Chapter 555 Isn’t It Warm?

If a boulder rolls down from a mountain, and everyone tries to block it with wooden boards, everyone will only suffer minor injuries, but their lives will not be in danger; if they turn around and run, the person in front will be unscathed, but the person behind will be hit and killed.

What would you choose?

Others don’t know, but if it were Goldman Sachs, it would be obvious what they would choose...

Another point is that the market initially thought that each subprime loan debt (CDO) corresponded to a default insurance (CDS), but in the end, everyone found out that in order to sell more CDS, the same subprime loan may even be insured with three or four, or even more default insurances from the insurance company...

So at present, only the Black Swan Fund knows the most - they have the most CDS default insurance - this is still a problem of rushing ahead. After the mortgage loan is stopped, whoever asks the insurance company or related institutions for compensation first is most likely to get the funds...

Then when the insurance company realizes that it is impossible for them to pay all the compensation, they are most likely to choose bankruptcy.

As for the Black Swan Fund, because it already has too many CDS, it does not need to wait until all the default insurance in its hands takes effect to find the insurance company for compensation - after a simple calculation, they know that the other party will find it difficult to pay all the default insurance in their hands, so they only need to sell it to the investment banks that need it at a high price before that.

…

On the second day after the Black Swan Fund reached a "friendship" with Morgan Stanley, on August 20, in London, Countess Chris of Bute successfully gave birth to a baby boy.

According to the name given to him before, Daniel Bute became the sixth member of the Earl of Bute's family.

Barron was holding little Daniel, and could vaguely see that the hair on his head was light golden, which was different from the dark hair of Earl Bute and Chris's flaxen hair...

Looking at the other four children playing on the carpet, Barron couldn't help but sigh to Bonnie beside him:

"So many children make the home feel warmer, baby, maybe we should also work harder..."

But when he finished speaking, Bonnie couldn't help but roll her eyes at him...

What does this mean?

I just want everyone to be warmer...

"Barron, I don't want to do it again. I'm going crazy with boredom during this period. I'm going to travel next. I don't want to spend all my time taking care of the children..."

When facing Barron, the Countess said "gritting her teeth".

Well, postpartum mood swings need to be understood, and Barron responded with a very good attitude:

"You have worked hard during this period, ma'am, how about we go to America together after a while?"

"That's great, and we can also visit Latin America..."

But then again, did you spend a lot of time taking care of the child before? It seems that all of this was left to the maids to do...

So Barron said:

"Dear Chris, Hawaii is actually not bad, with a pleasant climate. We can also go there and buy a small island, and go there for vacation when we have time. But we can wait for more than a month, when the weather in London turns cold, and little Daniel grows up a little, so we can take him out with us."

...

"Now Nvidia's stock price has exceeded $30. Can we sell it?"

Catherine Neville just returned to London from the manor in southern France with her children. After Barron accompanied his daughter Emily Neville to enjoy a warm parent-child time, he asked the maids to take the children to bed. Naturally, it was time for him to learn knowledge with Catherine, the former Mrs. Hall, and earlier, the woman who was his good brother's fiancée...

Before, following Barron's advice, Catherine took out the 50 million pounds of funds she got from selling Hall Bank shares to the Hall family and purchased about 15 million shares of Nvidia.

At that time, Nvidia's stock price was less than $6.5, but now its stock price has soared more than four times to more than $30.

At this price, the Nvidia shares held by Catherine are worth more than $450 million.

"I think it still has room to rise, so there is no need to rush to sell it. Well, you can start to sell it slowly in early October, and then let Daisy help you do it."

The reason for this is that Barron knows that in his previous life, on October 18 this year, Nvidia's stock price will reach its highest price of $37 before the subprime mortgage crisis, and then it will continue to fall due to the impact of the subprime mortgage crisis.

Although there may be slight differences in the specific prices due to the slight changes in this time and space, the overall trend will not be too different.

Similarly, DS Group also holds more Nvidia shares, some of which were bought before Catherine bought Nvidia shares, and some were bought from Vanguard Group. Currently, Barron holds more than 25% of Nvidia shares.

12% of them are held by Caesar Fund, which was exchanged with Vanguard Group for some of its shares in United Energy Group at that time.

More than 13% of the shares were purchased by Rich23 Capital from some institutions and the secondary stock market.

In the near future, they will also gradually reduce their holdings of some Nvidia shares, and finally reduce their holdings by about 5%, maintaining their holdings at about 20%.

Of course, when the subprime mortgage crisis spreads to the stock market, Nvidia's stock price will fall to about one-seventh of the high point in October this year. At that time, these funds will be used to repurchase Nvidia's shares. Ideally, the number of shares sold can be returned several times...

Of course, in actual situations, it is not calculated in this way. It is also necessary to consider the price fluctuations caused by the purchase of circulating shares. But it is still very easy to expand Barron's Nvidia shares from the current 25% to more than 40%.

Because Nvidia's shares are very dispersed at this time, the circulation ratio is extremely high.

This is just part of the various high-selling and low-buying operations of Barron's companies in the stock market during this period.

"But you said that shorting Northern Rock Bank, their stocks have not fallen much so far, do you want to continue?"

Speaking of which, Catherine has only a vague understanding of finance, or business, and all her investments are made because of Barron's opinions.

So after seeing that the stock price of Northern Rock Bank has not fallen much, it is normal to have doubts.

"Don't worry about it. Just treat it as a risk hedge for the shares of Northern Rock Bank you hold. You only need to pay a small fee."

The reason why the share price of Northern Rock Bank has not started to fall is that the subprime mortgage crisis is only in the first stage of outbreak and has not yet spread to banks, or European banks.

The other reason is that Barron's has not started to short Northern Rock Bank on a large scale...