My Age of Investment

night.

Xia Jingxing and Christina, who had just finished a fight, were lying on their sides sweating profusely on the bed, facing each other naked. The former's hand was caressing the latter's smooth skin dishonestly, crossing hills, climbing mountains, and walking grassland……

Christina giggled and twisted her body.

"What's wrong with you today? Feel like you've taken a stimulant?"

Xia Jingxing pretended to be angry, and twisted the screws of the two shiny headlights with his hands, "Drugs? Do I need drugs? If I want to take them, I will take your two drugs!"

Kristina patted Xia Jingxing's evil hand while reaching for a tissue, ready to wipe the baby's ration.

"Forget it, don't waste it!"

Xia Jingxing lowered his head and helped Christina clean up the dirty juice on her body.

"Aww~"

Hearing this sound, Xia Jingxing knew that the car was still not repaired, the engine oil might not be full, so he continued to concentrate on repairing the car.

Half an hour later, Christina began to beg for mercy, saying that the car was about to be repaired, so Xia Jingxing stopped repairing the car.

Christina was lying on her back on the bed, panting heavily, and didn't even have the strength to lift her fingers.

"Get up, don't you usually be very powerful?" Xia Jingxing looked at the motionless Christina with a smile.

"No more, I surrender!"

Hearing this, Xia Jingxing let Christina go just now, feeling in his heart that Brother Qiu's medicinal food is really nourishing, it is said to be a secret recipe of the palace, it seems that in the future he will collect more of these ancient recipes to protect the cultural heritage.

After resting for a while, Christina recovered a little strength and asked, "Are you going to leave for a while?"

"how do you know?"

Christina immediately gave him a blank look. If she wasn't about to retreat, how could she be so generous with the bullets? She has fought four battles with her tonight.

Seeing this, Xia Jingxing didn't hide anything, and talked about Envision Capital's shorting of subprime mortgages in detail. Because it was too important, he needed to go to New York to take command.

After listening, Kristina opened her mouth and said, "You shorted subprime mortgages and made billions of dollars? Did you short CDOs?"

"You still know CDO?"

Christina said unconvinced: "I am also the CEO of Facebook anyway, so naturally I should pay more attention to financial news. I heard from financial experts that CDO, a financial derivative, is quite dangerous and may lead to unpredictable and serious financial risks. .

At present, housing prices are constantly falling, and the default rate of subprime loans continues to hit new highs. Therefore, the prices of financial derivatives such as CDO and CDS, which are innovative on the basis of subprime loans, have also undergone serious fluctuations.

All the financial institutions involved in this kind of financial derivatives transactions have suffered big losses, some have seen their profits drop sharply, and some have issued loss forecasts...

The financial industry must be sad this year, basically losing money. "

Xia Jingxing smiled and said nothing. Christina's views represented the views of most people at this time. They believed that this financial risk was only limited to the financial industry, and would not spread to other industries and evolve into a global financial crisis.

To be honest, this view is also normal. After all, it is all financial companies that are complaining. One counts as one, and they all end up participating in subprime derivatives investment.

In investment, it is normal to have losses and gains!

Most ordinary people in the United States and people in other countries around the world feel that they have little to do with them. They do well in their classes and will not suffer wage cuts or layoffs.

Seeing the playfulness in Xia Jingxing's smile, Christina gave him a punch, "I didn't study finance, you even taught me securities investment. Later, although I learned venture capital and equity investment by myself, But financial derivatives trading is still too complicated, and it's normal for me not to understand it.

Do you know what to do? Tell me quickly, how exactly did you do it? "

Yang Niu was very interested in this. Before, she only knew that Xia Jingxing had pledged Facebook shares to invest in the financial market. Later, because of her father's affairs, she further learned that she was shorting subprime mortgages, but she didn't know exactly how it was done. I understand, I never asked Xia Jingxing.

Except for Facebook, she generally doesn't ask too much about her boyfriend's career.

Xia Jingxing gave Christina a brief introduction, and then said: "Let me give you a few more sets of data. The GDP of the United States last year was 13.8 trillion U.S. dollars, and the balance of housing mortgage loans was 9.8 trillion U.S. dollars, of which subprime loans accounted for 20%. %, the approximate figure is close to 2 trillion US dollars.

From 2004 to this year, more than $1.4 trillion in CDOs were issued. "

"Is there any problem with this?" Christina didn't think it was outrageous. After all, the United States is such a big country with various assets of several trillions and trillions, which is nothing more than normal.

Xia Jingxing smiled: "Of course there is no problem. CDS is not a big problem. The market size is only 62 trillion US dollars, which is more than four times the GDP of the United States."

Christina kept quiet for a while, and through Xia Jingxing's introduction, she knew that CDS was actually a contract similar to an insurance policy.

The insurance policy naturally requires premiums, but the premiums are designed after careful investigation and an estimated renewal rate/risk rate of 1%-2%.

Once there is a deviation in the estimate, the default rate does not need to be too high, it only needs 10%, and a hole of trillions of dollars can be formed, which is equivalent to half of the GDP of the United States.

terrible!

Christina sighed in her heart, will it reach or even exceed 10% default rate?

She suddenly remembered a report in the news that due to the fall in housing prices, the residual value of the house has become negative, and the mortgage that needs to be repaid has exceeded the market value of the house.

In this case, some people began to abandon the house, no longer repay the loan, and let the house be taken away by the lending institution.

Mortgage loans in the United States have no recourse, so banks have to bear the losses of these non-performing loans.

Oh, that’s wrong, the mortgages have actually been packaged as CDOs by major banks and lending institutions and sold to global investors. In fact, the banks don’t have to bear any losses, but may earn some asset price difference.

However, Bank of America is not so honest. Many banks see that CDOs seem to be quite profitable, so let's start with it.

As far as the mortgage default rate is concerned, as long as housing prices do not rise, it is absolutely impossible to reduce it, and it will only become higher and higher.

Christina stopped thinking about the extent of the impact of this financial crisis, and began to care about Xia Jingxing's financial security. She asked, "With such a large financial risk, will your investment be at risk?"

“It was still risky, but as the financial exposure from subprime mortgages got bigger and bigger, my investment became less and less risky.”

Xia Jingxing chuckled, "Unless the White House intervenes in housing prices now to prop up the housing market, it will not lose money, it will only make money, and the profits will snowball and become bigger and bigger."

Christina took a breath, "Haven't you already made billions of dollars? Won't you stop?"

Xia Jingxing said with a smile, "Where is this? The CDS contracts we hold are worth tens of billions of dollars, enough for those greedy guys to drink a pot."

"If all the money is earned, wouldn't it be possible to buy Facebook?" Christina felt that the financial market made money too fast, and thought that Facebook's valuation growth was already a miracle. Unexpectedly, it is still inferior to the speed of making money in the financial market.

Xia Jingxing smiled, but didn't answer, Facebook is nothing, and the valuation can't be used as food or money, but the money in the financial market is real.

With this profit, the world is so big, there is nowhere to go! What can't be done!

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