Boaz. Weinstein and his team discovered the price deviation in the CDX market in November last year, and his first reaction was to rush into the arbitrage, but it didn't take long for him to find that the price deviation was still there, and he was not affected by the arbitrage funds at all. It was only after delving into the market that he realized the crux of the whole problem.

As an investor who is also an aggressive style, Boaz. Weinstein soon decided to snipe at the market anomaly, but when he poured his money into the market, the price deviation remained the same as if nothing had happened. It was only then that he realized that his opponent could be a Big Mac.

By the time he suddenly realized, Saba Capital had no way back, either continuing to carry on or admitting defeat and leaving, and admitting defeat and leaving the market may lead to the dissolution of the entire fund, and such a large loss will lead to a direct collapse of investor confidence.

Just when he was in a dilemma, a mysterious force appeared in the market and indirectly saved his fund.

Since January, this mysterious force has begun to secretly absorb IG9 contracts, although it is not visible at all on the disk, but the sensitive Boaz. Weinstein also discovered this force by correlating the magnitude of the change in yields with the amount of new money in the market.

To put it simply, since the capacity of the market is limited, the amount of money thrown by the market manipulator will also show a positive correlation with the corresponding change in the market. But Boaz. Weinstein found that although the manipulator frequently threw large sums of money over several months, the magnitude of the market movement became slower, and although the spread between the two contracts was still slowly widening, it was clearly a small amount less than the amount of new money.

It is this lack of variety. Jean Boaz. Weinstein realized that the market had also infiltrated a giant crocodile.

At this time, he was working paper, constantly calculating on paper, hoping to calculate the position of new entrants through the relationship between the two.

"According to the usual opponent volume, it should be in the ...... around $1.425 billion, and then the price fell in ...... Around 4.5%. But now the price has fallen by only 3.15%, and the $5 billion position has been depleted. Excluding the momentum of the decline and the amount of new funds that may enter, then the positions they absorb will reach ......"

Calculated here, Boaz. The pen in Weinstein's hand just stopped, and there was an incredible look in his eyes, "At least $3.5 billion worth of positions were bought, oh my!" ”

The next moment, as if remembering something, he pulled open the drawer and tossed through the pile of papers. Find a piece of paper full of numbers.

"$2 billion, $4 billion, $3.4 billion......"

He unconsciously muttered this string of numbers, and after a while, he solemnly added the words $3.5 billion after this string of numbers, "So far, they have accumulated at least $40 billion in positions, and maybe more than that." But what I don't understand is, why haven't they launched yet, are they still waiting to accumulate more positions? ”

Boaz. Weinstein is well aware that this mysterious force is in the same camp as himself. To a certain extent, it relieves the pressure on its own side. But he still has a lot of grievances about this "ally".

Because he is under increasing pressure from investors.

"No, this is absolutely not going to work!"

He stood up irritably. After pacing back and forth in his spacious office, he suddenly stopped and said to himself, "Maybe they have bigger plans, but I can't wait now." Sorry, there's no way I can help you! ”

It's like having made up your mind. He took a voice changer out of a drawer, put it in his arms, and then put on his suit and walked out.

The streets of Manhattan are as crowded as ever. The crowd came and went, and the faces were covered with numbness and exhaustion. It's the richest place in the world, but it's also the most stressful place in the world, and they have to give everything they have to survive in such a place.

Boaz. Weinstein is the same.

In the midst of the bustling crowd, Boaz. Weinstein walked indifferently into a phone booth, put a voice changer around his neck, and dialed the Wall Street Journal.

"Hey, is it the Wall Street Journal? I'm going to break the news! ”

The person who answered the phone was a young woman, who was visibly stunned when she heard this duck-like sound, and then replied mechanically: "Hello, may I ask who you are?" What do you want to break the news? ”

She obviously didn't realize that the other party was wearing a voice changer to disguise her identity.

It's no surprise that there are countless anonymous phone calls around the world that want to break the news to the Wall Street Journal every day, and as a receptionist, she has long been surprised by such behavior.

But for Boaz. For Weinstein, this is the first time he has done such a revelation, and he is inevitably a little flustered in his heart, when he heard the question from the other side, a wave of irritability couldn't help but come out of his heart, and he began to speak unpolitely, "Don't ask me who I am, I have major news material to expose, I believe you should be interested in this." ”

"You can say now, we're going to record the conversation, and then there's a dedicated reporter to follow up on that."

The female voice still looked indifferent, and only replied politely, "But as for whether the final report is reported or not, that's the reporter's business, and I won't make any guarantees here!" ”

"Damn it!"

Boaz. Weinstein cursed secretly, of course, he didn't intend to bet all his treasure on the Wall Street Journal family, and immediately held back his anger and said, "On the CDX index of CDS, there is a big bank manipulating a certain market. ”

Because CDS is an over-the-counter market, there is nothing regulators can do about it, so it is obviously unlikely that they will be able to punish each other for the crime of market manipulation. If you want the other side to get sanctions, you can only get the entire market to correct the market manipulation through media exposure.

"What is CDS?"

The female voice finally had a little reaction, "And what's CDX?" Which bank manipulated this stuff? If you can't tell, it's hard for our reporters to report! ”

"God, find someone who knows how to do it!"

Boaz. Weinstein finally couldn't contain the anger in his chest. yelled into the microphone, "Damn, don't waste my time. Go, find me someone who knows how to do it, I don't want to talk to a layman like you. You know, what I'm trying to say is a very important thing, and if you don't understand anything, get out of here. Immediately! ”

A deafening roar came from the microphone, startling the operator, who realized that there seemed to be something wrong with her attitude, and immediately apologized in a hurry: "Sorry, this gentleman, I will immediately connect your line to the reporter's side, and ask you to keep talking." ”

Only then did she realize that the other party really seemed to have something important to say, and soon she connected the call to a reporter she knew well.

If not for the news later. She may never know the significance of the call, which was worth $10 billion. And because of her negligence, the Wall Street Journal was almost unable to report the news.

Thankfully, all of this was remedied in time.

"I'm Adam. Williams, who are you? ”

A real financial reporter answered the phone, and he didn't figure out what the situation was, but he heard someone break the news, so he answered, "May I ask if you have any news that you want to break to us?" ”

"Derivatives market. I wonder if the Wall Street Journal is interested in news of market manipulation? ”

Another voice was heard, Boaz. The anger in Weinstein's heart finally eased a little. Only then did he repeat the situation just now, "How is it, are you interested?" ”

"Of course!"

Adam. With two bachelor's degrees in economics and journalism, Williams is no stranger to the market, and when he heard the word market manipulation, he immediately became intrigued. Pull out a post-it note and start taking a quick note, "Tell me everything you know, and I promise this news will get the public's attention." ”

"You should know about CDS, right?"

Finally waiting for someone to understand, Boaz. Weinstein was greatly relieved at this time, and began to speak continuously. "Yes, it's that credit default swap derivative, over-the-counter product. A CDX index has been derived from the CDS market, which tracks the price of CDS in the market and can also reflect the anomalies in the bond market. ”

Later, a large institution developed IG index futures based on the CDX index, and selected 125 large companies to compile into this index futures, which was used to collect the price of CDS and issue it every six months. However, in the IG9 contract, there are large institutions that have manipulated the market, resulting in the market not being able to reflect normal fluctuations. ”

"How do you know this market is rigged?"

Adam. Williams frowned, roughly figuring out the situation. In many cases, the relationship between institutions and the media is symbiotic, the organization wants to achieve certain goals through the media, and the media also wants to get first-hand information through the organization. Now the revelations are obviously like this.

But this kind of revelation is sometimes difficult to distinguish between truth and falsehood, so he has to ask for more things.

"Hehe, go and look at the price of a single CDS, and the price in the IG9 contract, the two sides deviate a lot, there is a lot of arbitrage space, but the price is not able to self-correct, so you know that there is something wrong with this!"

Boaz. Weinstein didn't hide his selfishness, and said bluntly, "That's what I do, and I found that no matter how hard I tried, I couldn't arbitrage this profit, and then based on the overall position changes, I realized that this market was manipulated by a certain institution!" ”

"Which agency?"

Adam. Williams hurriedly jotted it down on the post-it note, and then asked, "Also, do you have any solid evidence?" ”

"Nope!"

Boaz. Weinstein didn't think about it, so he didn't hesitate to deny the other party's question, "As for the manipulation agency, according to the manipulation, I think it is one of the five major banks." JP Morgan, Bank of America, Goodman & Co., HSBC or UBS. ”

"Is there anything else you would like to add?"

Hear this, Adam. Williams basically understood what was going on, and after recounting the whole situation, he asked, "Is there anything else we need to publish?" ”

"There is another ...... in the market"

I was about to blurt out, but Boaz. Weinstein stopped in time, "There's nothing else to add." You can find an institution or an expert to confirm it, and I guarantee that you will come to the same conclusion as I did. ”

Just now, he almost told the story that there was another big crocodile in the market. But when the words came to his mouth, he suddenly realized that if he angered the other party like this, he was afraid that the gains would outweigh the losses, so he took back the words that came to his lips at the moment.

"I'll confirm what you say!"

It was obvious that the other party was a little unsatisfied, but Adam. Williams already knew what he wanted, so he didn't continue to ask, "Is there any other agency that knows about this news so far?" ”

It would be good for the Wall Street Journal if it could be reported before the rest of the competition, so he needs to know who else knows about it so far.

"You're the first!"

Boaz. The corners of Weinstein's mouth twitched slightly, and then he told the other party, "But soon, both the Financial Times and Bloomberg will receive the news, so if you want to publish it before other stories appear, do it now!" ”

With that, he hung up with a thud. (To be continued.) )

PS: Thank you jadeking, phantom rampage, shallow rays of moonlight, violetvirgin, let me think about it, etc. There are many other book friends who have not mentioned it and expressed their gratitude! Seeing so many book friends voting for this book, the author expressed his gratitude and will definitely continue to work hard, and at the same time, he will also work hard to conceive a new book~Thank you~