Credit default swap, creditdefaultswap, referred to as cds.

It is the most common credit derivative product in the bond market in the financial market.

Similar to a combination of insurance and options, but not exactly.

In the late 1970s, due to the oil crisis, the financial industry became completely garbage. Wall Street elites came to sell insurance products every day, and were directly bombarded by customers with brooms or even guns.

The securities market and the bond market are also not easy. Holding a securities market will have only one price, and the fifteen-year maturity income is only $10,000.

People do nothing, and sell on phones every day, and there are poor people everywhere.

At this time, he came to Wall Street alone and joined the Solomon Brothers Company.

He is Lewis Lennery

In 1981, the US Congress passed a bill, and asset securitization, especially real estate asset securities, which appeared in the 1970s, received great room for birth and development. The United States saw a climax of asset securitization, and the scale of the real estate securities market expanded rapidly, surpassing the US stock market and becoming the world's largest securities market.

At that time, most companies on Wall Street were not fully prepared for this sudden change, but Solomon Company established a complete and standardized asset securitization department as early as 1978 with a sensitive sense of market.

While other Wall Street companies were still hesitating and wandering, Solomon had already earned hundreds of millions of dollars in revenue and became the leader of the real estate securities market. Lewis Lenellery, general manager of the real estate securitization department, became a bond trader who started his career by sending and receiving emails, and thus became the legend of Solomon.

reason?

The reason is a new idea from Lewis Lennery.

cds.

People who buy houses will pay off their home loans with fixed interest rates and pay them off in 30 years, but if the house price drops and the house is cut off, the banking industry will suffer from large amounts of bad debts.

If housing securities are assetized and a risk hedging tool is made, it will greatly reduce the risk when investing in real estate.

A perfect systemic bond.

People who invest in real estate can avoid losses caused by the downward trend of the property, because according to the CDS rules, when the price is lower than certain range values, the party selling the CDS needs to pay a liquidated damages to the customer.

Banks can also purchase CDS, which can avoid bad debts caused by bank mortgages.

The government can also benefit from this, so the financial system develops steadily, and everything is within control?

Then?

Then the Solomon Brothers became the king of Wall Street.

In 1987, Solomon Company's capital reached US$3.4 billion, with 6,000 employees, and has branches in major financial centers around the world. It became a giant on Wall Street and an empire in the financial world in the mid-1980s.

Then nothing happened.

In 1989, Solomon Brothers vacated a Tokyo Securities short option, and after multiple channels of turnover and the creditworthiness of the Denmark King, it sold it to major insurance companies in Japan.

Later, he bought short options over and faced huge losses and was acquired by the Traveler Consortium.

Of course, what really made CDS shine was the well-known subprime mortgage crisis. It appeared in China and in the next twenty years, quietly appeared in major banking institutions.

Nine o'clock in the morning.

Happy Valley, Royal Villa Garden.

Shen Jiannan stood in front of the mirror, stretched out his hand, allowing Aso Oizuki and Shinkawa Masako to tick on him.

The underwear was put on, the quilt was put on, the shirt was put on, and the socks were put on. When I put on a suit, a young man with extraordinary temperament appeared in the mirror.

Of course, Shen Jiannan was not idle either.

While Aso Oizuki was helping with the tie, he was still busy working with the phone.

Charlie Cao is very efficient in work. In a few days, he has completely completed the contract requested by Shen Jiannan.

However, Shen Jiannan was still worried.

None of the major banks is vegetarian, they all eat meat.

"Charlie. This contract is very important to us, are you sure there are no loopholes?"

"Boss. The sixteen of us cross-examined thirty times, revised it more than ten times, and confirmed that there was no problem."

"Wairuigou's. What about the confidentiality agreement."

"If HSBC violates the law and confidentiality agreement, we must pay $5 billion in compensation. The responsibility will be on the individual."

"That's good. Wait for me at the bank gate later."

“…”

After hanging up the phone, Shen Jiannan looked at himself in the mirror and numbing his teeth.

With the greedy habits of bankers, they will definitely go crazy with happiness when they give HSBC such a big luxury gift package.

"Owner."

Aso Oki shouted and put his watch on Shen Jiannan's wrist.

The cool jade stays on the pulse and makes people feel shocked.

Shen Jiannan stood still.

Aso Oritsuki understood and ticked Shen Jiannan's lips with her feet.

"Um?"

Masako Shinkawa was also very tactful and took the initiative to come over to send a kiss.

flutter--

A rag doll flew over and hit Shen Jiannan accurately. I saw this shameless scene early in the morning, and Lu Xinyue expressed her dissatisfaction with strength.

Shen Jiannan numbed his white teeth and walked to the door, without saying a word, grabbing Lu Xinyue's head.

moment.

The two separated, and Lu Xinyue rolled her eyes fiercely.

Since returning to Hong Kong, this guy has become more and more unscrupulous.

Men really can't be spoiled.

Shen Jiannan stopped when he saw that he was ready and pretended to be stupid.

"It's safe."

Dada dada--

Say safe, come safe.

Shen Jiannan subconsciously turned around and saw that he was immediately amazed.

Kardashian changed into a standard professional suit, wearing a white shirt, a black suit, and a short skirt that was barely enough to reach the knees, outlining the thrilling and beautiful scenery.

I don’t know if the clothes are not suitable, but the clothes with good fabrics are so stretched that they cannot be fully closed, and the buttons seem to be in danger of breaking open at any time.

"boss."

In order to show that he had no ghost in his heart, Shen Jiannan quickly withdrew his gaze and made a woman-first move towards Lu Xinyue.

Lu Xinyue rolled her eyes wide and left tickingly in her high heels.

Kardashian kept a distance of half a meter and followed closely behind, with light moves and undulating waves that made people unable to move their eyes away.

Shen Jiannan looked at the backs of the two and was deeply intoxicated.

Suddenly, Kardashian behind her turned around and her blue eyes threw a charming look in a flash.

It was like it was charged, Shen Jiannan hit a corner of the sofa and almost fell down and chewed the mud.

Kardashian couldn't help laughing, ignoring the big boss' embarrassment, twisting her waist and throwing the embarrassing guy far away.

Tolerate.

I endure it.

Looking at the ups and downs of the two people, Shen Jiannan did not dare to take the call at all.

Kardashian is a swallow specially trained by the KGB. If you dare to do anything randomly, you may die miserably and heroically.

No, I must ask how Peng Er crow trains.

Little girl, wait for me.

In the lush grassy yard, Tang Dunhou had already driven Lincoln to wait for a long time. When the three of them got into the car, they stepped on the accelerator and drove out quietly.

Central.

HSBC Bank Building.

Cohen MacRiver-Weather stood at the door with a young Chinese woman folded her hands together. The two occasionally greeted customers who walked into the bank, smiling slightly on their faces, showing politeness.

Those who know Cohen MacRiver is very curious.

Obviously, he is waiting for someone here.

However, as the executive president of HSBC Hong Kong, there are only those who visit Maiweiser to borrow money. How many people can let him wait in person at the door?

Is it the Queen of England coming?
Chapter completed!