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"Financial tricks?" Although Duan Tianwolf was not proficient in finance, he still heard the mystery from this word, "Let's hear it." Pen Fun Pavilion www.biquge.info"

"Securitization." Long Guohai replied.

"What is securitization?" Duan Tianluo asked again.

Long Guohai sat in front of Duan Tianwolf and thought for a while, and then said: "This is a little complicated, in this process, there are several key terms, lending companies, investment banks, asset rating companies, hedge funds, large funds such as US pension funds, and ordinary people. ”

"Well, go ahead." Duan Tianwolf said.

"The first is that people in the general population whose income is not very stable, or even have no stable income at all, want to buy a house. If you don't have a stable income and no money, can't you afford to buy a house? So what do you do? That's when money lenders, i.e., subprime mortgage lenders, came into being. They'll tell you, no problem, I'll lend you money. Not only will I lend you money, but all the conditions will be favorable. Are you worried that you can't afford it? It doesn't matter, just pay a little bit in the first few years, and then increase the repayment amount later. What the? Are you afraid that you will not be able to pay it back in the future? Don't be stupid, you look at the current housing prices, they are rising every day, you really have no money by then, can't you just sell the house? I dare to borrow, but you still dare to borrow? ”

In this way, the buyer borrowed money from the loan company. In theory, the lenders are right. As long as U.S. real estate keeps rising, there will be no problem with this loan. But the question is, how can house prices keep rising? Didn't the United States experience a long eight-year bear market from 1987 to 1995? What if this happens? The loan company thought about it, well, no, this is very dangerous, I can't take this risk myself. That's when the lender thought of investment banking. ”

"Investment banking is a central pillar of American finance and a core interest of the Rothschild family. In the final analysis, all financial activities in the United States and even in the world are controlled by US investment banks. Investment banks are very powerful, in the mouths of investment bankers, there is a commonly used word, called financial innovation, what is called financial innovation? Financial innovation is, that is, you can think of, the money you may make, I will help you realize it. ”

Well, after the loan company found the investment bank, he was still a little nervous, because he knew that his loan was actually very risky, as long as the real estate in the United States was turbulent, the non-performing loan ratio would soar rapidly. They thought to themselves, even they could see it, and the bosses of the investment banks were unlikely to be able to see it. They are right, they can see the problem, how can the investment bank not see it? However, there is one thing that these lenders have forgotten is that investment banks are never afraid of risk, as long as there is enough profit return. And at the moment, in the eyes of investment bankers, this thing is obviously very interesting. So, the bigwigs of the investment bank didn't say a word, and with a stroke of the pen, they did it. ”

The people at the loan company breathed a sigh of relief, and the managers at the investment bank got busy. What are you busy with? I'm busy making packaging. Packaging for whom, asset rating companies. To put it bluntly, the asset rating company is equivalent to the Quality Supervision Bureau, and before your apple goes on the market, he will label you first. It is the best apple, which has a good taste, tastes fragrant, and is good for the body and mind. Generally speaking, as long as you have this label, your apples will sell well. ”

"Investment bank managers are working all night and divide these loans into three parts according to the quality of the loans, the first part is the low-level part, which is called the ordinary D (abbreviation of debt collateral certificate), accounting for 10 percent, the second part is called the intermediate part, and the share is also 10 percent, which is called the intermediate D, and the last is the high-level, the largest share, which is 80 percent, called the senior D. Investment bank managers scratched through their brains and prepared a lot of reports, data and numerical models for these loans. Then, I rushed to the asset rating company. ”

"The bankers in the investment bank said very sincerely, well, my ordinary D and intermediate D, it is indeed a bit dangerous. It makes people think that he is a real person, and then he said, but I, a senior D, is really more reliable and insured than the Empire State Building. And then they immediately threw out a bunch of data, you see, how low our non-performing loan ratio has been in the last three years. And then there is a digital model made by a Nobel Prize-winning expert, and you see, according to the latest digital model in the world today, the non-performing loan ratio will remain very low for the foreseeable future. Isn't it safe? Let me tell you, it's not just so safe, you see, if something really goes wrong with this loan, it will also pay the money of the ordinary D and intermediate D parts first, and the money of the advanced D will not be moved until the end. Unless the U.S. real estate crashes, no matter how miserable it is, it will not be possible to move the high-end part of the money. ”

"What if someone says, "What if the U.S. real estate really crashes? It's not like it hasn't collapsed in history. The bankers in the investment banks will immediately laugh how it is possible, even if the earth explodes, the United States will be bombed to the moon alone to continue to prosper. Then, the bankers of the investment banks will smash out a ton of research reports to prove how strong the US economy is, how gratifying the current real estate development situation is, in a word, if the US real estate collapses, it is harder than blowing up the earth. ”

Long Guohai is really a natural financial expert, no matter what kind of mood he is in, as long as he talks about finance, he will immediately dance with his eyebrows and his mouth like a river. Therefore, when Long Guohai said all the way just now, Duan Tianluo didn't interject.

But hearing this, Duan Tianwolf couldn't help but interject a little strangely: "Could it be that these asset rating companies have been fooled like this?" ”

Long Guohai smiled and shook his head, "Of course not." The people in these asset rating companies are no more stupid than the bankers in the investment banks, they are all human beings. Their financial instincts are no worse than those of any financier, plus they study the history of past recessions in the US economy all day long. He has a deeper understanding of the sentence that flowers are red than anyone else. How could they be fooled by investment banks? But ......," Long Guohai said here, taking a sip of wine, "you have to know that in the financial market, it doesn't matter if it's real or not, what matters is whether you look like it or not." What do you play in finance? Isn't it just a thought? How many people buy stock in a company because of how much actual performance the company has? Do you think the whole world is Warren Buffett? ”

"Besides, you think the asset rating company is doing it for nothing? Investment banks have to pay for it. You ordinary investors don't pay salaries to the people in the asset rating company, and it is the investment bank that really supports them. People have given you a good voice and given you enough materials to explain to the outside world, what else do you want? Is it true that you don't want to mix it up? As a result, the reasonable, and at the same time the asset rating company with bulging pockets did not say a word, and the big seal was stamped, and the rating of senior D was. What is it called? To put it simply, it's 100 percent. ”

"With this rating, the investment bank will be easy to do, the senior D is easy to get, sell a full house, everyone will get rich, the real estate will fall in the future, the loan will collapse, it's none of my business, let those fools who bought the senior D cry, anyway, the silver has been put in our pockets." Loan companies and investment banks have achieved risk-free returns, and all the risks have been given to senior D Kaizi. ”

Hearing this, Duan Tianwolf opened his mouth in surprise, even with his genius, he was shocked by this financial method of the financiers, "I finally know why the Rothschild family is so profitable. Who wouldn't get rich with such a money-making method? ”

Duan Tianwolf sighed, frowned again and said: "But there is a problem, if you say this, then even if the subprime debt problem breaks out, it can only hurt the interests of ordinary Americans, not these investment banks, let alone the Rothschild family." ”

"If that's all the investment bankers do, then they're really just making money and not losing money. But the problem is that the greed of financiers is endless. After making this money, the investment bankers turned back to stare at the ordinary D and intermediate D, and thought, tsk, this thing is still on the spot anyway, should I find some way to let this thing also help me make some money. ”

After a little consideration, the bigwigs of the investment banks came up with a good way to find a hedge fund. What is a hedge fund? That's the one who licks the blood from the knife's edge. Ordinary D and Intermediate D are indeed relatively risky, but relatively speaking, the returns are indeed high. Generally speaking, the lowest interest rate in the world's major developed countries is the capital. As soon as the hedge fund calculated, I went to the bank to borrow money, exchanged it for dollars, and bought it, my annual rate of return is quite high, and it is no principal and profit, why not do it? Dry! ”

So, just like that, the hedge fund took over the burden. Investment banks have thrown off their burdens, hedge funds also have a way to make money, and everyone is happy again. Here, there is only one risk, and that is that some hedge funds are set up by the investment banks themselves. Other than that, there is no risk. ”

"However, the next thing started to get weird. U.S. real estate has been soaring since 2002 and has almost doubled by now. In this way, the non-performing repayment rate of subordinated debt is very low, and in this way, these d's start to become popular because it has a really high rate of return. All of a sudden, the investment banks were all hot-eyed, I relied on it, it turned out that this thing was so profitable, I knew that I would do it myself. So, with this feeling of remorse, driven by profits, investment banks bought these hedge funds in a big way, wanting to share the benefits brought by these funds because of D. This is the first crisis of the investment banks, they feed a dog a bowl of arsenic, and see that it does not die for a long time, and it grows bigger and bigger, and they can't bear it, and they actually go to eat the dog's dog meat. ”

(To be continued)