After saying that.

Shen Jiannan picked up the coffee that was not expensive and tasted it. Charlie Cao immediately took out the contract prepared early and handed it to HSBC and his group.

There are five copies in total, one for each.

The HSBC and his group looked at each other, laughing, and they had to grit their teeth and restrain themselves.

This is a long time to prepare.

It is only so arrogant that the arrogant guy will be so stupid.

The market has long proved an idiom.

The strong will always be strong.

Thailand came from behind to stand out from the four little tigers and ranked first. Thanks to the opening of the Bank of Thailand to the financial market, it will absorb all the world's capital into Thailand like a magnet.

There are countless capital influxes, and it is impossible for Thai real estate to fall even if it wants to fall.

Stupid?

From the perspective of HSBC, this is indeed a very stupid investment. From the perspective of Shen Jiannan, this is also a very stupid investment. In other words, anyone who is proficient in economy, finance, transactions and other related issues will think this is a very stupid investment.

Whether it is securities, futures, resources, etc., there will be some pattern in the price rise and fall.

This rule can be called a trend.

The formation of trends is caused by a combination of various causes. It can be said to be the general trend, or it can be said to be the inevitable result of the game competition between various comprehensive factors.

Just like countless small rivers flow into big rivers, the roaring of big rivers is simply resistant to people.

Simply put, the formation of trends is not a one-day achievement.

Similarly, when a trend reaches its end, it will not collapse in one day.

In terms of probability statistics.

In an upward trend.

The probability of reaching the highest is very low.

Calculated based on 365 days a year, there is only one highest in this year. If statistics are performed over ten years, then the probability is one-3,650.

The real estate industry will take a cycle of decades, so the probability that the price will become one in tens of thousands.

This is the easiest logic math problem.

But it's because of the simplicity.

It is so simple that it is the securities market, futures market, or material or real estate market.

There are always people who think they can sell to the highest or the lowest.

Every year, every day.

In a falling market, there will always be countless smart people who choose to buy at the bottom, and in a rising market, there will always be countless smart people who choose to short.

The cleverness of human beings is that they like to complicate simple things.

Cohen MacRiver has seen too many things in this regard.

If you can't bear to bear meat, you won't be able to catch wolves.

Shen Jiannan knew what Maireweather thought.

None of these bankers is cunning. If these guys think he is smart, then he can leave now.

No one can do business that knows that he will lose money.

HSBC's senior management is all financial elites who are professional. After reading it back and forth several times, several people quickly figured out what the contract was given by Capital One.

This is a bet agreement.

It is very close to the credit default swap in the US real estate bond market, but it is different from the credit default swap in the US real estate market with the price of bond assets as the subject matter.

The well-known real estate projects in many cities in Thailand are used as the subject matter, and the weighted average valuation is used, and the international common currency USD is used as the unit of calculation.

When the weighted draw index of housing prices continues to rise, Capital One must pay HSBC a premium that is sufficient to fulfill the contract every month.

When the housing comprehensive index continues to fall, the bank will pay the first capital insurance premium.

It's a bit similar to an insurance contract that preserves the value of the property.

For example, if you help a friend buy a personal insurance or vehicle insurance, but the beneficiary is the policyholder.

But not exactly.

A regular life or property insurance contract calculates the maximum compensation amount based on the insured payment amount and the insurance period. If the insured or the assets suffer from an accident in the contract in the middle, the insurance company will make compensation according to the terms of the contract.

But if the target is guaranteed in the middle without any accidents, then the policyholder's annual premium will be paid in vain.

It can be said that in a conventional insurance policy, the insured or the asset is the subject matter.

After the performance of the contract is completed, no matter how much premium the insured person pays, as long as the subject matter is insured has no accidental losses in the contract, the premium will be completely owned by the insurance company.

It is also somewhat similar to securities, futures, and foreign exchange option contracts, and this subject matter is nothing more than the Thai real estate market.

This contract can be passed without the need for an agreement associated with the physical object, so that the number of transactions between the buyer and the seller can be multiplied infinitely from the physical amount.

The contract text given by Capital One is equivalent to buying a weighted option contract with value-preservation insurance for Thai real estate investment.

If the value of the house increases, the premium paid by Capital One will be vain. Only when the value of the house decreases can Capital One benefit from it.

The similarity between this contract and an insurance contract is that the bank assumes the performance responsibilities of similar insurance companies.

The insurance compensation ratio is one of the important parameters in an insurance policy.

The contract text given by Capital One naturally also has this kind of compensation ratio parameter.

For a contract worth $100 million in compensation, Capital One needs to pay one percent of the premium annually.

That is to say, if Capital First purchases a credit default swap of up to $100 million in compensation, it will pay a premium of $1 million per year. If the price of the house rises or is higher than the value when it purchased the contract, Capital First will lose $1 million in vain.

Only when the house price is lower than the value of the purchased subject matter, Capital One can get HSBC compensation.

This compensation amount is calculated based on the real estate loss value insured by Capital One.

For example, the average price of Bangkok property in statistics is 1,000 US dollars per square meter.

Then as long as the weighted value of Thailand's real estate is more than or equal to one thousand US dollars, Capital One purchases a credit default swap of one million US dollars, and will lose one million US dollars.

Only when the average price of real estate in Thailand is less than one thousand US dollars can Capital First receive standard Chartered compensation.

This compensation amount depends on the actual price of the comprehensive weighted price of the Thai real estate when the First Capital redemption contract or the option contract expires.

If it is 990 US dollars, First Capital can obtain Standard Chartered’s compensation amount. The lower the price, the greater the amount HSBC will pay.

The amount of compensation is calculated as ten dollars multiplied by five hundred percent.

Putting down the documents in his hand, Cohen Maiweither rubbed his nose. There was no way, and he was worried that he would laugh out loud. In that case, it would be bad if he scared the fat sheep in front of him.

After kneading several times in a row, Cohen MacRiver and Weather finally restrained the urge to laugh. He looked at Shen Jiannan sincerely and said.

"Shen, as a friend, please be honest, this is a very stupid investment."

Not losing money, he is a top banker.

Shen Jiannan raised his eyebrows gently. He was still so hypocritical at this time. No wonder this guy was in charge of HSBC.

What expressions will these guys look like in the future?

Shen Jiannan suddenly wanted to laugh.

Fortunately, this guy has strong control.

He spoke after he felt like he wanted to twitch his face.
Chapter completed!