Chapter 812 Seoul Summit (5)

  This is a serious matter. Kevin McDonald had no intention of staying in Seoul, so he flew directly to Dublin overnight with the agreement.

  From the appearance of the President of the United States to the participation of representatives of the British government in the talks, all these signs show that these two things are the joint efforts of both parties. For a tiny Ireland, the pressure is hard to resist. Now before them is a question of standing in line.

   Not to mention the reaction from Ireland, just the remarks made by the female chancellor of Germany quickly set off a storm in the market.

  As the core head of state in the euro zone, the remarks of the female prime minister at least to a certain extent represent the views within the EU. If the final rescue plan is carried out as she said, then private investors holding Irish banking industry and even national debt may suffer huge losses, because debt restructuring will inevitably have some write-offs.

   Moreover, with the EU's rescue, whether the crisis will spread to other countries is also a question on everyone's mind.

  Based on the two-pronged approach, the market immediately responded by selling various Irish bonds in the market as much as possible, and at the same time buying CDS to hedge.

  Ireland's 10-year government bond yield broke through 9% not long after Merkel's speech, which was so high that it made people outrageous. However, all this is not the end, and soon it will go straight to 10% in the intraday.

  If it wants to break through 10%, this figure means that according to the current market yield, if the Irish government wants to issue a new ten-year bond, due to time constraints, it will only be able to raise half of the funds on the note. That is, if they want to raise 10 billion euros of funds in the long run, they will need to issue about 20 billion euros of bonds to raise enough.

   This number is very scary.

Fortunately, despite the irrational panic in the market, some institutions still chose to take advantage of the fire and bought Irish government bonds in large quantities in the market. Their bet was that the G20 summit would not turn a blind eye to this, which also avoided On this day, Ireland broke through 10%, becoming the first high-yield government bond in history.

   Even if it doesn’t break through 10%, the national debt of more than 9% makes it impossible for the Irish government to issue new bonds in the international market, because the pressure to raise funds is too great for them to bear.

   At the same time, the bonds of Spain, Portugal, Greece and other countries have also been sold to varying degrees. This is related to the second worry above. Investors fear that the bond crisis will once again spread to Europe.

  But Zhong Shi is not clear about all this for the time being. After participating in the three-party talks, he was invited to the Korea Development Bank by Min Yusheng's people before he returned to the hotel.

  Korea Development Bank is also located in Yeouido, close to the National Assembly of Korea. It is a boxy and featureless building. Because they are state-owned banks, they are not as ostentatious as other financial institutions.

   After respectfully inviting Zhong Shi into his president's office, Min Yusheng slammed the door shut, and began to communicate humbly and seriously.

   "Mr. Zhong, how likely do you think there is a problem with the Irish government?"

  Min Yusheng wiped the sweat from his forehead, and asked palely, "There will be no outsiders involved in this meeting. I want to hear your truth."

  Because Tianyu Fund holds a part of the Korea Development Bank shares, Min Yusheng and Zhongshi are also agents and owners to a certain extent. However, because the major shareholder is the South Korean government, Min Yusheng actually represents the South Korean government.

   "What, is something wrong?"

  Zhong Shi is a little confused, but he can imagine how the market will react to Merkel's remarks. Seeing Min Yusheng lost his composure, he guessed a bit.

   "Why, you don't know yet?"

Min Yusheng seemed very surprised by Zhong Shi's question. After scanning Zhong Shi's face several times with suspicious eyes, he said with a wry smile, "Mr. Zhong, it's very time now, stop joking. Yields on Irish government bonds have topped 10%.”

   "10%?"

  Zhong Shi was also taken aback, and asked repeatedly, "Has it already broken through 10%? This is really terrible!"

  Looking at Zhong Shi speechlessly, Min Yusheng didn't know what to say for a while. He knew very well that this crisis was provoked by Zhong Shi and his group. Although they definitely did not create the situation today, he knew very well that Zhong Shi and others were playing a very big conspiracy.

   "How much Irish national debt do you hold on hand?"

  Looking at Min Yusheng's eyes, Zhong Shi realized something, and stopped avoiding the flickering with him, and asked straight to the point, "Including five-year and ten-year national bonds, how much does the Industrial Bank hold in total?"

   "About 15 billion euros!"

  Min Yusheng replied without thinking, but the next moment he realized something, hesitated for a while, and then said, "Actually, some of them are not our positions, but BOK's assets."

  BOK, the Bank of Korea, the central bank of South Korea.

   Logically speaking, BOK belongs to the Central Bank of Korea and not to private investors. Even if the European Union restructures Ireland’s debt in the future, they will still be able to get their own part. But the problem now is that even if the due principal and interest can be obtained in the future, this part of the assets is the trading position of BOK, which means that they cannot be held until maturity.

   This is why Min Yusheng is so anxious.

"so much?"

  Zhong Shi frowned involuntarily, "This number is quite large, why do you hold so many positions?"

   Indeed, compared with the bonds of other countries, the scope of circulation of Irish bonds is mainly concentrated in the European banking industry, and the tentacles of the Asian banking industry rarely extend there. Now that BOK and the Korea Development Bank hold so many positions, it has to be said that this is a strange thing.

   "Because foreign exchange reserves need to be diversified!"

   Min Yusheng solved Jong-seok's contradiction with one sentence.

  In recent years, due to the vigorous development of South Korea's export industry, their exchange rate policy has also begun to be adjusted in a targeted manner. Over the past few years, they have gradually departed from the foreign exchange policy of a single peg to the US dollar, and began to consciously buy the currencies of major trading countries in the market for settlement. Among them, euro assets and RMB assets have become their upstarts.

"Another point is that when choosing euro assets, they believe that if Ireland has a debt crisis, the European Union will definitely not stand by. So instead of fearing the market, it is better to take the opportunity to buy the bottom. Therefore, in the past three months, they have frantically bought After holding so many positions, the more they bought, the more they fell now, which has already made them burnt out."

   "If it is time for the report to be released at the end of the year, I think the governor of the central bank will dismiss get out of class immediately!"

Min Yusheng finally added, "You are also very clear that the governors of the central bank are appointed by the president, and there is no time left for them to hold the debt until it matures. So now whether it is them or us, they are all bearing a huge burden from the Blue House. pressure."

   "Then what do you want to do?"

  Zhong Shi is very clear that people in South Korea are starting to worry. Combined with the news that Ireland may leave the eurozone, this makes the Koreans feel a kind of catastrophe.

  Because it has been under the protection of the United States for a long time, Koreans have a deified impression of Americans, especially at high levels. This view is more common and obvious. So when Min Yusheng passed the news of the United States' intention to intervene in Ireland to the South Korean government, they realized that it was not good.

  Although it is an alliance, the South Korean government does not simply believe that if Ireland leaves the euro zone, the US government will guarantee their investment there. Therefore, regardless of whether Ireland chooses the EU or the United States in the future, they must make a decision on the euro assets on hand, at least Irish national debt.

   "We want to find a buyer!"

  Min Yusheng said bluntly, "We need to find a buyer who can take up so many positions and sell these assets as soon as possible! Mr. Zhong, can you help us with this?"

  As the so-called urgent medical treatment, the South Korean side actually regarded Zhong Shi as a life-saving straw. You must know that this guy is the culprit of the whole incident, and now they actually ask him for help.

   I have to say that the situation in South Korea is really messed up!

  "If 15 billion euros of assets are put into the market in a short period of time, it will inevitably cause a huge impact. Even the current price cannot be sold. We know very well that unless it is a big customer, it is impossible not to shock the market."

   Min Yusheng continued, "We want to find those capable buyers, even if we make some price concessions, we are willing."

   Assets of 15 billion euros, close to one-tenth of the national debt of Ireland. Although Zhongshi has a position of about 3 billion euros that can be hedged, it is quite difficult to swallow the Irish national debt with a face value of 12 billion euros.

Seeing Zhong Shi frowned, Min Yusheng understood after a little thought, and immediately said, patted his chest: "We don't want Tianyu Fund to take action, we are wondering if we can let Huaxia's central bank take action, we must know their foreign exchange reserves But it is number one in the world.”

   So it was a wishful thinking!

  Zhong Shi understood instantly, and glanced at the other party lightly, "Want to pass on the risk?"

  Min Yusheng chuckled.

   "This is absolutely impossible!"

  Zhong Shi shook his head like a rattle, "If I drag Huaxia's central bank into trouble with this matter, then I will have no place to gain a foothold in Huaxia in the future, and I don't even think about it." He chose to flatly refuse.

  “Recently I heard that Ireland is talking with the EU in private, but both sides have denied this!”

Min Yusheng was in a hurry, and he didn't care about what to say, so he directly lifted his hole card, "But according to the information and analysis we have obtained, this matter should not be possible. If you really succeed, I am afraid that this part of the assets will be lost. suffered heavy losses."

   "..."

  Zhong Shi bowed his head in thought, and did not speak for a long time. After ten minutes, he raised his head again, "I do have a reliable buyer who can take your position, but not now!"

   "When was that?"

  Min Yusheng was overjoyed, he didn't even bother to ask the other party's name, and asked directly, "When is the opportunity to buy?"

   "Time for Ireland to make a choice!"

Zhong Shi was also very happy, and gave the answer directly, "You have to accept a certain discount for such a hasty move. In addition, I think the leaders of the G20 will not sit idly by because they cannot let the crisis spread. So I think as early as tomorrow, they will issue a statement to appease the market, and then the yield of Irish national debt will drop sharply, and it will not be too late for you to consider whether to sell at that time."

   "We've already taken that into account!"

  Min Yusheng said without hesitation, "Even if they jointly issued a statement, it can't stop the market's worries in the slightest. We are determined to sell this time. Even if the EU finally sells, we will sell these assets!"

  He said without any hesitation, and his expression was full of determination. It seemed that he had at least been officially authorized, otherwise he would not have been so determined.

   "Okay, sell it to me!"

  Zhong Shi slapped the table and said happily, "Yes, the buyer I mentioned just now is me, Tianyu Fund!"

"what?"

  Min Yusheng had an incredulous look on his face at first, but suddenly realized the next moment, "Yes, only you can hold it to maturity under such circumstances, and guarantee to pay it all!"

   Thank you book friend Chun for coming to Huakaizao for your reward! I can’t stop updating, and I finally rushed out. The author will try his best to arrange the time and strive to write well. I will continue to be cheeky and hope that everyone will actively vote for support. The recommended votes must be strong to have good results. Thank you~

  

  

  (end of this chapter)