Chapter 868 The King of Wall Street (8)

Boaz Weinstein and his team discovered the price deviation in the CDX market in November last year. At the beginning, his first reaction was to rush in to arbitrage, but it didn’t take long for him to find that the price deviation remained the same, and he was not affected by arbitrage funds at all. . After studying the market in depth, he realized the crux of the whole problem.

As an equally aggressive investor, Boaz Weinstein quickly decided to attack the abnormal behavior of the market, but when his funds were invested in this market, the price deviation remained the same, as if nothing had happened. Happened. Until this time, he didn't realize that his opponent might be a Big Mac.

When he suddenly realized, Saba Capital had no way of turning back. It would either continue to persevere or admit defeat and leave the market. The fate of admitting defeat and leaving the market may lead to the disbandment of the entire fund. Such a large loss will lead to a direct collapse of investor confidence .

   Just when he was in a dilemma, a mysterious force appeared in the market, indirectly saving his fund.

Since January, this mysterious force has secretly absorbed IG9's contracts. Although it cannot be seen on the market at all, the sensitive Boaz Weinstein still uses the range of yield changes and new funds in the market Quantitative correlations reveal the existence of this force.

  Simply speaking, since the capacity of the market is limited, the amount of funds that the party manipulating the market throws out will have a positive correlation with the corresponding change in the market. But Boaz Weinstein found that although the manipulative party frequently dumped large sums of money over a period of several months, the magnitude of market movements slowed down, although the spread between the two contracts was still slowly increasing. Expansion, but compared with the amount of newly added funds, there is obviously such a little thing missing.

   It was this lack of change that made Boaz Weinstein realize that a giant crocodile had sneaked into the market.

  At this time, he was writing hard and kept calculating on the paper, hoping to calculate the position of the new entrant through the relationship between the two.

"According to the usual amount of opponents, it should be around... 1.425 billion U.S. dollars, and then the price fell by... 4.5%. But now the price has fallen by only 3.15%, and the position of 5 billion U.S. dollars has been exhausted, excluding the momentum of the decline and the possibility of new entry The amount of funds, then the position they absorb will reach..."

   At this point in the calculation, Boaz Weinstein stopped the pen in his hand, with a look of disbelief in his eyes, "I bought at least a position worth 3.5 billion U.S. dollars, my God!"

  The next moment, as if he remembered something, he opened the drawer, rummaged through a pile of papers, and found a paper full of numbers.

   “$2 billion, $4 billion, $3.4 billion…”

He murmured the series of numbers unconsciously, and after a while, he solemnly added the words 3.5 billion US dollars after the series of numbers, "So far, they have accumulated a position of at least 40 billion US dollars, maybe the actual position is more than this More. But what I don't understand is, why haven't they launched yet, are they waiting to accumulate more positions?"

  Boaz Weinstein is very clear that this mysterious force is in the same camp as himself, which relieves the pressure on his side to a certain extent. But he still has many dissatisfaction with this "ally".

  Because he is under increasing pressure from investors.

   "No, absolutely not!"

He stood up irritably, paced back and forth in his spacious office, stopped suddenly after a while, and said to himself, "Maybe they have bigger plans, but now I can't wait .Sorry, I can't help you any more!"

  As if he had made up his mind, he took out a voice changer from the drawer, put it in his arms, put on his suit and went out.

  The streets of Manhattan were as crowded as ever. The faces of the people coming and going are full of numbness and exhaustion. This is the richest place in the world, but it is also the most stressful place in the world. If they want to survive in such a place, they must give their all.

  Boaz Weinstein is the same.

  Among the bustling crowd, Boaz Weinstein indifferently walked into a phone booth, put a voice changer around his neck, and dialed the number for The Wall Street Journal.

   "Hey, is this the Wall Street Journal? I want to break the news!"

  A young woman answered the phone. When she heard the drake-like voice, she was obviously taken aback, and then mechanically replied: "Hello, who are you? What do you want to disclose?"

  She obviously didn't realize that the other party was wearing a voice changer to cover up his identity.

   It is not surprising that there are countless anonymous phone calls from all over the world trying to break the news to the "Wall Street Journal". As a receptionist, she has long been familiar with such behaviors.

But for Boaz Weinstein, this is the first time he has made such a revelation, and he is inevitably a little flustered. When he heard the question from the other side, a sense of irritability burst out of his heart, and he began to speak uncontrollably. Be polite, "Don't ask me who I am, I have important news material to be exposed, I believe you should be interested in this."

   "You can now say, we will record the conversation, and then there will be a dedicated reporter to follow up on this matter."

  The female voice remained indifferent, and just replied politely, "But as for the final report or not, that is the responsibility of the reporters, and I will not make any guarantees here!"

"damn it!"

Boaz Weinstein cursed secretly. Of course, he did not intend to bet all his treasures on the "Wall Street Journal" family. He suppressed his anger and said, "On the CDX index of CDS, there is a big bank manipulating a certain market."

  Because CDS is an over-the-counter market, the regulatory authorities can do nothing about it, so it is obviously impossible to punish the other party for the crime of manipulating the market. If you want the other party to be sanctioned, you can only let the entire market correct market manipulation through media exposure.

   "What is CDS?"

  The female voice finally had a little reaction, "And what is CDX? Which bank manipulated these things? If you can't explain clearly, it will be difficult for our reporters to report!"

   "God, get someone who knows!"

Boaz Weinstein finally couldn't hold back the anger in his chest, and roared into the microphone, "Damn it, don't waste my time. Go, find me a knowledgeable person, I don't want to talk to a layman like you. Knowing what I want to say is a very important thing, if you don't understand anything, get the **** out of here, immediately!"

The ear-shattering roar came from the microphone, which startled the operator. Only then did she realize that there seemed to be something wrong with her attitude, and immediately apologized: "I'm sorry, sir, I'll put it right away. Your line is connected to the reporter, please stay on the call."

  It was only then that she realized that the other party seemed to have something very important to say, and soon she connected the call to a familiar reporter.

  If she didn't watch the news later, she might never know the importance of this call, which is worth 10 billion US dollars. And because of her negligence, the Wall Street Journal almost failed to report the news.

   Fortunately, all this was remedied in time.

   "I'm Adam Williams, who are you?"

  A real financial reporter answered the phone, but he didn't know what was going on. He just heard someone breaking the news, so he picked it up, "May I ask if you have any news that you want to tell us?"

   "Derivatives market, I wonder if the Wall Street Journal is interested in news about market manipulation?"

  Hearing another voice, Boaz Weinstein finally relieved the anger in his heart, and then repeated the situation just now, "How is it, are you interested?"

"certainly!"

Adam Williams has two bachelor's degrees in economics and journalism, and is no stranger to the market. When he heard the word market manipulation, he immediately became very interested, and started quickly after he picked up a post-it note. For the record, "Tell me everything you know, and I promise this news will get public attention."

   "You should know CDS, right?"

Finally waiting for someone who understands, Boaz Weinstein was very relieved at this moment, and immediately began to say continuously, "Yes, it is the derivative of credit default swap, an over-the-counter product. It is derived from the CDS market. A CDX index was created to specifically track the price of CDS in the market, and at the same time, it can reflect the abnormality of the bond market.”

"Later, a large institution developed the IG index futures based on the CDX index. 125 large companies were selected to compile the index futures to collect CDS prices and issue them every six months. But on the IG9 contract, some large institutions Manipulated, causing the market to fail to reflect normal fluctuations."

   "How do you know this market is rigged?"

  Adam Williams frowned, and roughly figured out the situation. In many cases, organizations and news media have a symbiotic relationship. Organizations want to achieve certain goals through the media, and the media also want to obtain first-hand information through the organization. The current revelations are clearly the case.

  But it is sometimes difficult to distinguish the truth from the falsehood of such revelations, so he has to ask more things.

"Hehe, look at the single CDS price, and the price in the IG9 contract. The two parties have deviated a lot, and there is a lot of room for arbitrage, but the price just cannot correct itself. From this, we know that there is something tricky in it! "

Boaz Weinstein didn't hide his secrets, and said bluntly, "I just do arbitrage in this area, but I found that no matter how hard I try, I can't arbitrage profits in this area. Based on the overall position changes, we Realize that this market is being manipulated by a certain institution!"

   "Which institution?"

  Adam Williams hastily recorded it on a post-it note, and then asked, "Also, do you have any solid evidence?"

"No!"

Boaz Weinstein didn't even think about it, so he denied the other party's question without hesitation, "As for the manipulation institution, according to the manipulation situation, I think it is one of the five major banks. JP Morgan, Bank of America, Goodman Company, HSBC or UBS."

   "Is there anything else to add?"

  Hearing this, Adam Williams basically understood what was going on. After describing the whole situation, he asked again, "Is there anything else we need to publish?"

   “There is one more on the market…”

   was about to blurt out, but Boaz Weinstein stopped in time, "There is nothing else to add. You can find an institution or an expert to confirm it, and I guarantee that you will get the same conclusion as me."

  Just now, he almost revealed that there is another big crocodile in the market. But when the words came to his lips, he suddenly realized that if he angered the other party just like this, the gains would not be worth the losses, so he abruptly took back the words that came to his lips.

   "I will confirm what you said!"

   It was obvious that the other party had more to say, but Adam Williams already knew what he wanted, so he didn't continue to ask, "So far, is there any other organization that knows this news?"

   It would be in the Wall Street Journal's interest to report it before other competitors, so he needs to know who else has the news so far.

   "You are the first!"

The corner of Boaz Weinstein's mouth twitched slightly, and then told the other party, "But soon, both the Financial Times and Bloomberg will receive this news, so if you want to publish it before other reports appear, do so now." Take action!"

   After finishing speaking, he hung up the phone with a bang.

   Thanks to jadeking, phantom runaway, shallow ray of moonlight, violetvirgin, let me think about it, etc., all book friends who voted monthly! There are also many book friends who have not mentioned it, and I would also like to express my gratitude! Seeing that so many book friends voted for this book, the author expressed his gratitude and will definitely continue to work hard, and at the same time, he will also work hard to conceive new books~Thank you everyone~

  

  

  (end of this chapter)