Rebirth 2010: I taught Mr. Lei how to make a mobile phone

Chapter 713: Ants Eating Elephants
As soon as the boss left, the conference room exploded.

Everyone looked at each other in bewilderment. How could a billion become a trillion? Even ghost money couldn't be played like this.

"Gambling and drug trafficking don't have such high profits, right?"

"I can't think of any possibility now except magic."

"Our boss never speaks without a purpose. He must have a reason for saying that. If he says there is, then it should be possible."

Then, various financial terms collided in the conference room - leveraged buyout, ABS, Basel Accord, beta coefficient.
Experts broke down the combination and tried to find the "only solution" to the problem.

Surrounded by a group of financial and accounting experts, Zhang Xiaolong looked confused and a little autistic. He felt like he was out of place because he was good at products.

But the boss called him over. WeChat finance was mentioned in the topic just now. Does that mean WeChat is going to focus on Internet finance?

Two hours later, they managed to piece together a 10x leverage plan through various financial tools, which was able to bring the funds to 1000 billion, but it was still far from trillion.

Increasing it 100 times is indeed a bit of a fantasy.

"Are we too conservative? Do you remember the two words in the boss's question? Maybe we can find some loopholes." Wu Dan suddenly spoke up.
"A loophole? This line is hard to grasp."

"We used to be based on traditional business models, but we are an Internet company. If we follow the current Internet finance model, the supervision has not caught up. If we change our thinking,

“Is it ABS?”

“Yes, it’s ABS!”

The meeting room suddenly became quiet.

In the ears of ordinary people, ABS is just an abbreviation for automobile anti-lock braking system or plastic raw material.

The ABS that Wu Dan mentioned refers to asset-backed bonds in the financial field.

"But the traditional ABS turnover is usually three to five years. What do you mean?"

“I just checked the relevant terms. Generally speaking, ABS issuance is for large projects with a relatively long project cycle, three to five years is not uncommon, so there is no limit on the number of times.

But the Internet has a different high turnover rate, so this method can be quickly expanded without this limitation.”

".In other words, if you package assets and pledge them through ABS, and keep adding leverage, the cycle will continue~~~~"

"Theoretically, it can be repeated indefinitely!" Wu Dan paused, his eyes burning, "Then, let alone trillions, even 5 trillion or 10 trillion will be a matter of whether we want to do it or not."

With everyone's supplementation and improvement, they really came up with a capital derivation law of "one begets two, two begets three, and three begets all things"...

The next afternoon, same meeting room, same people.

The difference is that Chen Mo was listening quietly with a small notebook in his hand.
In the past, it was the boss who taught them, but today it was his turn to teach the boss. Such opportunities were rare, and as a "lecturer", Wu Dan felt a degree of excitement and excitement that was rarely seen on ordinary days.

He rolled up his sleeves and started to solve the problem on the podium.
"After collective discussion, we actually came up with a 'Tiyunzong' method to answer the question you left yesterday."

"Tiyunzong? Interesting~" Chen Mo's first reaction was to step his left foot on his right foot and spiral up to the sky. It was quite apt. He stretched out his hand to signal to continue.

Wu Dan didn't hesitate to go straight to the projector and even thoughtfully made an animated demonstration effect to help the boss understand the operating principles.

“The business logic of ordinary people is to spend within their means and use existing capital to create corresponding returns. In other words, I can do as much work as I can with the capital I have.

But the way things are played in the financial field is completely different. Here, the emphasis is on using future money to do current things, and then using current things to make future money. The charm of financial instruments lies in their ability to amplify this leverage effect.

The first thing we thought of was ABS asset securitization. According to the question you left yesterday, suppose there is a financial platform on the other side with a capital scale of 100 billion. Through lending, the interest rate is conservatively 10%, which means 10 billion a year.

At this time, we can package the 110 billion future accounts receivable and mortgage them to the bank, promising an annualized return of 5%.

Moreover, my entire assets are clear and transparent, our processes are compliant and legal, and all my clients are on my platform and you can view them at any time. Not only do I understand the cash flow of these clients, I also know that they have sufficient consumption and repayment capabilities.

The bank saw that it had lent out 100 billion at the beginning of the year and could earn 5 million including principal and interest by the end of the year. This account receivable was guaranteed by big data and endorsed by the other side, so it was very safe.

Moreover, the bank can also package the more than 100 billion yuan of debt claims, break them up and sell them to its customers as financial products. In addition to earning the interest rate difference, it can also earn management fees.

This is a business that allows the bank to earn money from both the other side and its own customers almost effortlessly, and it is legal and compliant, so the bank can rest assured in taking over this high-quality asset.

As for Bi'an, although it gave up 5 million in interest, it gained 100 billion in cash liquidity.

Then they loaned out the 100 billion yuan again and got another 100 billion yuan from the bank through ABS. Of course, there is no need to fleece just one sheep, so they could find several banks.

If it is circulated 10 or 100 times, and there is no shortage of descendants, it will reach the trillion scale you mentioned." "That is to say, this trillion loan scale, with a 10% return per year, is 1000 billion, and my principal is only 100 billion, so the return on investment is as high as 1000%?"

"Well, actually not that much. We still need to pay the interest to the bank. It's at least 500%."

"Let me give you an example. It's like a bug in a game. Using the same method to get equipment, while others are busy killing monsters to get equipment, I have already completed the full set of godly equipment?"

"The boss is wise!"

Chen Mo felt his brain itching. "Is it that simple?"

"It's easy to say, but it's also difficult to say. After all, banks also need to judge people by their appearance. Only companies like our Bi'an, which have good credit and healthy past data, and have powerful connections behind them, can play this game."

"It seems that we on the other side have complete control over the data and initiative, and the bank has become an ATM at our mercy?" Chen Mo turned the pen in his hand thoughtfully.

"To put it bluntly, it is treating the funds of banks and users as usurious assets and playing a financial nesting doll game of circular lending," Wu Dan added cautiously.

"What if we let Bi'an Finance go public now?" Chen Mo suddenly asked a heavy question.

"A financial platform with one trillion assets is going public?!" Wu Dan's eyes widened. He had only dared to think of this crazy idea when he was just daydreaming.

At this time, the expert in charge of listing-related business gave a reference answer, "Moss, Bi'an Financial will make history! It will become the world's first IPO case. Once it is successfully listed, its market value will not only exceed that of the four major domestic banks, but even JPMorgan Chase and Apple will not be rivals, becoming the world's largest company, no doubt about it!"

Chen Mo was startled when he heard this, and subconsciously wrote a number on the paper, "And our initial investment was only 100 billion?"

"Yes, 100 billion." Wu Dan confirmed, his voice trembling slightly.

The pen tapped rapidly on the table. Chen Mo frowned, "This model is too risky! As the scale of funds expands exponentially, the risks are also amplified. Once systemic risks appear..."

"The entire system collapsed like a building built of dominoes. After all, the risk of 100 billion and 08 trillion is completely different. It may lead to a global subprime mortgage crisis similar to the bankruptcy of Lehman Brothers in ."

“Then the ultimate loss”

Wu Dan nodded heavily. "Trillions of bad debts will be borne by banks and depositors, and we will lose at most the 100 billion yuan in principal."

At this moment, Chen Mo realized what someone had said at the Wuzhen Conference.

“Good innovation is not afraid of regulation, but it is afraid of being regulated in yesterday’s way.”

“The more people participate, the more we can achieve coexistence and mutual dependence.”

"Internet financial innovation is not only a subversion of traditional finance, but also a new starting point for financial services to the real economy"

“No one is an expert on the future. We should be in awe of the future, but also be bold in trying. Only by crossing the river by feeling the stones and having the courage to make mistakes can society progress.”

It turns out they are waiting here. Compared with them, Evergrande is just a younger brother.

"This old bastard!" Chen Mo couldn't help but swear. Seeing Wu Dan's surprised expression, he quickly waved his hand and said, "I'm not talking about you. Go on."

"So once the other side gets into trouble, the loophole of unlimited ABS financing and the risk transfer of joint loans may indeed trigger systemic financial risks given our current size. In response to your concerns, our team has summarized them in four words."

“Which four words?”

“It brings disaster to the country and the people.”

"very good!"

"Gah?"

"I mean, you guys have done a great job. According to this model, apart from us, who else in the market has the ability to do this? If you have a goal, squeak~"

Wu Dan seemed to know the real reason why the boss left this question. Could it be that
He guessed a possibility.
"Support" Wu Dan's voice just sounded, but Chen Mo raised his hand to interrupt, "That's good to know. Now I will assign two tasks: First, based on this model, formulate a feasible plan with controllable risks. Zhang Xiaolong!"

"exist!"

"You are in charge of WeChat. WeChat Finance's new microfinance business, 'WeChat Loan', will operate according to this model, but the scale must be controlled within a safe range. Start with 10 billion cycles 10 times. Wu Dan, you are in charge of finance and will assist."

Although I don’t know why the boss didn’t take advantage of the previous boom in Internet finance, but instead started to make plans now that major P2P platforms have collapsed.

Seeing that the boss had no intention of explaining, Wu Dan and Zhang Xiaolong followed suit.

"Second, Tianji Pavilion, based on the plan just now, give us some guiding opinions on how to avoid risks before the end of get off work tomorrow."

The next day, when Chen Mo got to work, he saw a document on his desk.
(End of this chapter)