He reached out to take the documents handed over by Annie and looked down.

[Sub-loan bad debt investigation]

He looked up and stared at Annie's eyes, "What? Did you buy subprime mortgage bonds?"

Annie smiled and shook her head: "No, I shorted this garbage thing. For insurance, I spent a lot of money to ask someone to do some investigation in various states and cities, and what you have in your hands is the investigation results."

Kim Hyun-tae nodded, put his eyes back on the documents in his hand, and lowered his head and said to Annie: "It's not just buying subprime bonds. This thing is just like you said, it's just garbage. Shorting is of course a clever choice, but which level are you shorting?"

Annie replied with a smile: "Class B, this is safer. If the subprime mortgage crashes as I guess, I will have at least three to six times the profit."

"How much did you buy?" Kim Hyun-tae began to look through the documents, and asked casually.

Annie's face showed a hint of pride and replied: "$50 billion."

$50 billion is a lot, and then Anne can earn at least $100 billion or more.

You know, Kim Hyun-tae took his own cash and with his daughter's $20 billion, he only paid $70 billion, which was only $20 billion more than Anne.

But unlike Annie, Kim Hyun-tae bets on A-level subprime mortgage bonds, which is a complete bet on the collapse of the real estate market. Therefore, if this happens, Kim Hyun-tae will make more money than Annie.

After all, Annie bet on a relatively safe grade B subprime bond, while Kim Hyun-tae bet on a Class A that no one thinks would be ruined.

You should know that the structure of the subprime mortgage bond package and sale combination is composed of credit-grade mortgage bonds such as AAA, AA, A, and B++, B, C++, C++, C+, and C.

Therefore, the A-level credit is absolutely excellent.

For the United States with a credit social system, no one thinks that anyone would be willing to let their credit go bankrupt, so subprime mortgage bonds are definitely a good thing.

Because once a loan is not paid back, a person's credit will go bankrupt. This is not only a question of whether he can make a loan in the future, but even no one will ask for a job for people with credit problems. This is definitely related to personal survival.

Of course, under normal circumstances, there is no problem with subprime mortgage.

After all, this thing is a financial derivative composed of mortgage loans.

If you follow the normal procedure, of course no problems will occur.

But I can't resist the bank allowing the people below to do whatever they want for the sake of profit.

"Whiston Bank took action on the subprime bonds in its hands, and the loan issuance approval procedures have become much stricter. I am trying my best to make Whiston avoid this trend, although I don't know when it will come."

While Kim Hyun-tae was watching the documents, Annie said to Kim Hyun-tae while watching TV.

Kim Hyun-tae still agrees and appreciates Anne's approach.

Because subprime bonds are issued randomly, the real estate collapse eventually led to a financial crisis in the whole world.

This is because the subprime mortgage bonds are too large and there are as many as tens of trillions of dollars a year. I don’t know how many countries’ funds and banks use holding subprime mortgage bonds as a means of preservation. Therefore, when subprime mortgage bonds become penniless, these holders will of course lose all their money, and all countries have economic crises due to this problem.

It can be said that subprime mortgage bonds are a pit, and it is also a big pit.

On the surface, this pit may be caused by everyone's greed, but it is unknown whether there is any conspiracy.

After all, Americans are not good birds, especially the big capitalists on Wall Street.

Now that Kim Hyun-tae's emergence, Anne has been able to see the problems in subprime mortgage bonds and has also discovered that her bank in Wheatston also has terrible loopholes in the mortgage business. Therefore, she is now making every effort to make up for it in order to avoid the outbreak of the subprime mortgage crisis.

Otherwise, Wheaton Bank might be dragged down by the mortgage default.

Of course, because the Plaza agreement made a fortune more than two years ago, it would not have cost the bank of Wheatston Bank, but the amount of mortgage defaults that day would definitely make Anne feel pain.

Therefore, it is better to avoid losses.

This is a quality that a qualified capitalist must possess. You cannot just have money in your hands and don’t care about the losses even if you know that you have losses. That’s something that only fools will do.

Kim Hyun-tae looked through the documents, and the more he looked, the more serious he looked.

The team Anne hired to investigate was too careful, and it has to be said that the huge investigation fee was not wasted.

In the document, it is obvious that there are several examples that can be thought-provoking.

One of them was that the investigation team went to a community and found that the homeowner rented the house and the tenant paid the rent for several months, but the homeowner did not pay the mortgage on time. The tenant knew nothing about it. At the same time, the homeowner did not know what he had done with the money.

Moreover, this homeowner not only has not paid the mortgage, but his mortgage has not been paid for several periods. According to common sense, the bank should have come to collect the house, but I don’t know how it is done that the homeowner still owns this property.

At the same time, after investigation, the mortgage that the homeowner had not paid for half a year was packaged into a high-quality mortgage. After the credit evaluation was even A+, it was combined with other mortgage bonds and sold to investors.

Seeing this, Kim Hyun-tae felt it was really shocking, and this was just an example of a drop in the tip of the iceberg.

If even such a mortgage can be rated as A+, then Kim Hyun-tae can imagine how rubbish those mortgage bonds with a credit rating of AAA would be.

What is the level of garbage bonds that are lower than A-level credit?

The second example is also very painful.

A stripper can actually make repeated loans and get several properties under his name, which is completely illogical.

After investigation, it was found that the dancer did take out a loan, but she didn't borrow money to buy a house, and she never paid back the money she borrowed.

Therefore, the mortgage loans for these houses are also called non-performing assets, but after these non-performing loans were packaged again, they were sold to investors in the name of subprime mortgage bonds.

The transfer team found that the reason for this situation was entirely the result of a conspiracy between the real estate agent and the stripper.

Because of successfully borrowing a mortgage, the agency can get a commission of three to four thousand US dollars, and the stripper can also get a benefit of two to three thousand US dollars.

As for where the loan ends up, we need to ask the bank.

In addition, investigators also found that most bank loans did not even have Te Niang's review. The job and income gap in the application column could also be approved to obtain the mortgage loan, and the approval speed was very fast.

Therefore, a large number of high-quality real estate properties are actually junk assets that have not paid off their loans, but no one knows these inside stories.

Everyone is blinded by the false and stimulating the boom of the bond market packaged by those junk mortgages, so they ignore the threat hidden in the dark.

Subprime bond interest rates are getting higher and higher every year, but this year it has actually reached a height of 9%. Therefore, anyone who holds subprime bonds is considered to be able to make a profit with peace of mind.

You should know that the Federal Reserve has negative interest rates, and business is not easy to do now, and those who can make money are monopolized by the giants. Therefore, sitting at home holding subprime mortgage bonds can steadily make the banknotes 10% more in your hands.

It is precisely because of the high interest rates that attract a large number of funds and banks from countries around the world to buy.

Once upon a time, Anne also held many subprime bonds.

However, because of Kim Hyun-tae's relationship, Annie sold all the subprime bonds she had to others and made a small profit, avoiding the fate of being worthless in the future.

It is true that the interest rate of subprime bonds is high at the moment, but the price of investment is also high.

Last year, I still had more than 100 US dollars per ticket, but this year it turned out to more than 300 US dollars per ticket. The entry threshold has been raised a lot, but even so, many people still flocked to it and bought it with money.

Major banks have claimed that the non-performing mortgage loan rate is less than 2%, but the data given by Anne's investigation team is as high as 13%, and there is still an upward trend over time.

What does this mean?

This shows that the subprime mortgage bond market is about to collapse.

But now those capital tycoons are still covering this cover well, and are constantly creating false prosperity and deceiving investors.

As he looked, Kim Hyun-tae couldn't help but secretly speculate.

[Is this a major financial conspiracy that Morgan played?]

Indeed, after all, in the subprime mortgage bond market, wealth from countries around the world gathered, otherwise this plate would not have been so big.

The basis of this plate is based on people's US real estate market and credit default system.

After all, Americans do not bring cash when they go out, and a credit card is enough.

Putting aside mortgage loans, there are all kinds of student loans and car loans. Even if you want to buy a ten-dollar product, you can go to the loan to solve the problem and then repay the loan slowly.

It can be said that this system has been operating well in the United States and has not had any problems for decades, so everyone in the United States is very confident.

In a credit society, no one cares about their credit?

But people have overlooked a fatal problem, that is, when someone is unemployed, full of fakes and financial chaos, the entire subprime bond market will completely collapse.

Kim Hyun-tae breathed a sigh of relief, knowing that there was no problem with his investments with his daughter, and this investigation report had given a clear answer.

Putting the finished documents beside him, Kim Hyun-tae turned his head and looked at Annie and said, "It seems that those credit rating agencies are deeply trapped, and they are at least also roles that aid evildoers. If they were not for their help, how could these junk mortgages have such a high rating?"

Upon hearing this, Annie took her eyes back from the TV and looked at Kim Hyun-tae.

"Yes, those credit rating agencies are terrible, so I'm going to replace them later."
Chapter completed!