A week later.

Michael Barry, the head of the Legacy Fund, sat in the same place where John Paulson had sit, and the person sitting face to face was Luo Sheng.

After meeting, there is a huge gap between Michael's image and Luo Sheng's impression, and he can't see John Paulson's neat financial men's suit on him at all.

A t-shirt + shorts is standard for Michael, he has a habit of running around the office barefoot and has a drum kit in his office.

Michael lost one eye to cancer as a child, and one of his eyes now has a prosthetic eye.

He started learning about the stock market when he was in the second grade, starting with simulated investing, and by the time he was in middle school, he was already putting real money into stock market trading.

But in reality, he almost became a doctor in the beginning.

However, the investment attracted a lot of attention, and he spent almost all of his free time in the evening, and opened a blog dedicated to it.

This led to him falling asleep standing up during a complex surgical operation, breaking a patient's oxygen tent, and eventually being kicked out of the operating room by doctors, leaving him as a doctor at the age of 29 and stepping onto Wall Street as a trader.

Peers who know him are accustomed to calling him Dr. Michael, not Mr. Michael.

It turns out that Michael belongs to Wall Street, and he is a good trader by nature.

In 2001, he founded Legacy Capital, which has generated an impressive rate of return for investors, bringing them a terrifying return of 55.44% in the first year of its establishment.

At this time, Luo Sheng looked at Michael, he didn't know what the head of Heirloom Capital was, if it really didn't work, he would rather put the remaining $2.9 billion in Paulson's hedge fund to take care of it.

So Luo Sheng decided to play a scene and asked: "I now have $2.9 billion in cash lying in the bank, losing tens of thousands of dollars every day, the return on investment of Heir Capital is quite amazing, I will hand over the $2.9 billion to you to take care of Michael, but before that, I need you to answer me two questions, first, how much cash does the Heir Fund have now, and second, what will you do with my banknotes?" ”

Michael didn't hesitate and immediately responded: "$1.3 billion, if you give me $2.9 billion, I will take it to bet on the national housing market, credit default swap." ”

Suddenly, Luo Sheng looked at the division with blank eyes, and subconsciously spread his hands and said, "What? ”

Michael recognized Luo Sheng when he saw him, a tech giant from China, the top 10 super-rich people in the world, and the youngest billionaire in the world.

However, Michael doesn't think that he can be as easy as the technology industry in the financial market, in his opinion, Luo Sheng contacted him this time, most likely because he liked the good rate of return brought by the heirloom capital to investors, so he wanted to entrust a sum of money to inject heirloom capital to hedge or appreciate, that's all.

To attract such a super-rich man, Michael is still a little proud in his heart.

So, he told Luo Sheng: "In the 30s of the 20th century, the housing market in the United States plummeted by about 80%, and half of the loans defaulted, but there were many signs in advance, and everyone could see it, for example, one of the characteristics of the investment fever is the rapid rise in the complexity and ratio of financial fraud. And it has already hit a new high since the 30s of the 20th century. ”

Luo Sheng shook his head: "So, what does this have to do with you betting on the real estate market?" ”

Michael smiled and said: "You may be confused about mortgage-backed securities, subprime mortgages, and bond tiers, but this is normal, and Wall Street likes to use these seemingly lofty terms to make non-professionals think they are professional, and even make investors unable to ask about those investments." ”

At this moment, it is dinner time, and Luo Sheng is a guest.

He poured a glass of wine for Michael, then looked around the table and pondered which plate to start with, and said casually: "Eat and drink while talking, preferably so that a non-professional can understand." ”

"Thank you for the wine."

Michael responded politely, took a sip and continued: "The so-called mortgage bonds are to make the big banks crazy money, they make billions of dollars on the 2% commission of each bond, but then they find that the loan is not enough, the house is only those who have a good job and can afford to buy a house, and the bank has to fill it with riskier credit, so that their money-making machine continues to operate, and these high-risk credits are subprime mortgages." ”

"But it's just a bunch of AAA rated mortgages, which used to be guaranteed by the federal government, but now it's different, there is no guarantee, and it's divided into a bunch of tiers. The highest level is AAA, which can be the first to get repayment, and the lowest level is B, which is the slowest to get repayment, and is the first to be defaulted, but the B level has good profits, but the risk is also high, and sometimes it will be defaulted, and B and BB will be reduced from low risk to garbage if they continue to develop. ”

Michael took another sip of wine, and commented that Luo Sheng, who was enjoying dinner with his head down, spoke freely with the strength of the wine: "This is the lowest level of consumer credit rating, there is no need to provide proof of income, the floating interest rate is also rubbish, the default rate has risen from 1% to 4%, and as long as it rises to 8%, there will be a lot of BBB rating value to zero." So I'm going to short these bonds, which is a bet. ”

Luo Sheng immediately looked up at him: "You said that the value of the default 8% bond will be zero, and now it is already 4%......"

Michael: "That's right! ”

Luo Sheng: "What if it goes to 8%? ”

Michael even leaned back against the seat, crossed his arms and was silent for a moment, and then looked at Luo Sheng: "If it goes to 8%...... The state of the U.S. economy will ...... Boom！！ It could even trigger a full-blown economic catastrophe. Sooner or later, someone will find out about this investment target, Mr. Luo, we need to act quickly. ”

Luo Sheng was still calm and asked, "You want to use my money to short mortgage bonds, how can you confirm that these bonds are worthless?" ”

Michael patiently replied: "I have studied the quantitative analysis, the housing market is all supported by these bad debts, this is a time bomb, I want to short sell it!" ”

Luo Sheng asked again: "How to do it?" My company also bought a property in the Bay Area, and as far as I know, the mortgage bonds don't seem to have insurance contracts or options. ”

Michael replied methodically: "Sir, that's what I'm going to do, I'm going to ask the bank to help me tailor the insurance, and then, I'll buy a credit default swap, just like the insurance of a bond, as long as the bond defaults, the credit default swap will compensate me, and the mortgage bond will definitely collapse slowly, if you give me $2.9 billion, I can bring you tens of billions of dollars in excess short-term returns." ”

Luo Sheng chewed on the food, and after a while, he said: "Quite tempting rhetoric, but there is Wall Street under your feet, why hasn't anyone noticed this?" ”

Michael laughed sarcastically: "The whole Wall Street is in a carnival moment, greedy and crazy, and they are busy selling bonds and collecting fees. ”

Luo Sheng asked again: "Are these bonds really so bad?" Is it legal? ”

Michael replied: "Nobody knows the content of the bonds, I have seen 65% of AAA mortgage bonds, but in fact, 95% of them are subprime mortgages with consumer credit ratings below 550, what happens when the market thinks the risk is too high?" Collateralized debentures can turn a housing crisis into a national economic disaster, with ripples across the United States and around the world. ”

At this point, Michael stared at Luo Sheng intently, waiting for his reply, and the latter was picking up a napkin to wipe his mouth and shake it aside.

After a while, Luo Sheng said quietly: "She is my assistant, let her play with 2.9 billion US dollars tomorrow." ”

Michael couldn't help but be stunned for a while, and after coming back to his senses, he subconsciously took a long breath, and finally showed a bright smile, and couldn't help but glance at Qin Weimu, who was sitting next to him without saying a word the whole time, and looked at Luo Sheng again, and said solemnly: "Thank you, Mr. Luo, thank you for your trust in me." ”

Soon after, Michael Barry left.

He took away the investment amount of 2.9 billion US dollars from Luo Sheng, of course, it could not be cash, this money has been prepared for a long time, and it can be remitted to the account of the heir fund the next day.

As soon as Michael Barry left, Qin Weimu looked at Luo Sheng with a smile: "You guy's acting skills are quite good, and you can't see any flaws." ”

"Versatile and wealthy." Luo Sheng smiled, and suddenly added quickly in his heart: "It's not early, why don't you stay here for one night, huh?" ”

Actually, it was just past seven o'clock in the evening.

Qin Weimu didn't bother to pay attention to him, and quickly left Luo Sheng's room, she was going to prepare the contract materials with the Inheritance Fund tomorrow.

……

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Sogou