"It's the Federal Reserve!"

Gross sat down in his seat, his eyes drooping, his face trembling slightly, and his whole person seemed to have collapsed, and he couldn't see a trace of spirit at all.

"How could the Fed choose to strike at this time?"

Erlian. Muhammad was still puzzled, pulling his hair hard, his face full of confusion, "It stands to reason that even if they want to implement the QE policy, they shouldn't take action at this time." It doesn't make sense, they're ruining our whole plan. ”

After the closing, the Fed posted a message on its official website, announcing that the Fed would implement quantitative easing, or QE, in the next half month. Long-term interest rates will be reduced to 2.5% to 2.8% through the purchase of long-term government bonds.

In the announcement, the Fed explained in detail the reasons for implementing the policy, which is nothing more than the continued decline of the US economy, and the need to release long-term liquidity in the process of low interest rate policy stimulus. The purpose of releasing liquidity to the market this time is to direct capital flow to the production sector by lowering long-term interest rates. However, in order to avoid inflation, the scale and quantity are not too large. The corresponding follow-up measures will be decided whether to continue to implement the QE policy after half a year to see the trend of economic data.

For the institutions involved in the bond market, this nonsense represents only one meaning: the Fed has stepped in to buy bonds, acting as a majority in the market!

If there is no one in the world who has the richest institution in the world, there is no other institution than the Federal Reserve, because they printed the dollar bills. Whenever needed, they turned on the printing press and could produce the largest number of dollars in the world. Therefore, in terms of funding, no institution can match it, which also determines the invincible position of the Federal Reserve.

So, when the Fed announced the implementation of the QE policy. The encirclement of the Tianyu Fund was immediately self-defeating, and all the efforts of the bears were instantly wiped out, including Pacific Investment Management and Quantum Fund.

When he heard the news, Gross felt like he had been slammed into the chest with a hammer, and he could barely breathe for a moment. When he came back to his senses and knew that the tide was turning. The whole person's spirit was drained, and he could only sit on the chair weakly, like a paralyzed person.

He knew very well that Tianyu Fund was hugging his thigh, and looking at the thickest thigh in the world, no one could shake the thigh. Even if he tried his best, it would be to no avail in the end.

Compared to him, Eryan. Muhammad was a good point, knowing that nothing could be done. Start reflecting on all this positively. It's just that he can't figure out why the Fed chose to rescue the Tianyu Fund in crisis at this time.

"Maybe they wanted to make a move a long time ago, but they were forced by the market situation and didn't announce it before the whole thing was clear." Gross slapped his head and said in annoyance, "Maybe less than 4.0% is their bottom line, and we touched it without knowing it." So they decisively chose to make a move. ”

"So, we did something bad with good intentions?"

Erlian. Muhammad tilted his head and thought for a moment. I thought it was very likely, and I sighed for a long time, "Well, if you can give us an extra week, or if you don't touch this line......"

It's a pity that hypothetical questions don't exist, and failure is failure. Ironclad facts.

"Tomorrow's trading time, let traders try to make a move and quickly cover their positions from the market."

After ten minutes of regret, Gross barely bothered to brace himself and said. "We can't let the floating losses continue to expand."

"Our loss this time?"

Erlian. Muhammad asked cautiously, knowing that Gross was very taboo about talking about it, but as the company's CEO, he had to know the likely number of losses in order to prepare for a rainy day.

"Between $500 million and $1 billion!"

Gross's brow furrowed imperceptibly, as if he hated discussing the topic, but the next moment his brow furrowed again, "This is just a preliminary estimate." However, based on past experience, this figure should be more reliable. ”

"It's strange to be reliable!"

Familiar with Gross's style of speaking, Elian. Muhammad is well aware that the so-called "$500 million to $1 billion" will end up with a very likely figure of $1 billion, or even more than that. But he dared not speak out, because Gross is the cash cow of the entire fund, and his prestige far exceeds that of his unworthy CEO. So even if Gross said it lightly and with a perfunctory attitude, he could only endure it.

Because during this time, Gross went on a frenzied basis, and the entire Pacific Investment Management Company sold more than $10 billion in 10-year Treasury bonds, and the flip side of the decline in yields was the rise in prices, which brought them huge losses. Fortunately, they managed to pull down the average price by selling a large number of positions at a yield of 3.2%, which would otherwise be more than $1 billion.

"We can't go on like this!"

A thought popped into Eryan's mind. In Muhammad's mind, "we should diversify our investments and stop being limited to the bond market!" ”

He secretly made up his mind.

The cause of the civil unrest at the Pacific Investment Management Company was laid.

……

"Impossible, impossible!"

Soros thundered and roared in a high-pitched voice. He didn't believe Rodney at all. Jones analyzed, just a few minutes ago, he, like Gross, was dumbfounded when he got the news that the Fed would implement QE.

Like Pacific Investment Management, the Quantum Fund will also suffer huge losses. But unlike Gross, Soros never believes that the whole thing is accidental.

"Can they bribe the Fed?"

Rodney. Jones shook his head, unimpressed by Soros's reaction, "Or do you think they can influence the Fed's decision?" It's impossible! ”

"No, no......" Soros's voice slowly weakened. Rodney. Jones's words were like a bullet hitting him in the heart, and the two possibilities that the other party said could never exist.

Even assets under management such as Pacific Investment Management, or Bridgewater Associates, a top hedge fund, are unlikely to influence the Fed's decision, let alone a foreign fund, Tianyu Funds.

"What is the reason?"

But when it comes to Tianyu Fund, it is based on its own judgment. Accurately predicting the actions of the Fed, Soros is even more unconvinced. From beginning to end, this layout was carefully prepared and planned by him, and it can be said that no second person knew about it before it was officially announced. Naturally, he couldn't believe that Zhong Shi guessed what he was thinking. united with the Fed to give itself a bigger ambush.

"What went wrong? Where exactly? Soros held his head and slowly squatted on the ground, his expression painful and hideous. It will be difficult for anyone to miss such an opportunity, let alone the vengeful Soros.

Rodney. Jones quietly looked at the painful Soros, and a trace of unbearability flashed in his eyes. But the facts are in front of us, and even if Soros thinks hard about it, I am afraid it is impossible to think clearly about the connection between the Fed and Zhongshi. Because in Rodney. Jones seems to have no connection between the two at all.

"George. Let's think about how it ends! ”

Rodney. Jones whispered, "I made a rough estimate that we lost at least $700 million this time." This is definitely not a small amount, especially in the current situation. We have to make an astronomical amount this year, or our customers will leave us. ”

"I don't give a fuck a damn idea!"

Soros looked like a mad tiger and roared loudly, "It's a big deal to lose all this money." You must know that Lao Tzu also has a net worth of about the same amount now, and at most he will close the quantum fund! No matter what. I'm going to make that kid pay! ”

As he spoke, a bitter expression on his face. Obviously. Even such a defeat did not diminish his hatred of Zhongshi in the slightest.

Rodney. Jones sighed and shook his head imperceptibly, he knew that in the current situation, it was useless to say anything, Soros had fallen into deep paranoia. At that moment, he quietly walked out of Soros's office. Gently closed the door.

……

"It turned out to be the Federal Reserve!"

The thrilling battle is finally over, and everyone at Tianyu Fund is relieved. When they saw the offensive of the "allies" like a rainbow, the entire Tianyu Fund was boiling.

But it wasn't until the early hours of the morning after the close of trading that they realized the identity of this brave "ally" turned out to be the Federal Reserve that everyone knew. Before that. No one ever imagined that their "ally" turned out to be the Federal Reserve.

At this time, the last shred of fears about the possible underfunding of the "allies" disappeared without a trace.

"Zhong Sheng, how did you come up with the idea that it was the Federal Reserve?"

Everyone outside the door was celebrating, and Jiang Shan took advantage of everyone's inattention, quietly slipped to Zhong Shi's office, and asked secretly, "But I still haven't figured it out, when did you get in touch with the Federal Reserve?" ”

"Actually, we didn't get in touch!"

Zhong Shi was in a good mood with a smile on his face, and the Parker pen in his right hand was turning quickly between his fingers, dazzling, "Around November, I realized that the U.S. economy was not good, and it was very likely that the QE policy would be implemented again. So until then, I started to keep an eye on the US economic data, and finally in December, I made up my mind to take a gamble on the 10-year Treasury market. As you can see, the bet wins! ”

"But what if the economy warms up and the Fed doesn't implement QE?" Jiang Shan said cautiously, "There is also inflation data, if this data rises, bond yields will inevitably rise, and we don't ...... either."

"If you want to gamble, of course there are risks!"

Zhong Shi waved his hand indifferently, "What you need to know is that although the Fed's behavior meets all the norms of hedge funds, their ultimate goal is not to make money. Promoting employment, stabilizing prices, and moderating long-term interest rates are their real goals. During a recession, it is not possible for them to inject liquidity directly, and before that, there was enough liquidity, and it was the sense of risk aversion that prevented this liquidity from flowing to the market for the means of production in a timely manner. If the data doesn't improve, they are bound to do more, and QE is the most likely one. ”

"As for what happened later, the Federal Reserve thought that I was helping the Chinese government absorb positions, and specially sent someone to warn me. As a result, they confirmed their idea of implementing QE. So even at the last minute, I wasn't very afraid of the gains and losses of this part of the position. But if I hadn't used some small tricks, I'm afraid the Fed wouldn't have acted today! ”

As for the little trick he said, he naturally didn't plan to explain it to Jiang Shan.

"You mean, even though they did all this, they weren't making the profit they wanted?"

Jiang Shan thought about it for a while, and finally understood what Zhong Shi meant, "That is, the greater the profit on their balance sheet, the more they will implement QE?" And when there is a loss, is it the situation they want? Yes, yes, that's exactly the case. ”

"With their approach, what institution in the world can compete with them?"

Zhong Shi said with heartfelt emotion, "It has always been rumored that we are the first hedge fund, but where can we be the first hedge fund?" The real No. 1 hedge fund is the Federal Reserve! (To be continued......)

PS: Thank you book friends seanju1, Amy, it wasn't me who voted for the monthly pass last night! The author will work hard, I hope more book friends can support this book, vote more, collect more, thank you~