Chapter 164 Reverse Rate Bonds

On March 28th, a Merrill Lynch broker flew from New York to Chicago. He came here to visit Zhongshi, because Tianyu Fund's position in the US capital market was opened in Merrill Lynch's seat. In practice, these agents give full play to their professionalism and spare no effort to promote new products designed by the parent company.

  Because Tianyu Fund operates in the US market, some information and contact information of the company are public. As for information such as fund size and operating positions, it is highly confidential and must not be leaked.

When the Hong Kong side called Chicago, Zhong Shi agreed after a little consideration. This is because there are many financial products in the U.S. market, and there is a lot of room for choice. On the other hand, he is in charge of these two funds. In the future, it is inevitable to deal with the sales staff of various investment banks, participate in road shows and so on, so I deliberately chose a time to meet up.

The meeting place was chosen at a Chinese restaurant in the suburbs of Chicago. It seems that this salesman named Mike Stamenson knows how to please customers. He knows that Zhong Shi is from Hong Kong, and the business rules there are completely different from those in the United States. , Stemensen asked several Chinese colleagues before deciding to discuss the business at the dinner table.

When Zhong Shi calmly sat down in front of him and looked at him with a smile on his face, Steinmensen realized that the young man in front of him was a fund manager in charge of hundreds of millions of dollars. Surprised on his face, he stood up and shook hands with Zhong Shi, and said in a strange tone: "Hello!"

Zhong Shi and Xiaowu who followed behind him looked at each other, and they smiled knowingly. After Zhong Shi took his seat, the strong man named Xiaowu nodded to Zhong Shi, and then sat down with Zhong Shi and Steinmenson. In the middle, I picked up a chopstick and fiddled with it quickly.

Zhao Xiaowu is the bodyguard arranged by Land Rover beside Zhong Shi. After the people from Tianyu Fund left the United States, Land Rover arranged for Zhao Xiaowu, who is fluent in English, to Chicago. He used to be a member of the Hong Kong police G4. They dug him from the government department and sent him to Zhong Shi's side.

The United States is a country where guns can be legally owned. Citizens with good credit records can buy guns. Therefore, even after ordering a bulletproof car, Land Rover is still worried about the safety of Zhongshi. Sharpshooter, who followed Jong-shik when he was out.

   Don't look at Zhao Xiaowu is just playing with a chopstick now, but if Stemensen slightly violates the rules, this chopstick in his hand can restrain Stemensen in the fastest time.

Sitting at the other end of the table, Stanmensen obviously felt the pressure Zhao Xiaowu brought to him, and he couldn't stop sweating on his forehead. He regretted why he chose such a place instead of a regular negotiating place this time, but Thinking that if the deal is completed, he will have a small commission, and the little fear in his heart was suppressed again.

Seeing that everyone has arrived, the waiters in the restaurant serve the meals that have been ordered earlier, which are some common dishes such as fish-flavored pork shreds and Kung Pao chicken, but for Americans who eat beef and lettuce all day Speaking of which, this is already a great delicacy.

   "Mr. Zhong, what do you think of the current bond market?" After touting Zhong Shi, Stemensen changed the subject and asked Zhong Shi about the current trend of the bond market.

   "This..." Zhong Shi smiled, put down his chopsticks, and asked with great interest, "Why, Mr. Stanmensen has any good projects to introduce?"

Zhong Shi knows best about brokers and salesmen on Wall Street. These people will do anything for their own commissions and sales commissions, especially investment bank salesmen, who often hide a lot of liability clauses during the introduction process. Products with complex derivatives boasted as simple products, making it difficult for even seasoned fund managers to tell the difference.

Seeing that he was almost done eating, Steinmensen put down the knife and fork, lowered his head and groped in the briefcase beside him. Unexpectedly, his sudden action aroused the vigilance of Zhao Xiaowu, who had been eating and drinking by the side. He picked up the table knife that Stamensen had just put on the table, and the next moment the shiny silver knife was on Stemensen's neck.

Steinmensen only felt a chill on his neck, and then heard a deep voice, "Don't move around, slowly take your hands out of the bag." He was stunned, slowly raised his head, and saw Zhao Xiaowu holding The table knife was staring vigilantly at his outstretched hand in the briefcase.

   "Relax, relax, this is just a document." Stemensen's heart tightened, and he immediately explained. Fortunately, the United States is a country that allows guns, and he has long been familiar with this situation. As long as he makes the slightest move to misunderstand the law enforcement of the American police, he may eat a bullet. If it was in other countries, I am afraid that this agent would have been scared to death. After speaking, Stemensen slowly took his hand out of the briefcase, and what he held in his hand was a thick document.

  After the alert was lifted, Zhao Xiaowu swiped the knife and put the knife in front of Steinmensen again, then picked up the chopsticks and continued to eat and drink, as if the scene just now had never happened.

"Good skill!" Stemensen wiped the cold sweat that didn't exist on his forehead, and after admiring sincerely, he turned his attention to Zhong Shi: "Mr. Zhong, this is a product about bonds. Introduce you to the fund." Regarding the scene just now, he just mentioned a word and then kept silent.

The clients he faces are all kinds of strange, and he was even shot to the forehead once, but the profit-seeking instinct of Wall Street has been deeply settled in his blood, so he has long been familiar with the strange, and even the act of wiping cold sweat just now is pretending. from.

"Let me take a look first!" Zhong Shi nodded, then picked up the thick stack of documents, first flipped through a few pages, and then asked casually: "I can keep this for now, and I will wait until I figure it out." Is it feasible to give you another clear answer?"

Stanmensen was naturally very happy. He glanced at Zhao Xiaowu who was silent beside him, and said with some lingering fear: "This is a reverse interest rate bond contract. If you have anything you don't understand, you can ask me at any time." As he spoke, he took out a small brass box from his pocket, pulled out a light blue business card, and handed it to Zhong Shi respectfully with both hands: "This is my personal business card, you can call me anytime."

Seeing that Zhong Shi accepted the business card, Steinmensen was overjoyed, and continued: "For customers like you, we can provide leveraged funds, which can increase funds by up to 1.5 times the principal, and the commission can also be good. discuss."

  Zhong Shi nodded, then took the teacup at hand, and tasted it with gusto. The tea is not a good tea, but Zhong Shi drank it with relish. Stanmensen was taken aback for a while, and he didn't wait for Zhong Shi's next words. Seeing that Zhong Shi and Zhao Xiaowu hadn't spoken for a long time, he immediately understood, smiled and got up to say goodbye.

  He just learned a few words of Chinese before the visit, and he doesn't understand Chinese culture at all, and of course he doesn't understand the principle of "serving guests with tea". After he left, Zhao Xiaowu stretched his neck to look at the title of the document, and asked curiously, "Zhong Sheng, what kind of document is this?"

   "This..." Zhong Shi put down his teacup, knocked on the table casually, and said, "This is a reverse interest rate bond contract."

   "Reverse rate bonds?" Zhao Xiaowu scratched his head, somewhat puzzled. After all, he is not a person in this industry, and he doesn't understand these professional terms at all. "What kind of bond is that? More complicated than stocks? Than turbines?"

  Hong Kong people generally like to speculate in stocks, and they also like to speculate in turbines. Turbine is a stock warrant, a type of option, which is transliterated from warrant. From the perspective of ordinary investors, the risks of turbines are already very complicated.

"It's much more complicated than a turbo. If I'm not mistaken, this kind of inverse interest rate bond is negatively correlated with the Federal Reserve interest rate, that is, when the relevant interest rate rises, the yield of this bond falls, and when the interest rate falls, the yield It will rise, which is just the opposite of deposits."

   "There is such a thing?" Zhao Xiaowu shook his head and said with some sighs: "It's really an eye-opener!"

   "There are more eye-opening things!" Zhong Shi flipped through the document, pointed to one of the clauses and waved to Zhao Xiaowu, motioning him to come closer, "Look at this carefully!"

Zhao Xiaowu moved to the front of the document and read out the clause word by word: "When the bond matures, if the relevant interest rate falls, the contract will end here. If the relevant interest rate rises, the contract will be automatically extended for three years." After reading it, he tilted his head and thought for a while, then suddenly exclaimed strangely: "This is too unfair!"

"Fair?" Zhong Shi snorted coldly with disdain: "There is no fair thing in this world! Don't forget that Mr. Stanmensen just said that he could provide me with funds, but we still have to pay the money." Interest. If you think about it, if the interest rate rises, the financing cost of the money will rise, and the income will fall, and both will lose. If the interest rate falls, although the money may have income, they will not lose at all, except that they can get In addition to the commission, there is also this interest."

"Take the clause you just read as an example. Once the interest rate falls, the contract will end when it expires, that is, their losses will be set within a fixed range. If the interest rate rises, the contract will be automatically extended for three years. Sometimes the client, that is, my loss may be infinite, and even lose everything in the end.”

"So insidious?" Zhao Xiaowu gasped, and asked in disbelief, "I had a good impression of that person just now. After hearing what you said, I realized that there are so many ways in it. Isn't it harmful?" person!"

   "What do you think?" Zhong Shi laughed loudly, "Don't think those well-dressed agents are good things, they are definitely cannibalistic characters, just watch, there must be fools."

   The bond here is the kind of bond that went bankrupt in Orange County, Los Angeles, one of the top ten trading losses in history.

  

  

  (end of this chapter)