Future chat group

"BOSS, this is the analysis report." Yaman walked in from the outside and handed a document to Lei Hao. He couldn't help but said: "The U.S. federal funds rate has fallen normally. It is now 0.7521%, a drop of 8 basis points. .”

"In other words, if Oasis Securities would be more distressed?" Lei Hao had a nasty guess about Oasis Securities.

If a basis point is 1 million, 8 is 8 million. Oasis Securities is so distressed that it can't breathe, but in fact it is impossible for them to accept such a huge amount of agreement principal.

If it changes by 0.0075%, the entire company will be lost. No one who takes more risks will place a bet. Lei Hao has long been prepared for the negotiations with Oasis Securities.

First, reject the intention other than the forward interest rate agreement, and then sign the forward agreement based on the interest rate. It may not be such a huge principal, but if it is too little... Lei Hao will still eat it in the end. No matter how small a mosquito leg is, it is still meat. .

"On May 1st, the federal funds rate quickly rose to 0.7705%. It fell by 8 basis points today on the 24th, and will still drop slightly tomorrow. In other words, starting the day after tomorrow, it rose by about 0.0180%, or 180 basis points, in a few days." Lei Hao predicted in his heart.

"The entire Oasis Securities is only worth 75 million, which means that the agreed principal of 416.6 billion will make Oasis Securities lose money."

"But it's impossible for them to sign such a large contract with a principal amount of one or two hundred billion. How about I sign some more with other people? It's better than nothing. The confirmation date is too close, which is equivalent to ultra-short-term operations. Others open a Yes, interest rates have started to change.”

"Also, unless it's a coincidence, who would use hedging contracts for huge hedging? And... this is a pure profit. My funds have not been transferred back on Keda's platform. When I signed the agreement , and we have to find a big institution to guarantee the money.”

Lei Hao was right. Before lunch, the latest intention of Oasis Securities came over.

"100 billion agreement principal, I think this contract is okay." Yaman, who had been staying in Lei Hao's office, his eyes lit up.

The principal of the agreement of 100 billion seems to be a lot, but you have to think about it. This is a forward interest rate agreement, and what everyone is hedging is the change in interest rates.

When the trading day is infinitely close to the determination date, the range of changes in the agreement interest rate and the reference interest rate is invisibly reduced.

For example, today is a trading day, and the interest rate is 0.7521%. If this interest rate is regarded as the agreed interest rate, and then tomorrow is directly regarded as the confirmation date, where can the interest rate change? Let me give you 50 basis points, which is considered a large margin, right? 0.7571%? How much profit and loss is that? Only 5 million.

With the high-risk contract that Lei Hao had thrown out earlier, and now seeing the figure of 100 billion, Arman actually felt kind and reassured, and he was also stunned.

"But we need to give up 10 basis points." Lei Hao shook his head.

"We can actually talk about interest rates falling." Leo said, "It's not difficult to smooth out 10 basis points. Give me a day and I promise to do it."

"Yeah, I can do it too." Arman almost slapped his chest and spoke.

"This is not their bottom line." Lei Hao looked at the contents of the agreement, but began to compare these data with future information in his mind, "Give them some pressure, and there will be unexpected gains."

"Don't worry, I won't use Forest's money. LEI will find Keda or HSBC as a guarantee, and Forest will not be affected." Lei Hao added.

100 billion. If the interest rate changes by 180 basis points, it means earning 18 million. For Oasis Securities, it is already a strain, but... it is not enough.

"What a lunatic." Arman complained in his heart. How could he still despise a profit and loss margin of hundreds or tens of millions of dollars? This is simply challenging everyone's nerves.

"By the way, have the stocks been cleared? According to the T+3 settlement rules of the US stock market, we cannot recover the funds until the 27th?" Lei Hao looked at Leo again and asked.

"YES, sold. LEI's CFD on the Keda platform is also being cleared. It will be around the 27th and 28th that funds can flow into the Forest account. By then... we will be an institution with a valuation of more than 200 million." Speaking of this , Leo couldn't help but burst into laughter.

Lei Hao immediately turned his gaze to Arman. Seeing the wry smile on the latter's face, he felt inexplicably happy.

Do you think the risk is too great if the profit and loss margin is millions of dollars? But we will have more than 100 million US dollars flowing in in the next few days. Therefore, Forest is not without money, but too rich. It is so rich that it needs more hedging agreements and more manpower to operate funds.

"The principal of the agreement is 300 billion, and they will agree." Lei Hao gave the definite figure, and soon Oasis Securities bargained again.

"We will not accept the postponement of the confirmed date!"

"The settlement date will not be postponed!"

"I don't accept half-year terms, I want 12-month or one-year terms!"

"Tell them that I can have a third party guarantee the cash payment, and they have to use shares as collateral!"

Rejected again and again, adjusted again and again, and quoted again and again, Lei Hao slowly gave out his bottom line.

300 billion, 180 basis points, profit and loss of 54 million. If all goes well, Oasis Securities will lose 72% of its shares. At that time... give some more money, buy the entire Oasis Securities, and merge it with Forest, LEI The roots in the US market are even deeper.

Oasis Securities and Forest are sworn enemies. Even for such a large transaction, they did not confirm their intentions in person. Only after the general direction was determined, the two parties began to send people to contact each other.

Of course, the first step is to find an insurance company to guarantee the agreement, and then verify the qualifications of both parties. Oasis Securities accepted the method of using shares as collateral. Lei Hao is relatively simple. He will have a lot of cash flow in the next few days. I asked Keda to come over and guarantee the money, and the insurance company accepted it immediately.

Throughout the whole day, Lei Hao had seen the process of off-site agreements, accumulated some experience, and also understood one thing: it was absolutely impossible for him to handle this kind of thing alone.

I was busy until the evening before I signed the agreement with the guarantee of the insurance company. After finishing the writing, I will go through some procedures tomorrow and the forward interest rate agreement will be fully established.

On the transaction date of April 25, the agreed interest rate is the U.S. federal funds rate announced on April 25, minus the equivalent amount of 1 million, and the determination date is May 1. In other words, the reference interest rate is May 1 The U.S. federal funds rate, the settlement date is May 5, and the principal amount of the agreement is 300 billion.

It can be said that except that the interest calculation time is annual interest, nothing in this agreement can be called a forward. The transaction date, confirmation date, and settlement date are almost crowded together. It is simply an over-the-counter forward. Interest rate futures agreement!

"Finally, I tricked them into signing the agreement. Although I'm a little tired, the feeling of being empty-handed... is still quite good." Looking at the various terms of the contract, Lei Hao breathed a sigh of relief and started to have some thoughts.

If a few fools from Oasis Securities come here every day, I might soon become the richest man in the world.