Chapter 622: The Great Cemetery "By the way, Tingsheng, what is the CDO" Huang Yaming suddenly asked Xu Tingsheng.
"I want to ask too."
Lao Jin said.
"You also ask this," Xiao Jinshan, who drank two glasses of red wine, looked up at his father in a daze and said, "It's English, do you understand, you can't pinyin."
Uncle Xu, let's talk about this kind of problem, let me tell you, my English tutor has a very big breast."
Lao Jin slapped him into silent mode.
"Where did you hear this," Xu Tingsheng asked rhetorically.
"There's a half-breed guy named Wayne Young, who said he knew you, and he came to us and sold us this," Huang Yaming said, "By the way, he also said that a lot of investment banks on Wall Street are doing this." ” "This bastard is really pervasive and does everything.
Fortunately, he is not an arms dealer, otherwise it would have been a world war.
Xu Tingsheng shook his head and said.
Wayne Young is probably working as a middleman for Wall Street banks, and he has also sold this to Xu Tingsheng before, and Xu Tingsheng asked him to help get Apple. didn't think about it, he even found Lao Jin and Huang Yaming.
"Then what do you say," Xu Tingsheng asked.
"I said I didn't know what the hell it was, and I never heard anyone who wanted to sell me tell me what it was.
Then let him fuck off.
Huang Yaming said, "If I ask you now, it is pure boredom and curiosity." ” "It's complicated."
Xu Tingsheng said.
"No, in fact, you don't know, ha" Xiao Jinshan, who drank too much, came back to his strength.
Xu Tingsheng followed the old gold model and slapped him into silent mode.
"It's good that the stinky fish didn't see it," Xiao Jinshan rubbed his little brain melon, and said pitifully, "Sooner or later, I will be photographed as an idiot by you." ” "Teraizeddebtobigation, or CDO for short, is something we learned in the Department of Finance.
If you want to expand it, it is indeed like Tingsheng said, it is very complicated.
Fu Cheng, who was from a professional background, interjected next to him.
Lao Jin and Huang Yaming wanted to prove with expressions that they didn't understand anything.
"That's it, I'll simplify it and tell you an example," Xu Tingsheng thought for a while and said, "You all know about housing loans, housing loans." ” "Nonsense.
These days, you ask an eighty-year-old lady to know.
Lao Jin said.
"I thought you local tyrants didn't need it, you wouldn't know about this", Xu Tingsheng said with a smile, "What about the mortgage, including the unpaid principal and interest of the house itself, the general amount is not small, and the cycle is relatively long."
And then in general, the house itself is collateral. ” "Now, let's say I'm a bank."
Xu Tingsheng pointed to himself, and then said: "Then, Lao Jin bought a house today and applied for a housing loan with me, with a cycle of thirty years.
As a bank, I have money to make, but I think the recovery of funds is too slow.
In order to recover the funds quickly, he took out his mortgage to make mortgage securities, and then found some institutional guarantees and then took them out and sold them.
This is the CDO, which is a mortgage-backed debt security. ” "Oh."
Huang Yaming said.
"Do you buy it and share the proceeds with the bank?"
Xu Tingsheng asked him.
"If you have money to spare, no problem.
Anyway, you don't lose money.
Old Jin, will he not be able to pay off the mortgage?"
Huang Yaming responded cheerfully.
"That's right, if you know that this person is a local tyrant like Lao Jin, I think many people will be willing to buy it.
But I, the bank, will be so honest and suffer losses, I will not sell alone, I will sell in a packaged way, such as packing a hundred mortgages at a time, some of which are local tyrant bosses like Lao Jin, some are doing small businesses, some are teachers, civil servants, in short, I take the housing loans of all walks of life and all kinds of people as the basis, make a CDO, price it in several levels, and then take it out and sell it.
Do you still buy it?"
Xu Tingsheng looked at Huang Yaming and asked with a smile.
"Is the benefit big?"
asked Huang Yaming.
"The higher the risk, the greater the return.
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Of course, it doesn't seem so bad at the moment, at least in the United States, it's really popular right now.
Xu Tingsheng said.
"Under what circumstances will I lose" "Among those who take out loans to buy houses, there are a large number of people who default on their payments.
And the bank has to take back the house and can't sell it. ” "You mean, a lot of people don't want their houses" "Don't.
Not only did I lose the house, but I also didn't want the down payment I had paid before, and I didn't want the money I had paid back. ” "Then I'll rest assured," Huang Yaming said, "buy it, you can buy it." ” "Why," Xu Tingsheng continued to ask.
Huang Yaming glanced at him, and had the meaning of asking more, but still explained: "I don't know about the things in the United States, anyway, take our situation in China as an example, housing prices are rising among the hundreds of people, and I have never seen a single one who is willing to cut off the supply and the house is gone." ” "It seems to be the case, in fact, the situation in the United States is similar now, the government has lowered interest rates to encourage home purchases, and the real estate market is very hot."
Xu Tingsheng said: "But have you ever thought that if someone has to cut off his supply because of unemployment and bankruptcy, although he is reluctant, he still has to give up his house?"
"Even if there is, one or two, it won't lose anything, and besides, the bank can still take back the house and sell it."
Huang Yaming said: "In business, if there is no risk, it is already considered a small risk. ” "Then what you mean is, you buy it," Xu Tingsheng asked again.
Huang Yaming was a little creepy by his question, and hesitated to ask Fu Cheng: "Professional, what do you think?"
Fu Cheng thought for a while and said, "At present, I think 90% of people think the same way as you.
Including me. ” "Then buy it, who are you scaring about" Huang Yaming said, "Anyway, now is an example, when you really want to buy it, you have to make the idea." ” Xu Tingsheng smiled reluctantly, this idea is not easy to take.
"In this way, let me tell you another thing, it is the opposite of CDO, under normal circumstances, if there is no artificial false intervention, CDO rises, it falls, CDO falls, it rises."
Xu Tingsheng said.
"What is it?"
asked Huang Yaming.
"CDS, Credit Default Swap.
It is generally used as a hedge to avoid risks, or " "Or what" "Short." ", how to play" Xu Tingsheng thought for a moment and said to Huang Yaming: "In that case, let's continue the example just now."
Now that you've gotten on, you've bought a lot of CDOs. ” "Well, then what" "Then, for example, Xiao Jinshan", Xu Tingsheng pointed to Xiao Jinshan lying on the table and said, "Xiao Jinshan now thinks that the CDO in your hand will become a pile of waste paper, so he decided to short you." ” "That's because he's drunk, or he's been shot stupid by you."
Huang Yaming said with a smile.
"Okay, anyway, he just thinks that the CDO in your hand will become a pile of waste paper now, and decides to short you, so he will go to a bank or insurance agency to buy an insurance for your CDO.
This insurance is what I just said about CDS. ” "What's the situation," Huang Yaming said, "I'm confused."
Why did he buy insurance for me and who is the beneficiary?"
"Good question.
If it is the insurance industry that we are usually in contact with, for example, if you suddenly go to the insurance company now, and you want to buy a personal accident insurance for the son of Li Er, the school guard, you pay the money, and then the beneficiary is you, which is not allowed.
Xu Tingsheng said.
"Nonsense, if this is allowed, it won't be a big mess in the world, buy one, kill one.
Buy one, kill one.
It's not my own anyway.
Lao Jin interjected.
"Yes, but as soon as I said this CDS, it allowed it.
Xiao Jinshan buys insurance for the CDO in your hand, and he pays the handling fee and annual premium.
If the CDO in your hand becomes waste paper, you will lose money to banks and insurance institutions, and you will lose his money.
Xu Tingsheng said.
"Then what about me?"
"No compensation.
It's none of your business. ” "Then at least go through me," Huang Yaming asked.
"Not at all."
Xu Tingsheng said.
"I'm the one who went to play here, but it has nothing to do with me."
That's what it means.
He doesn't even need to know you.
The only connection between the two of you is that life and death are completely opposite.
You lose and die, and he earns and dies.
You earn and die, and he loses and dies. ” "Don't make a fuss, according to you, it's not insurance at all, it's" "What do you say?"
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"Gambling."
"BGO, that's right."
Xu Tingsheng took a deep breath, "This is a gamble, and it is a super gamble that can be expanded infinitely."
He can not only bet on you, but also on Zhang San, Li Si, Wang Er Mazi, bet on anyone as long as there is a bank or insurance institution willing to sell, as long as he has the money to pay the premium, he can even bet on the entire Wall Street. ” After Xu Tingsheng finished speaking, his eyes looked around at everyone on the table, and it was cold as if he was really about to bet on a big bet of the century.
"How much does that cost," Lao Jin seemed interested.
"CDS, which comes with 10 to 20 times leverage.
That is to say, because in terms of cash payment, you only need to pay a few percent of the annual premium, so if you have a billion in your hand, you are bold enough, and the judgment cycle is short enough, you can bet on 10 billion, 20 billion in the hands of others.
The problem is that your bankroll has to last until the day you win.
Also, the bank or insurance institution that sold you CDS can't go bankrupt, and if it does, it's useless for you to win.
No one loses money to you. ” After Xu Tingsheng finished speaking, he poured himself a glass of wine, raised his head and killed it.
Lao Jin looked at him, suddenly smiled and said, "You are excited." ” "Yes, isn't it an example" Fu Cheng also looked at Xu Tingsheng.
"Damn, you won't want to come to the real thing," Huang Yaming stood up and said, "Don't make trouble, let's make good money now, don't play so exciting."
Okay, let's not buy CDO, CDS, and we don't buy whoever we love, let's make money by ourselves. ” Xu Tingsheng thought about it and nodded.
"Let's be serious, Tingsheng, don't scare me", Huang Yaming was still not at ease, and continued, "I understand what you mean.
Don't bully me for not studying hard in college, I also studied history seriously in high school, cds really wants to say that winning method, winning so big, unless" "Unless what," Xu Tingsheng asked.
"The economic crisis," Huang Yaming said.
Xu Tingsheng smiled brightly.
"I'm talking about it.
I don't like to gamble in my life, and you don't know it.
I don't even know mahjong. ” In fact, Xu Tingsheng was really hesitant and ready to move.
He knew that Zhou Yuandai wouldn't give himself too much time.
And her assets are too rich, and her strength is really too strong, just revealing the tip of the iceberg of soft gold, under normal circumstances, it is enough for Xu Tingsheng to gnaw on it for several years.
And a pit like Saipan, no matter how deep Zhou Yuandai falls into it, it is just an itch in his boots.
She had plenty of room to turn around.
Xu Tingsheng was afraid that he would not have the opportunity to develop slowly, and he did not dare to hope that Zhou Yuandai would suddenly be kind enough to let him go His only chance, perhaps only once, is to set up an earth-shattering situation, dig a super big pit, a big pit where ants can bury the elephant, and bury her all at once.
Xu Tingsheng wants to find a super graveyard for Zhou Yuandai, for example, the subprime mortgage crisis, Wall Street.
However, how difficult it is for her to enter the game completely and not be recognized.
Many things are often written deeply, and they will be scolded and made up randomly.
Regarding the 2008 U.S. subprime mortgage crisis, CDO, and CDS, I have tried to introduce them in the most concise and clear way, and as for the intention, everyone can naturally see it.
Of course, this also makes my statement inaccurate and even wrong.
There are a lot of people who know more than me in book friends.,Please don't mind.,In addition, it's as white as me.,Let's roughly understand it.,You can look back at the short tool CDS paragraph.。
Or if you look up the subprime mortgage crisis in '08, how did the bears short the US housing market.
This CDS is one of the most important tools.
Also, our national CDS seems to have been released, of course, the brothers can't really gamble: