While waiting for Cao Yanjun and Yan Tong to inquire about the exact news of the gold mine, Li Changheng spent a few days not only meeting with Frank Abanel to discuss Belford Investments and becoming the lead underwriter of subprime financial derivatives.

Also discussed with Citigroup and other banks on how to expand the real estate mortgage market together.

By the way, it is predicted that the real estate market will experience a short-term period of volatility as oil prices fall, and it will soon show an upward trend, to transfer the banks in this negotiation with Saudi Crude Oil, because they did not get the benefits. dissatisfied.

Some people will believe it, and some will believe it after a little thought.

Moreover, banks are still willing to pack their existing subprime mortgage contracts and transfer the risk to shareholders.

The reason is very simple. The overall profitability of the packaged new financial products is much higher than those of only high-quality mortgages.

And it can transfer all the risks that exist in the subprime mortgage loan contract in his hand to stock investors through Wall Street.

Even if you do not follow up in the future, it is a good thing to get back your own bank's non-performing loans first.

Besides, in the professional field, the banks are no more stupid than Li Changheng.

Even in terms of specific operations, they are far more experienced than Li Changheng. The only thing that restricts them is their ability to innovate.

To put it plainly, the subprime mortgage crisis is the mortgage default crisis, also called the subprime mortgage default crisis.

In the past, every major bank disliked it and wanted to give others subprime mortgage contracts like rubbish. Now it has been packaged by Wall Street and appeared in the financial market.

The risk of subprime mortgages is high, but not all contracts have the risk of default.

After all, many people who borrow money to buy a house, unless they encounter unexpected situations such as loss of work or illness.

Or the overall house price plummeted. It is clear that the house was worth 1 million US dollars a month before but only 700,000 dollars a month later, so the risk of default is indeed high.

Otherwise, normal people will still repay the mortgage on time.

After calculation, a combination of subprime mortgages and high-quality mortgages can manage the risk without experiencing a sudden drop in housing prices.

And it can basically control the profitability of the portfolio contract, which is higher than the interest on bank deposits.

In this way, the combined contract has a basis for being bought and sold.

This is the same as financial management, as long as the interest rate is higher than bank deposits, even if you have to take some risks, some people are still willing to buy.

Also, don't look too high at the IQs of American people, even celebrities and wealthy people.

Even the Ponzi scheme, which uses drums to spread flowers, can deceive countless elites.

Of course, there are reasons for the high status and influence of the mastermind of the scam.

But for the well-known Wall Street investment companies, for ordinary shareholders, there are also reasons to believe in these vampires.

The sales elites of Belford Investment Company can sell even junk stocks, and they are selling very well.

Now that we get new financial products issued by various banks and guaranteed by insurance companies, it is really not difficult to fool ordinary Americans.

Moreover, many funds will purchase subprime mortgage contracts themselves.

Therefore, it took Li Changheng three days to complete the communication with various banks.

During this period, some people hinted and some people mentioned the gold mine altogether, but he neither denied it nor expressed his opinion.

Suddenly, many people stubbornly thought that he had already attacked the gold mine in secret.

Time flies quickly.

A few days later, the first batch of loan contracts were packaged up, handed over to each insurance company to underwrite, and then sent to Belford Investment Company to sell to shareholders.

In just two days, these combined contracts worth 200 million US dollars were almost sold.

Although Belford Investments only earned 1% or 2 million in commission from the bank, it earned 1.5% or 3 million in service fees from customers.

5 million may not seem like a lot, but depending on the market's acceptance and welcome of subprime mortgage contracts, Belford earns 100 million a year, or even two to three billion dollars.

Coupled with the investment company's previous value of 1 billion U.S. dollars, it should be no problem for the market value to soar to 2 or 3 billion in the next six months.

After the news came back, the banks thought with excitement that the real estate market might really be the same as Li Changheng had predicted, and it would soon usher in an outbreak period.

This is because after banks have recovered a large amount of funds through combination contracts, they are faced with the situation of how to use the money.

Invest in the stock market?

Crude oil futures market?

Or is it the gold market, or the real estate market?

The result is very simple. Of course, you can invest in any market where you think you can make money.

As these funds enter various markets, the stock market heats up and the price of gold rises.

In addition, Saudi Arabia and the major crude oil companies in the United States have released news about production cuts in a timely manner to ensure that oil prices will not drop below 10 US dollars to safeguard their own interests.

Crude oil prices immediately stopped the downward trend. The combination of so many reasons will inevitably lead to a recovery in the real estate market.

At this time, let alone banks, even among ordinary investors ~lightnovelpub.net~, some people can't help but invest their funds into the housing market.

In this way, banks will certainly not just watch others make money, but do nothing with their large amounts of funds.

In addition, Fannie Mae, the largest mortgage guarantee agency in the United States, saw insurance companies under various consortiums and had eaten up all the insurance business of the first batch of loan contracts.

Immediately, I felt that if I didn't take any action, no one else would have made any money.

The behemoth with all assets of more than 100 billion U.S. dollars and the unicorn with policy-handling Fannie Mae moved, the market quickly responded.

The share prices of various real estate companies rose accordingly, and then the good news spread to the ears of ordinary shareholders, which added another fire.

Now, whether it is Citigroup, Morgan Stanley, Goldman Sachs and other commercial or investment banks, how will they let go of the opportunity to enter the housing market to make money.

With the emergence of new mortgage loan contracts, banks are also unable to resist, combine the contracts and sell them to Wall Street to recover the funds as soon as possible, and eat the temptation of an interest differential.

As a result, the subprime loan market instantly became hot.

In the past, loan restrictions such as mortgages, down payments of 50%, 30%, stable jobs, etc. were required. Soon, in order to grab customers, banks loosened their own bank's loan policies a little bit.

Even after watching the profit of Belford Investment Company continue to rise, the market value has also risen.

Even Citigroup intends to discuss with Li Changheng and cancel the qualification of the lead underwriter of the Belford Investment Company.

After all, although various banks are also eating meat, 70% of the contracts are given to Belford Investment Company, which is equal to their own profits, which is not as high as that of a medium-sized investment company.

Moreover, banks have always exploited others, but now they have been stabbed with wool. Isn't this a slap in the face?

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