Junk bonds aren't actually junk.

Its essence is no different from ordinary bonds, the difference is that the credit rating of the company issuing junk bonds is relatively low, and the investment risk of investors is greater.

To attract investment, these companies use high interest rates as bait.

To put it simply, it is high risk and high interest rate.

So, junk bonds have another name: "high-risk bonds".

Milken wasn't the inventor of junk bonds, but he took them to the highest level because he created new rules of the game.

In 1974, inflation and unemployment were rising, and credit was severely tightened.

All of a sudden, the high-return bonds in the portfolios of many fund houses were downgraded by bond rating companies and reduced to "junk bonds", which in the eyes of investors became garbage that could not bring any returns.

Many fund companies are eager to sell low-grade bonds in their hands, so as not to affect the quality image of the fund.

All this, at the age of twenty-five, Milken was completely turned upside down.

Because he was keenly aware that after World War II, the beautiful country gradually improved many regulatory measures aimed at protecting investors from losses due to corporate bankruptcy or defaulting on debts, large companies were not allowed to go bankrupt, and their stocks would not stop trading.

Therefore, the lower the credit rating of the bond, the higher the return for investors after default.

In his view, risk and income are equal, and the greater the risk, the greater the benefit.

As long as the outlook for the company is good enough, these bonds can be bought out.

Milken proved right, and the "junk bonds" he recommended yielded 50 percent a year.

In just six years, the company has created a market size of $40 billion and has become a monopolist of "junk bonds" in the United States.

By the late '70s, under Milken's leadership, investors who had not seen junk bonds had become crazy snappers.

Junk bonds are very popular, but the quantity is limited, and it can no longer satisfy the purchase desire of fund companies.

Milken took the initiative to issue junk bonds for small companies to acquire large companies, because large companies are usually reputable, and small companies can use the assets and future cash flow of large companies as a guarantee to repay debts.

"One Sword Alone"

In the decade from 1977 to 1987, Milken raised $93 billion.

Of course, this is a direct issue issued by him for others, not an underwriting, in fact, more underwriting.

His company's share of the "junk bond" market grew to $200 billion.

By this time, Milken had become a real "junk bond king", and the corporate bond trading department had become a beautiful national low-grade bond market in the full sense of the word.

Milken, while not the mastermind of the hostile takeover, was an important driver of these activities.

It was he who indirectly contributed to the M&A boom of the 80s by issuing junk bonds, supporting the growth of small companies, and using the "leveraged buyout" model.

Dechong Securities is an investment bank.

In the reception room, Ji Cheng sat on the sofa and looked at the financial godfather in front of him, who is currently calling for wind and rain in the financial circles of a beautiful country, has a pivotal position, and is unmatched.

Mielke. Milken!

This man is in his forties, with a grim face, and he is not a good person at first glance.

If so, it's not possible to know Michael. How "bad" is Milken, so I believe that people who have watched the movie "Wall Street" released in 1987 will definitely have a good understanding of the villain Gordon. Geko remembers it vividly, and Gordon. Gaiko's prototype was none other than the man sitting in front of him.

In fact, Milken's work in the financial world of the beautiful country is even more powerful than in the movies.

You can imagine how "bad" it is.

After looking at it for a long time, Ji Cheng said in a surging voice: "I need money." ”

Sitting next to her was Ms. Micken Bonds, who was drinking coffee with her head down, before she and Peter. Peterson and others have been in contact with Ji Cheng since they met Ji Cheng together, and the relationship is relatively good, especially after Ji Cheng successfully shorted the yen and the West German mark, that small circle is almost headed by Ji Cheng, and today she was entrusted by Ji Cheng to come together to persuade Milken to issue junk bonds for Ji Cheng.

Mielke. Milken barely hesitated, "How much do you need?" ”

Ji Cheng picked up the cigar that Milken's beautiful assistant lit for himself and took a puff, but he didn't inhale it in his lungs, and said while spitting out the cigarette: "Four billion US dollars." ”

He asked for so much money that the person in charge of any financial institution would be a little surprised when he heard it.

But Milken looked calm and straightened the tie knot, and then said, "Four billion dollars is fine, but I want to know what you want this money for." ”

Ji Cheng looked up at the assistant who was serving him tea and water, and then looked at Rowling next to him, "I want to buy Columbia Pictures, and I don't have any money on hand." ”

He didn't even say anything about Ms. Rowling before, only that he needed money and needed to find a way to find Milken.

Sure enough, Ms. Rowling was surprised when she heard this, and suddenly looked up at Ji Cheng, who was staring at him.

On the contrary, Milken's beautiful assistant seems to be commonplace and does not react.

Milken's reaction was different, he seemed to be interested, and his movements were three points slower than the cigar, "Oh? Tell me more about the acquisition plan. ”

Ji Cheng said with a smile: "There is no acquisition plan, I have negotiated with Columbia Pictures and Coca-Cola, the largest shareholder, at a purchase price of $20 per share, about $2.5 billion, and I will inherit 1.6 billion debts, a total of $4.1 billion." ”

Milken was stunned for a moment, "You negotiated with Columbia Pictures and Coca-Cola?" ”

Ji Cheng snorted, "It's almost time to confirm the funds and officially issue an offer." ”

Milken showed a strange expression, "Since you have already negotiated, and the other party is willing to sell the company to you, it stands to reason that there is no problem in finding any investment bank for a loan, why do you want to ask me for money?" ”

Ji Cheng looked over calmly and put down the cigar in his hand, "Because I don't want to startle the snake before the official offer." ”

Before the offer was issued, Ji Cheng needed to acquire a sufficient proportion of the ordinary tradable shares, and when he had a certain proportion of the tradable shares, he could get the shares from the shareholders of Columbia Pictures, and then he could forcibly acquire all the shares in the market and complete the tender offer process in one step.

If you only buy a certain percentage of the outstanding shares first, but make an offer before the funds are available, and then buy the rest, it will inevitably involve other capital, and you will have to spend more money at that time.

Generally speaking, if an investor makes a tender offer and another investor makes a more competitive offer, a competitive offer will be formed, and then the two parties will inevitably form a financial war in order to achieve the purpose of the acquisition.

Milken understood as soon as he heard it, "I am very interested in your acquisition plan, and I am willing to help you raise money, but there is one thing that needs to be explained in advance, the underwriting fee for me to help you underwrite high-risk bonds is not cheap, it needs 1.2 percent, in addition, the interest rate of high-risk bonds is too low and no one is willing to buy, the general interest rate is more than 6.5 percent, and the term is between three and six years, the most important point is that I will issue you a high-interest high-interest high-risk bond with an underwriting of 4.1 billion US dollars if you need 4.1 billion US dollars, Instead, you need to calculate the interest for the next few years, and take that money into account as well. ”

With an annual interest rate of 6.5 percent, even a three-year bond with a maturity of $4.1 billion would cost almost $800 million, and a commission of 1.2 percent would cost almost $50 million, adding up to $850 million.

And the 850 million yuan will require interest, and Ji Cheng expects that if he raises 4.1 billion US dollars, he will eventually issue 5.3 billion US dollars, and the extra money will pay interest and the commission required by Milken every year, and then return the principal after maturity.

If ordinary people heard that they would have to pay almost 1.2 billion more, they would definitely be so frightened that they immediately retreated.

Ji Cheng said without hesitation: "No problem, I will leave it to you to operate, I just need to get the money." ”

Why did he promise so much?

Because he didn't want to pay for this money at all!

Isn't Sony determined to buy Columbia Pictures? And according to memory, Sony did come up with six billion dollars to settle it.

That's still the value of the underperforming Columbia Pictures.

Ji Cheng pondered that if he made Columbia Pictures' performance prosperous, it shouldn't be too much of a problem to let Sony spend an extra billion dollars, so he agreed so simply.

If it were an ordinary film company, he really wouldn't dare to play like this, after all, the average film company only has the ability to produce or distribute, and does not have its own theater chain, but Columbia Pictures has 820 movie theaters, and it is not afraid of the constraints of the theater chain at all.

It can produce films, it can be distributed, and it has a huge number of movie theaters.

In addition, Ji Cheng can plagiarize countless high-grossing classic movies from the side of modern society.

If under the premise of such a huge advantage, there is no way to make Columbia Pictures prosperous, it can only be said that he is really incompetent and deserves to be dragged to death by funds.

Milken laughed, obviously very happy about making such a big deal, "Okay, when do you need money?" ”

Ji Chengdao: "I want it now." ”

Milken hummed and bowed slightly: "The preparation period for the issuance of bonds is about two and a half months, to be safe, three months, that is, I will first get a bridge loan of $4.1 billion from other banks for you, and after the bonds are issued, you can return the money." ”

Ji Cheng was stunned for a moment, "Doesn't there need a sales cycle after the release?" ”

"Huh." Ms. Rowling, who was sitting next to her, laughed.

Milken also laughed and said nothing.

I'm going to ask about the cost of the season.

Ms. Rowling explained: "You may not know how influential Mielke is in the high-interest and high-risk bond industry, the bonds he underwrites have a reputation for high yield, low risk, and all products are basically second on the issue date. She didn't mean the rating of the bond itself, but the trust of the people.

Ji Cheng knew that Milken was powerful, but he didn't expect it to be so powerful, he sincerely admired: "Milken, you have too much influence in the high-risk and high-interest rate bond industry. ”

Milken smiled, neither modest nor arrogant, "Okay. After a pause, he continued: "Are you going to issue corporate bonds with Huajin Capital, or are you going to re-establish a wholly owned subsidiary of Huajin Capital to issue corporate bonds?" ”

Ji Cheng was stunned for a moment, "Is there any difference?" ”

Milken said meaningfully: "If you can't pay this money in the future, setting up a subsidiary to issue corporate bonds will not affect Huajin Capital." ”

This time Ji Cheng understood!

That is to say, if he does not pay the money in the future, the subsidiary will go bankrupt, and Huajin Capital will still be the same in the future, but if the company bonds are issued in the name of Huajin Capital and the money is not paid when the bonds expire, Huajin Capital has only one way to accept bankruptcy liquidation.

Of course, if the subsidiary goes bankrupt, it will not implicate ordinary people who buy bonds.

Because according to the current law of the beautiful country, companies of this level are not allowed to go bankrupt, even if you file for bankruptcy, the government of the beautiful country will help you find the next home to carry out asset restructuring, and there is really no government to take over, that is, ordinary people who buy bonds can still get the money in the end, it is only a matter of time.

You're a little too bad!

Specifically staring at the government of the beautiful country, it is no wonder that he was later prosecuted, and was even sentenced to no longer be allowed to engage in any work in securities.

Ji Chengdao: "Okay, then I will immediately ask people to register a wholly-owned subsidiary after I go back, and then when will I issue bonds?" ”

"I'll wait until I buy Columbia Pictures before I release it." Milken said and stood up, "Now you go with me to the investment bank to raise funds." ”

Ji Cheng didn't expect Milken to be so resolute, so he immediately stood up, and reminded, "I've been fighting against a very powerful opponent recently, and his strength is enough to affect many financial institutions in beautiful countries, let's go to other investment banks, and it won't leak the news to affect my offer, right?" ”

"If someone else comes forward, there may be this possibility, but ......" Milken, who had just walked to the door, looked back at Ji Cheng and said confidently: "I come forward, even if your competitors are the Morgan family and the Rockefeller family, it is impossible to get any information!" Those banks don't dare! Otherwise...... They don't want to make huge commissions from me in the future, you tell me who your opponent is now, and I can avoid all the investment banks that have a direct relationship with him, and I guarantee that there will be no leaks. ”

Ms. Rowling was also interested.

Ji Cheng's only hope now is that Milken can help him, and he has nothing to hide: "It's the Rockefeller family!" ”

Ms. Rowling was shocked!

Milken chuckled, "Okay, just avoid them!" ”

Ji Cheng hurriedly asked, "Then which investment bank should we find?" ”

Milken seemed to have a plan, and said, "Lehman Brothers! ”

Ji Cheng was puzzled: "Why don't you find Morgan Bank?" Aren't they stronger? ”

"It's a pity that they are not Jews, and they are united against the Jewish consortium, and Morgan and Rockefeller are in the same line." Milken chuckled, "The Morgan family and the Rockefeller family used to be supported by the Rothschild family, but unfortunately, neither family has Jewish ancestry, so after getting rid of the Rothschild family by chance, the two families joined forces to start fighting against the Rothschilds, although in the beautiful country they are ostensibly competitive, for example, the two ruling parties have their respective families behind them, but their relationship is not only competition, but also supports each other, If we go to Morgan Bank, your trade secrets will inevitably reach the Rockefeller family, and the founder of Lehman Brothers, like me, is a Jew and can be trusted. ”

Although Ji Cheng doesn't like Jews, if he really does what Milken said, he really can't trust those consortiums other than Jews in the beautiful country, because the West hates Jews, especially the Morgan family and Rockefeller were once controlled by the Rothschilds, and now they will join forces to resist the Jewish consortium.

For example, Lehman Brothers, which Milken said, although it went bankrupt in 08 because of the subprime mortgage crisis, actually has the shadow of the joint crackdown of the Morgan family and the Rockefeller family behind it.

This can be seen from the lawsuit filed against Motoman Chase after the bankruptcy of Lehman Brothers, which was the main clearing house of Lehman Brothers and played an intermediary role between Lehman Brothers and its counterparties.

As an intermediary, M&C is obligated to require Lehman Brothers to provide collateral, i.e., securities that are easy to sell, to protect the client's loan position in Lehman Brothers.

In the complaint, Lehman claimed that Motoman Chase used its status as a clearing bank to force Lehman Brothers to provide excessive collateral by not providing vital clearing services after learning that Lehman Brothers' operating capacity was rapidly declining, resulting in a shortage of liquidity and eventual bankruptcy.

The "financial pistol" of Mo-GM was able to force Lehman Brothers to sign the 'overlord clause' in a short period of time, and the legal owner of the billions of dollars of collateral belonged to Lehman Brothers and its creditors.

In fact, this is the real reason for the collapse of Lehman Brothers in '08.

In addition, next year Milken will be convicted and imprisoned, and will no longer be allowed to engage in securities, which is also dominated by the Mohee family and the Rockefeller family, because Milken is Jewish, and he is not liked by these two families, plus Milken has made money for countless small and medium-sized enterprises to stage a snake swallowing elephant to buy large enterprises, which has damaged the core interests of these two behemoth families.

Therefore, now Ji Cheng wants to do things by himself and borrow money that is not known to the Rockefeller family, so he can only get money from the Jews.

Ji Cheng really didn't know these things before, because these things can't be known by searching the Internet.

He never thought that he would accidentally get this kind of inside information when he asked Milken to make money, excluding information that it might be a partner of the Rockefeller family!

Ji Cheng took a deep breath and secretly wrote down all this information.

At the same time, his heart began to become hot again, as long as he followed Milken to Lehman Brothers, his financial problems could be solved!

He originally thought that he would have to convince Milken hard to get the money, but he didn't expect it to be so simple in the end.

However, Ji Cheng knew what the reason was, that is, there were two main reasons why Milken agreed so neatly.

First, you can earn a large amount of commissions.

Second, Ji Cheng has already acquired Columbia Pictures on a certain level, but the funds are not in place.

With the existence of Columbia Pictures, Milken underwrites junk bonds for Ji Cheng, which will definitely arouse the interest of customers, and when the time comes, it will be another brilliant achievement!