Chapter 56 Asset Management

……

As one of the five major investment banks on Wall Street, Merrill Lynch Securities is faster than Guo Shouyun imagined, and he has already called him before the three-day deadline has expired.

"Mr. Guo, after our investigation and comprehensive evaluation, Merrill Lynch is willing to issue this ABS asset-backed securities based on your 5 sets (volumes) of novels in the next ten years. We will also actively assist you to get a triple-A rating from the rating company!"

Danny Lewis, who was sitting across from him, said solemnly.

"Merrill Lynch made the right choice. ”

Although Guo Shouyun's expression was calm, his tone was extraordinarily confident. Without it, Westerners eat this set. In the mall, the law of the jungle is more naked than life.

"I think so too!"

Formal negotiations began between the two parties on the issuance and repayment method, financial supervision, and the par value of the bonds. Forget about the rest, Guo Shouyun is most concerned about the repayment method.

After consulting with Merrill Lynch, Guo Shouyun's proposal to 'repay when due' was approved. This also means that the ABS bond issued by him will have to repay the principal and interest after the expiration of the 10-year issuance period.

There are three main reasons for this choice. First, in the early stage of his career development, he needed more funds to lay a foundation for his future. Second, the dollar has depreciated, and the cost of repayment after 10 years is significantly lower. Third, the subprime mortgage crisis. When the crisis prevails, the price of his bond will undoubtedly depreciate, and if it depreciates by more than 10%, he can not only offset the interest after buying it, but even make money if the price is low enough.

After nearly a week of negotiations, with the help of George Davis, a professional who specializes in business law, who flew from San Francisco, Guo Shouyun signed a cooperation agreement with Merrill Lynch and received a triple-A buy rating from Moody's.

……

"Boss, this is the registration document you want for 'Phoenix Asset Management'!"

Wendy Solo pulled out a file bag and handed it over. Since she was busy with the merger and acquisition of Villefort Software, she rushed to Guo Shouyun's side in Los Angeles.

After taking it and opening it, after carefully reading the contents of the document, Guo Shouyun nodded. This is his third registered subsidiary, located under Phoenix Holdings. It is also the real starting point for him to play with capital!

"What time is it?"

"At 14:35 p.m., it's 25 minutes before you meet with the headhunter provided by Heidrick & Struggle!" Wendy Solo fasted.

Guo Shouyun nodded, twenty-five minutes was enough for him to arrive at the meeting place. Thinking of the next meeting, he couldn't help but open the background information of the target person provided by the headhunter. After looking at it twice again and making sure that there would be no omission, Guo Shouyun, who was sitting in the back seat of the car, closed his eyes. It was a time to write, negotiate with Merrill Lynch and Moody's, and worry about new book sales from Matrix Pictures and Thornbird Publishing, and even in the prime of life, he felt a little tired.

Through the mirror in the middle, Wendy Solow, who was driving, glanced at Guo Shouyun behind him with admiration, pinched the time on his watch, and didn't speak until he had to remind Guo Shouyun: "Boss, we're here!"

"It's here?!" Glancing at the signboard of the Hayes Resort outside, Guo Shouyun nodded, "Let's go down." ”

As the two of them got out of the car, the staff accompanying him hurriedly stepped forward and guided them to the meeting place.

In a quiet tea room, Guo Shouyun met the person he wanted to hunt.

"Mr. Zhang!"

Wearing a black suit, a thin face, slender eyes, and gold-rimmed glasses, a middle-aged Chinese man stretched out his hand to Guo Shouyun at the same time, he also took the initiative to stretch out his right hand to the other party with a smile.

"When Mr. Guo's age and achievements are combined, it is really amazing!"

"You're welcome, please be seated!"

After listening to too many compliments, Guo Shouyun didn't feel it, of course, being polite and thoughtful was a must.

In order to save time and energy, Guo Shouyun no longer talked nonsense, "I believe that Heidrick & Struggles has made our conditions very clear, I don't know if Mr. Zhang has any objections?"

"The terms of $500,000 a year plus performance dividends are excellent, and I don't have a problem with that. However, I am very curious, why did Mr. Guo choose me? With the amount of trading funds and treatment you provide, you can hire a much better fund manager than me. ”

Guo Shouyun smiled and said, "Does Mr. Zhang think he is not excellent?"

"On Wall Street, and even in the global capital markets, not many people dare to say that they are very good!" After taking a deep look at him, William Zhang said indifferently.

He is a second-generation Chinese, and although he has accepted the liberal ideas of the United States, he has also retained the modesty that is unique to China because of his parents' relationship.

After Guo Shouyun smiled indifferently, he took out a document from his briefcase and handed it over.

"This is all the information that Heidrick & Phillips has given me about Mr. Zhang's life experience over the past 52 years. We won't talk about the information you have before you graduated with your Ph.D. What I like is your performance in the 24 years since you entered the **** asset management department. … In addition to the first 7 years, in the next 17 years as a fund manager, the average annual growth rate of the funds and asset management plans you are responsible for is 8%! And the growth is stable, there are no big ups and downs, and this is what I value the most!"

After taking the information and skimming through it briefly, William Chang put it down.

"Not many people on Wall Street like stability, they prefer fund managers who bring in high returns!"

After glancing at him, Guo Shouyun smiled and said, "Mr. Zhang is Chinese, I don't know if I have heard a word?"

"What?"

"Those who are good at fighting have no great merits, and those who are good at doctors have no brilliant name!"

William Chang nodded after a moment's thought.

"My father was a professor of medicine at Long Island University in New York, and I once heard him say that. ”

It means that true strategists often do not have outstanding military achievements, because they can often use political, economic, authoritarian and other factors to nip the war in the bud before it begins. Clever doctors often don't have much reputation, because they often cure the disease by preventive means before the patient has even developed the disease! In my opinion, the real top financial elite is the fund manager who can ensure long-term stable profits, and such talent is exactly what I need. Guo Shouyun affirmed.

"Mr. Guo's words really make people feel very comfortable. But I'm 52 years old and I'm going to retire in a few years. I'm afraid my energy can't support Mr. Guo's ambitions in the capital industry!" William Chang shook his head.

"Mr. Zhang doesn't have to worry about this. I am responsible for the company's strategic investment direction, and you are only responsible for implementing my decisions and the daily management of the company!" Guo Shouyun smiled.

William Chang frowned, feeling that he was just a manager who didn't have much real power.

"The people Mr. Guo wants are all over Wall Street, so why bother to find me at such a cost?"

"There are three reasons for this: First, we are all Chinese. Second, I feel that you can rely on your track record. Third, you have worked in the Wall Street capital market for many years, and you have enough contacts to get a higher margin and securities lending quota in the secondary market!"

William Zhang nodded clearly, and after thinking for a while, he stared at Guo Shouyun deeply, "I'm afraid that the third point is the reason why Mr. Guo found me!"

Guo Shouyun smiled and did not deny it.

The U.S. capital market is very mature, and there are various conditions and restrictions in it. If Guo Shouyun wants to enter the stock market and bond market to invest and want margin trading, he must have more than six months to open an account. In addition, due to risk considerations, securities companies will also impose certain restrictions on private clients who conduct margin trading and securities lending on the company's platform. For example, the total amount of personal assets, the proportion of risk assets in total assets, and so on.

In addition to the above, the core reason is the amount of margin trading, that is, the multiple of financial leverage. Although the financial regulations in the United States are not as strict as they were after the subprime mortgage crisis, the margin limit is set at 50%. But a newcomer to the capital market like Guo Shouyun, don't think about leverage. So, in order to make a lot of money, you have to be flexible.

Just like now, he founded Phoenix Asset Management, and then William Chang was the company's fund manager, designing an asset management plan and submitting it to the Securities and Futures Commission, and then Guo Shouyun put his money into that plan. In this way, on the surface, it seems that William Zhang is the operator of this asset management plan, but the person who actually makes the decision is Guo Shouyun. When Guo Shouyun needs margin financing and securities lending, with William Zhang's connections and credibility accumulated over the years of work on Wall Street, he can definitely get a very high quota.

Previously, he used the ABS securities issued by five books in the next ten years to raise $350 million, in order to provide sufficient funds for the next turmoil in the capital market.