Chapter 1198: Anne's Investigation Results
He took the document from Annie and looked down.
[Subprime bad debt investigation]
Looking up, Jin Xiantai stared into Annie's eyes, "What? You bought subprime bonds?"
Annie smiled and shook her head: "No, I shorted this garbage. To be safe, I spent a lot of money to hire people to do some investigations in various states and cities, and you have the results of the investigation."
Jin Xiantai nodded, put his eyes back on the document in his hand, and said to Annie with his head down: "It's not that you just buy subprime bonds. This thing is just like what you said, it's completely garbage. Shorting is of course a smart choice, but what level did you short?"
Annie smiled and replied: "Grade B, which is safer. If the subprime collapses as expected, I will have at least three to six times the return."
"How much did you buy?" Jin Xiantai began to look through the documents and asked casually.
Anne's face showed a hint of pride, and she answered, "50 billion US dollars."
50 billion US dollars is not a small amount. Anne can earn at least 100 billion US dollars or even more by then.
You know, Kim Hyun-tae only bet 70 billion US dollars with his own cash, including his daughter's 20 billion US dollars, which is only 20 billion US dollars more than Anne.
But unlike Anne, Kim Hyun-tae bet on A-level subprime bonds, which is a complete bet on the collapse of the real estate market. Therefore, if such a situation really occurs, Kim Hyun-tae will earn more than Anne.
After all, Anne bet on B-level subprime bonds, which are relatively safe, while Kim Hyun-tae bet on A-level bonds, which no one thinks will be ruined.
You know, the structure of the subprime bond package sale combination is composed of mortgage bonds with credit ratings of AAA, AA, A, and B++, B+, B, C++, C+, and C.
Therefore, A-level credit is absolutely excellent.
For the United States, which has a credit social system, no one thinks that anyone would be willing to let their credit go bankrupt, so subprime bonds are definitely a good thing.
Because once the loan is not repaid, a person's credit will be bankrupt. This is not only a question of whether they can get a loan in the future, but also that people with credit problems will not be hired when they look for a job. This is absolutely related to personal survival.
Of course,
Under normal circumstances, there is no problem with subprime loans.
After all, this thing is a financial derivative composed of mortgage loans.
If the normal procedures are followed, there will be no problems.
But the bank can't stand the fact that the people below are letting it go for the sake of profit.
"Whiston Bank has sold the subprime bonds in its hands, and the loan 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 Jin Xiantai was reading the documents, Annie said to Jin Xiantai while watching TV.
Jin Xiantai still agrees with and appreciates Annie's approach.
Because subprime bonds, it was because of the random issuance of loans that eventually led to the collapse of the real estate market, which in turn led to the outbreak of the financial crisis around the world.
This is because the subprime bond market is so large, with tens of trillions of dollars a year. I don't know how many countries' funds and banks hold subprime bonds as a means of preserving value. Therefore, when subprime bonds become worthless, these holders will of course lose all their money, and all countries have experienced economic crises due to this problem.
It can be said that subprime bonds are a pit, and a big pit.
On the surface, this pit may be caused by everyone's greed, but it is unknown whether there is a conspiracy.
After all, Americans are not good birds, especially those big capitalists on Wall Street.
Now, due to the sudden appearance of Kim Hyun-tae, Annie was able to see the problems in subprime bonds, and also found that her own Whiston Bank also had terrible loopholes in the mortgage business, so she is now doing her best to make up for it in order to avoid the outbreak of the subprime crisis.
Otherwise, Whiston Bank might be dragged down by mortgage defaults.
Of course, because the Plaza Accord made a fortune more than two years ago, Whiston Bank would not go bankrupt, but the large amount of mortgage defaults would definitely make Annie feel painful.
So, it is better to avoid losses if they can be avoided.
This is a quality that a qualified capitalist must have. You can't just ignore the loss because you have money in your hands. That's what a fool would do.
Jin Xiantai flipped through the documents, and his expression became more serious the more he looked.
The team hired by Annie investigated too carefully. It must be said that the huge investigation fee was not wasted.
In the documents, there are obviously several examples that are thought-provoking.
One of them is that the investigation team went to a community and found that the homeowner rented out the house. The tenant paid rent for several months, but the homeowner did not pay the mortgage on time. The tenant knew nothing about it, and the homeowner did not know what he did with the money.
And this homeowner not only did not pay the mortgage, but he had not paid his mortgage for several periods. According to common sense, the bank should come to collect the house, but I don't know how the homeowner still holds this property.
At the same time, after investigation, the mortgage that the homeowner had not paid for half a year was packaged as a mortgage with good qualifications, and even the credit rating was A+, and it was combined with other mortgage bonds and sold to investors.
Seeing this, Jin Xiantai felt that it was really shocking, and this was just the tip of the iceberg and a drop in the ocean.
If even such a mortgage could be rated A+, then Kim Hyun Tae could only imagine how junk those mortgage bonds with a credit rating of AAA would be.
At the same time, what kind of garbage will a mortgage portfolio bond with a credit rating below A be like?
The second example is also very annoying.
It is completely illogical for a stripper to be able to take out repeated loans and acquire several properties under her name.
After investigation, it was found that the dancer did take out a loan, but she did not take out the loan to buy a house, and the money she took out was never repaid at all.
Therefore, the mortgages on these houses were also called non-performing assets, but these non-performing loans were packaged again and sold to investors in the name of subprime mortgage bonds.
The investigation team discovered that the reason for this situation was entirely the result of a conspiracy between the real estate agency and the strippers.
Because of a successful mortgage loan, the intermediary 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 loaned money ended up, you need to ask the bank.
And the investigators also found that most bank loans were not even reviewed by special mothers. Even if the occupation and income in the application column are blank, you can get the mortgage through approval, and the approval speed is very fast.
Therefore, a large number of seemingly high-quality properties are actually junk assets without repayment of loans, but no one knows the inside story.
Everyone was so dazzled by the false boom in the bond market packaged by junk mortgages that they ignored the threat lurking in the dark.
The interest rate on subprime bonds is getting higher year by year, and this year it actually reached a high of 9%. Therefore, anyone who holds subprime bonds is considered to be able to make a fortune without any worries.
You know, the Federal Reserve has negative interest rates, and business is not easy to do right now, and everything that can make money is monopolized by predators. Therefore, just sitting at home and holding subprime mortgage bonds can steadily increase the money in your hands by 10%. Who wouldn’t want that? .
It is precisely because of the high interest rates that it has attracted a large number of funds and banks from all over the world to buy.
At one time, Anne also held a lot of subordinated bonds.
However, because of Jin Xiantai's relationship, Annie sold all the subprime mortgage bonds in her hand to others and made a small profit, avoiding the fate of those subprime mortgage bonds being worthless in the future.
Right now, the interest rates on subordinated bonds are high, but the investment price is also high.
Last year it was more than 100 US dollars a piece, but this year it has become more than 300 US dollars a piece. The entry threshold has been raised a lot, but even so, many people are still flocking to it and waving banknotes to buy.
Major banks claim that the non-performing loan rate of mortgage loans is less than 2%, but the data given by Anne's investigation team is as high as 13%, and it is still on the rise as time goes by.
What does this mean?
This shows that the collapse of the subprime bond market is imminent.
It's just that the capital giants are keeping this lid closed, and they continue to create false prosperity and deceive investors.
As he watched, Jin Xiantai couldn't help but secretly speculate.
[Is this a big financial conspiracy played by Morgan? 】
Indeed, after all, the subprime bond market contains wealth from all over the world, otherwise the market would not have become so big.
The foundation of this plate is based on people's understanding of the U.S. real estate market and the credit default system.
After all, Americans don’t carry cash when they go out, a credit card is enough.
Apart from housing loans, there are various kinds of loans, such as student loans and car loans. Even if you don’t have enough money to buy a ten-dollar product, you can get a loan and then pay off the loan slowly.
It can be said that this system is running very well in the United States and has been running for decades without any problems. Therefore, everyone has great confidence in the United States.
In a credit society, no one cares about their own credit.
But people have overlooked a fatal problem, that is, when someone loses his job, fraud is everywhere, and financial chaos occurs, the entire subprime bond market will completely collapse.
Jin Xiantai breathed a sigh of relief, knowing that there was no problem with his and his daughter's investment. This investigation report had already given an obvious answer.
Putting the documents he had read by his side, Jin Xiantai turned to look at Annie and said: "It seems that those credit rating agencies are in deep trouble, and they are at least aiding the evil. Without their help, what would happen to these junk mortgages?" Probably that high a rating.”
Hearing this, Annie looked away from the TV and looked at Jin Xiantai.
"Yeah, those credit rating agencies suck, so I'm going to replace them in the future."
When she said these words, Anne's eyes flickered, indicating that she had strong ambitions for this...