government that will come forward to take over the offer, that is, to buy bonds Ordinary people will eventually get their money, it's just a matter of time.

You guys are too bad!

Focusing on the government of a beautiful country to pluck wool, no wonder he was sued and even banned from engaging in any work in securities.

Ji Chengdao: "Okay, then I will have someone register a wholly-owned subsidiary immediately after I go back, and when will the bonds be issued?"

"It will be released after the acquisition of Columbia Pictures." Milken said and stood up. "Now you and I will go to the investment bank to raise funds."

Ji Cheng didn't expect Milken to be so resolute, so he stood up immediately and reminded, "I'm fighting a very powerful opponent recently, and his strength is enough to influence many financial institutions in the beautiful country. Let's go to other investment banks. Won’t leaking the wind affect my tender offer?”

"It might be possible if other people come forward, but..." Milken, who had just walked to the door, turned his head and looked at Ji Cheng confidently: "I will come forward, even if your competitors are the Morgan family and the Rockefeller family. They might get a little bit of information! Those banks dare not! Otherwise...they won’t be able to earn huge commissions from me in the future. Tell me who your opponent is now, and I can avoid all investments directly related to him The bank, promise not to leak the secret."

Ms Rowling was also interested.

Ji Cheng's only hope now is for Milken to help him, and he said without any concealment: "It's the Rockefeller family!"

Ms. Rowling was shocked!

Milken laughed lightly, "Okay, just avoid them!"

Ji Cheng hurriedly asked, "Then which investment bank should we find?"

Milken seemed to have already made up his mind, and said, "Lehman Brothers!"

Ji Cheng wondered, "Why didn't you find Morgan Bank? Aren't they stronger?"

"It's a pity that they are not Jewish, and they have united against the Jewish consortium. Morgan and Rockefeller are on the same line." Milken chuckled, "The Morgan family and the Rockefeller family were supported by the Rothschild family before, but it's a pity Yes, neither of these two families has Jewish ancestry, so after getting rid of the control of the Rothschild family by chance, the two families joined forces to fight against the Rothschild family, even though they are apparently competing in the beautiful country For example, behind the two ruling parties are their respective families, but their relationship is not only competition, but also mutual support. If we go to Morgan Bank, your business secrets will definitely be passed on to the Rockefeller family, Ray The founder of Man Brothers is as Jewish as I am, so I can trust you.”

Although Ji Cheng doesn't like Jews, but if it's true what Milken said, he really can't trust those consortiums other than Jews in the beautiful country, because the West hates Jews, especially the Morgan family and Rockefeller were once ruled by the Rothschilds. The family is in control, and now they will join forces to resist the Jewish consortium.

For example, Milken said that Lehman Brothers went bankrupt in [-] because of the subprime mortgage crisis, but behind it was the shadow of the joint suppression of the Morgan family and the Rockefeller family.

This can be seen from the lawsuit against JPMorgan Chase Bank after the bankruptcy of Lehman Brothers. JPMorgan Chase Bank is the main clearing bank of Lehman Brothers and plays an intermediary role between Lehman Brothers and its counterparty.

As an intermediary, JPMorgan Chase was obliged to require Lehman Brothers to provide collateral, that is, securities that were easily sold, to provide protection for clients' Lehman Brothers loan positions.

Lehman claimed in the complaint that JPMorgan Chase took advantage of its status as an entrusted clearing house to force Lehman Brothers to provide excessive amounts of liquidation by threatening not to provide vital clearing services after learning that its operating capacity was rapidly declining. collateral, leading to its liquidity strain and eventual bankruptcy.

Morgan and Chase held Lehman Brothers in the head with their "financial pistols", so they were able to force Lehman Brothers to sign the "overlord clause" in a short period of time, and the legal owners of the billions of dollars in collateral belonged to Lehman Brothers and its creditors.

In fact, this is the real reason for the collapse of Lehman Brothers in [-].

In addition, Milken will be convicted and imprisoned next year, and will not be allowed to engage in securities anymore. Among them, the Morgan family and the Rockefeller family are also leading, because Milken is Jewish, and he is not liked by these two families. In addition, Milken made money for countless small and medium-sized enterprises and staged a snake swallowing elephant to acquire large enterprises, which damaged the core interests of these two behemoth families.

Therefore, now that Ji Cheng wants to do things on his own and borrow money so that the Rockefeller family does not know about it, he can only get money from the Jews.

Ji Cheng really didn't know these things before, because these things can't be found by searching the Internet.

He never expected that he would accidentally get this kind of inside information when he asked Milken to make money, excluding information that might be a partner of the Rockefeller family!

Ji Cheng took a deep breath and secretly wrote down all the information.

At the same time, his heart became hot again. As long as he followed Milken to Lehman Brothers later, his financial problems would be solved!

He originally thought that he would have to persuade Milken to get the money, but he didn't expect it to be so simple in the end.

But Ji Cheng knew the reason, that is, there were two main reasons why Milken agreed so neatly.

First, you can earn large commissions.

Second, to a certain extent, Ji Cheng has already acquired Columbia Pictures, but the funds are not in place.

With the existence of Columbia Film Company, Milken underwrote the junk bond for Ji Cheng, which will surely arouse the interest of clients, and when it goes public, it will be another brilliant record!