Credit default swap, credit defaultswap, abbreviated as CDS.

It is one of the most common credit derivatives in the financial market and bond market.

Similar to a complex of insurance and options, but not exactly.

At the end of the 70s, affected by the oil crisis, the financial industry became complete garbage, and the Wall Street elite would come to their door every day to sell insurance products, and customers would be directly shot out with brooms or even guns.

The securities market is also not having a good time with the bond market, and the income of $10,000 at maturity of 15 years is only $100 for holding a security.

People have nothing to do, they take telemarketing every day, and there are poor people everywhere.

At this time, a man came to Wall Street and joined Salomon Brothers.

He was Lewis Leneri

In 1981, the U.S. Congress passed a bill, and the asset securitization, especially the real estate asset securities, which appeared in the 1970s, was given great room for birth and development, and the upsurge of asset securitization appeared in the United States, and the scale of the real estate securities market expanded rapidly, surpassing the U.S. stock market and becoming the world's largest securities market.

At that time, most Wall Street companies were not fully prepared for this sudden change, but Salomon & Co., with its sensitive sense of the market, established a complete and standardized asset securitization department as early as 1978.

While other Wall Street firms were still hesitating and lingering, Salomon & Co. had already earned hundreds of millions of dollars and became a leader in the real estate securities market. Lewis Lenery, the general manager of the real estate securitization division, a bond trader who began his career as sending and receiving emails, became a legend at Salomon & Co.

Cause?

The reason was a new idea from Lewis Leneri.

CDS。

People who buy a house will carry a mortgage with a fixed interest rate and pay it off in 30 years, but if the price of the house goes down and the mortgage is broken, the banking industry will suffer a lot of bad debts.

If you capitalize on housing securities and make a risk hedging tool, you will greatly reduce the risk when investing in real estate.

It's a perfect systemic bond.

Investors who buy CDS can avoid the loss caused by the downturn of the property, because according to the CDS rules, when the price is below a certain range value, the party that sells the CDS needs to pay liquidated damages to the customer.

Banks can also buy CDS, which can avoid bad debts caused by mortgages.

The government can also benefit from this, so that the CDS, the financial system develops steadily, everything is under control?

And then?

Then Salomon Brothers became the king of Wall Street.

In 1987, Salomon had a capital of $3.4 billion, 6,000 employees and branches in major financial centers around the world. Become a giant of Wall Street in the mid-eighties of the twentieth century, the empire of the financial world.

And then there was no then.

In 1989, Salomon Brothers vacated a Tokyo Stock Exchange short option, which was sold to major insurance companies in Japan after multi-channel turnover and the reputation of the King of Denmark.

Later, he overbought short options and was acquired by a consortium of travelers in the face of huge losses.

Of course, what really made CDS shine was the well-known subprime mortgage crisis, which appeared in China and quietly appeared in major banking institutions in the next two decades.

Nine o'clock in the morning.

Happy Valley, Royal Villa Park.

Shen Jiannan stood in front of the mirror, stretched out his hand, and let Aso Oritsuki and Masako Shinkawa tinker with him.

The panties were put on, the pants were put on, the shirt was put on, and the socks were put on. When the suit is put on, a young man with an extraordinary temperament appears in the mirror.

Of course, Shen Jiannan was not idle.

When Aso Orizuki helped tie it, he was still busy working on the phone.

Charlie Cao's work efficiency is very high, and in a few days, he has completely completed the contract requested by Shen Jiannan.

However, Shen Jiannan is still not at ease.

None of the major banks are vegetarians, and all of them eat meat.

"Charlie. This contract is very important to us, are you sure there are no loopholes?"

"Boss. The sixteen of us cross-checked it thirty times and revised it more than a dozen times, and we were sure that there were no problems. ”

"Wairui dog's. What about non-disclosure agreements. ”

"If HSBC violates the non-disclosure agreement, it must pay us $5 billion in damages. Responsibility goes to the individual. ”

"That's good. I'll be waiting for me at the bank. ”

“......”

Hanging up the phone, Shen Jiannan looked at himself in the mirror and scratched his teeth.

With the greedy habits of bankers, they would be crazy with joy to give HSBC such a big luxury gift bag now.

"The hosts. ”

Aso Oritsuki shouted and put the watch on Shen Jiannan's wrist.

The cool jade stays on the pulse, and it suddenly makes people feel refreshed.

Shen Jiannan stood still.

Aso Oritsuki understood, and nodded on Shen Jiannan's lips with his feet.

"Huh?"

Masako Shinkawa was also very interesting, and took the initiative to come over and send a fragrant kiss.

Flutter –

A rag doll flew over and smashed into Shen Jiannan with precision. Seeing this shameless scene early in the morning, Lu Xinyue's strength expressed the dissatisfaction in his heart.

Shen Jiannan puffed his white teeth, walked to the door, and grabbed Lu Xinyue's head without saying anything.

Moment.

The two separated, and Lu Xinyue rolled her eyes fiercely.

Since returning to Hong Kong, this guy has become more and more unscrupulous.

Men, sure enough, can't get used to it.

Shen Jiannan accepted it when he saw it, and pretended to be stupid and asked.

"Enron. ”

Da Da Da –

Say Enron, Enron will arrive.

Shen Jiannan subconsciously turned around and was immediately amazed.

Kardashian changed into a standard professional suit, wearing a white shirt, a black suit, and a short skirt barely reaching to the knee, outlining the thrilling and beautiful scenery.

I don't know if it's because the clothes don't fit, the clothes with good fabrics are so stretched that they can't be fully closed, and the buttons seem to be in danger of breaking at any time.

"Boss. ”

In order to show that there was no ghost in his heart, Shen Jiannan hurriedly retracted his gaze and made a lady-first gesture towards Lu Xinyue.

Lu Xinyue rolled her eyes widely, stepped on her high heels and ticked away.

Kardashian kept a distance of half a meter and followed closely, moving lightly with her steps, and the undulating waves made it impossible to take her eyes off.

Shen Jiannan looked at the backs of the two and was deeply intoxicated.

Suddenly, Kardashian in the back turned her head, and her blue eyes threw a wink in an instant.

Like being electrified, Shen Jiannan hit the corner of the sofa and almost fell and gnawed on the mud.

Kardashian couldn't help laughing, ignoring the embarrassment of the big boss, twisting her waist and throwing the embarrassed guy away.

Endure.

I endure.

Looking at the undulating backs of the two, Shen Jiannan didn't dare to accept the call at all.

Kardashian is a swallow specially trained by the KGB, and if she dares to mess around, she will die a miserable and heroic death.

No, you must ask Peng Er how the crows are trained.

Little girl, wait for me.

In the grassy yard, Tang Dunhou had already been waiting for a long time in an extended Lincoln, and when the three of them got into the car, they stepped on the accelerator under their feet, and the car drove out quietly.

Central.

HSBC Building.

Cohen Merrywether stood in the doorway with a young Chinese woman with her hands folded, and the two occasionally greeted customers who walked into the bank, smiling slightly as a sign of politeness.

Those who know Cohen Merrywether are curious.

Obviously, he is here waiting for someone.

However, as the CEO of HSBC in Hong Kong, there are only those who come to visit Merry Weather to borrow money, how many people can let him wait at the door in person.

Could it be that the Queen of England is coming?