Chapter 555 Isn’t it warm?
If a huge boulder rolls down a mountain and everyone blocks it with wooden boards, everyone will only suffer some minor injuries, but it will not be life-threatening; if they turn around and run away, the people in front will be unscathed, but the people behind will be hit. Death.
How would you choose?
Others don't know, but if it were Goldman Sachs, it's obvious what they would choose...
Another point is that at first the market thought that each subprime loan obligation (CDO) corresponded to a default insurance (CDS), but in the end, everyone discovered that in order to be able to sell more CDS, the same subprime For loans, you may even have purchased three, four, or even more default insurances from insurance companies...
So at present, only the Black Swan Fund knows best - they have the most CDS default insurance - this is still a matter of front-running. After the mortgage loan is stopped, who will be the first to request the insurance company or related institutions? To compensate, who is most likely to get the funds...
Then when the insurance company realizes that it is impossible for them to pay all the compensation, their most likely option is to go bankrupt.
As for the Black Swan Fund, because they already have too many CDS, there is no need to wait until all the default insurance in their hands takes effect to find insurance companies to compensate - after simple calculations, they know that the default insurance in their hands will not be compensated by the other party at all. It would be difficult to pay all the compensation, they just need to sell it at a high price to the investment banks who need it before then.
…
Just the day after the Black Swan Fund reached a "friendship" with Morgan Stanley, on August 20, in London, Chrissy, Countess of Bute, successfully gave birth to a baby boy.
According to the name given to him before, Daniel Bute became the sixth member of Earl Bute's family.
Barron was holding little Daniel and could vaguely see that the lanugo hair on his head was light golden, which was different from Earl Bute's dark hair color and Chrissy's flaxen hair color...
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, honey, maybe we should work harder..."
But after he finished speaking, Bonnie couldn't help but give him a roll of her eyes...
What does it mean?
I just hope everyone can be warmer...
"Barron, I don't want to do it again. I'm going to go crazy with boredom during this period. Next, I'm going to travel. 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 an excellent attitude:
"I have worked hard for you during this period, madam. How about we go to the United States together in a while?"
"That's not bad. Also, you can take a trip to Latin America..."
But then again, did you spend a lot of time taking care of your children before? It seems that this is all left to the maids...
Then Barron said:
"Dear Chris, in fact, Hawaii is not bad, the climate is pleasant. We can also stop by and buy an island there, and go on vacation when we have time. But we can wait for more than a month, and then we will be here in London. The weather has turned colder, and little Daniel has grown up enough to take him out with him.”
…
"Nvidia's stock price is now over 30 US dollars. Can it be sold?"
Catherine Neville had just returned to London with her child from the manor in the south of France. After Barron had enjoyed some warm parent-child time with his daughter Emily Neville, he asked the maids to take the child to bed. Naturally, he It's time to learn knowledge with Catherine, the woman who was once Mrs. Hall, and earlier, his good brother's fiancée...
Previously, following Barron's advice, Catherine used the 50 million pounds of funds she received from selling her shares in Hall Bank to the Hall family to purchase approximately 15 million shares of Nvidia shares.
At that time, Nvidia's stock price was less than $6.50, but now its stock price has soared more than four times, reaching more than $30.
At this price, the Nvidia shares held by Catherine are already worth more than $450 million.
"I think it still has room to rise, so there's no need to rush to sell it. Well, you can start selling it slowly in early October, and then just let Daisy help you with the operation."
The reason why I say this is because Barron knew that in his previous life, on October 18 this year, Nvidia's stock price would reach its highest price of $37 before the subprime mortgage crisis, and then it would be affected by the subprime mortgage crisis. , continues to fall.
Although there have been small changes in this time and space, the specific prices may be slightly different, but the overall trend will not be too different.
Similarly, DS Group also holds more NVIDIA shares, some of which they had already bought before Catherine purchased NVIDIA shares, and some of which were purchased from the Pilot Group. , currently holds more than 25% of Nvidia shares in Barron's hands.
12% of it is held by Caesars Fund, which was obtained in exchange for part of the shares of United Energy Group it held at the time with Vanguard Group.
The other 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 stocks, eventually reducing their shareholdings to about 5% and maintaining their shareholdings at about 20%.
Of course, after the subprime mortgage crisis spreads to the stock market, Nvidia's stock price will fall to about one-seventh of its high point in October this year. At that time, these funds will be used to repurchase Nvidia shares. Ideally, the stock price will be able to sell The number of stocks will come back several times...
Of course, in actual situations, this is not the calculation. We also need to consider the price fluctuations caused by the purchase of outstanding shares. However, it is still very difficult to say that the NVIDIA shares controlled by Barron will be expanded from the current 25% to more than 40%. relaxing.
Because Nvidia's shares are very dispersed at this time, the circulation ratio is extremely high.
This is just part of the various sell-high and buy-low operations carried out by Barron's companies in the stock market during this period.
"But when you talk about shorting Northron Rock Bank, their stock hasn't fallen much so far. Do you want to continue?"
Speaking of which, Catherine knew little about finance or business, and all of her investments were made based on Barron's opinions.
Therefore, after seeing that the share price of Northrock Bank has not fallen much, it is normal to have questions.
"Don't worry about this. Just think of it as a risk hedging for the Northrock Bank shares you hold for the time being. All you need to pay is a small handling fee."
The reason why the share price of Northrock Bank has not yet started to fall is that on the one hand, the subprime mortgage crisis can only be said to be in the first stage of the outbreak, and has not yet begun to be transmitted to banks, or to European banks.
On the other hand, the reason is also because Barron's has not yet started a large-scale short sale of Northrock Bank...
