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 Abagnale to discuss the matter of Belford Investment Company becoming the lead underwriter of subprime financial derivatives.

It also discussed with banks such as Citigroup how to expand the real estate mortgage loan market together.

By the way, it is predicted that the real estate market will experience short-term fluctuations as oil prices fall, and will soon show an upward trend, so as to divert the banks from the negotiations with Shater Crude Oil for their own losses because they did not get any benefits. dissatisfied.

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

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

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

Moreover, it can also transfer the various risks of the subprime housing mortgage loan contract in its own hands to the stockholders through Wall Street.

Even if you don't follow up in the future, it is a good thing to recover the bad loans of your own bank first.

Besides, in the professional field, the banks are not as stupid as Li Changheng.

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

To put it bluntly, the subprime mortgage crisis is the mortgage default crisis, also known as the subprime mortgage default crisis.

In the past, everyone in the major banks hated the subprime mortgage contract, which they wished to treat as garbage, but now they are packaged by Wall Street and appear in the financial market in a grandiose manner.

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

After all, many people who take out a loan to buy a house, unless they encounter unexpected situations such as losing their jobs or getting sick.

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

Otherwise, normal people will still pay their mortgages on time.

After calculation, the combination of subprime mortgages and high-quality mortgages, without a sudden drop in housing prices, the risk is still controllable.

Moreover, it can basically control the profitability of the portfolio contract, which is higher than the bank deposit interest.

In this way, the combination contract has the basis to be bought and sold.

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

Moreover, don't overestimate the IQ of the American people, even celebrities and rich people.

Even Ponzi schemes, such as drumming and spreading flowers, can deceive countless elites.

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

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

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

Now it is not difficult to fool ordinary Americans with new financial products issued by various banks and guaranteed by insurance companies.

Even, many funds themselves will buy subprime contracts.

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

During this period, some people hinted and some people mentioned gold mines outright, but he neither denied nor expressed his opinion.

All of a sudden, many people stubbornly believed that he had already attacked the gold mine secretly.

In the midst of all the commotion, time passed quickly.

A few days later, the first batch of subprime mortgage contracts were packaged and handed over to each of their own insurance companies for underwriting, and then sent to Belford Investment Company to be sold to shareholders.

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

Although Belford Investment Company only earned 1% or 2 million commissions from the bank, it earned 1.5% or 3 million US dollars in service fees from customers.

5 million may not seem like much, but depending on the market's acceptance and popularity of subprime mortgage contracts, it is not difficult for Belford to earn 100 million, or even 200 to 300 million dollars a year.

Coupled with the fact that the investment company was worth 1 billion US dollars in the past, it should be no problem for the market value to skyrocket to 2 or 3 billion in the next six months.

After the news came back, all the banks were excitedly thinking that the real estate market might really be as Li Changheng predicted, and it would soon usher in an explosive period.

Because each bank recovers a large amount of funds through a combination of contracts, and is faced with the situation of how to use the money.

Invest in the stock market?

Crude oil futures market?

Or the gold market, or the real estate market?

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

As these funds flowed into various markets, the stock market heated up and the price of gold rose.

In addition, Shate and the major crude oil companies in the United States have released news of production cuts in a timely manner to ensure that oil prices will not fall below $10 to protect their own interests.

The price of crude oil stopped its downward trend immediately. The combination of so many reasons will inevitably lead to the recovery of the real estate market.

At this time, let alone banks, even ordinary stockholders, there will be some people who can't help but invest their funds in the real estate market.

In this way, the banks will definitely not stand by and watch others make money, but they themselves hold a large amount of funds and do nothing.

In addition, Fannie Mae, the largest housing mortgage loan guarantee institution in the United States, saw that the insurance companies under various consortiums ate all the insurance business of the first batch of subprime mortgage contracts.

Immediately, I felt that if I didn't take any action, no one else would get all the money.

The behemoth with total assets of more than 100 billion U.S. dollars, and the unicorn Fannie Mae with a policy in hand, the market quickly responded.

The stock prices of various real estate companies rose in response, and then the good news spread to the ears of ordinary shareholders, fueling the fire again.

Now, whether it is Citigroup, Morgan Stanley, Goldman Sachs and other commercial or investment banks, how can they miss the opportunity to enter the real estate market to make money.

With the emergence of a new housing mortgage loan contract ~ lightnovelpub.net ~ banks are also unable to resist, combining the contracts, selling them to Wall Street to recover the funds as soon as possible, and eating the temptation of an interest rate difference.

As a result, the subprime loan market exploded instantly.

In the past, loan restrictions such as mortgages, 50% down payment, 30% down payment, and stable employment were required. Soon, banks loosened their own bank loan policies in order to grab customers.

Even, after watching the profits of Belford Investment Company continue to rise, the market value also rose sharply.

Even Citigroup plans to discuss with Li Changheng and disqualify Belford Investment Company as the lead underwriter.

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

And it has always been the bank that exploits others, but now they are being robbed by others, isn't that a slap in the face.

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