Manhattan Reborn 1978

Inside the Bonini restaurant.

Lewis sat on the chair feeling frustrated.

Pine, Giles and Andy all looked at David and waited for him to continue explaining.

But David didn't want to steal Lewis Ranieri's idea.

Because this MBS derivative was originally thought up and developed by him.

David was not sure whether Lewis had taken it out before, until he rummaged through Stanley's data room at noon today, from the pension fund's release of restrictions, and from his conversation with Ben Likert, After confirming each other, they confirmed their guesses.

MBS itself is a financial product created by the financial elites on Wall Street on a whim, aiming to enhance the liquidity of mortgage assets and increase the ability of financial institutions to issue personal loans.

And what Lewis came up with was rmbs.

RMBs refers to the bank's design of asset packages (pools) of selected personal housing mortgage loans, and transfers each loan and its affiliated security interests in the asset package to the trustee, who then uses the asset-backed securities as "asset-backed securities". Issue income securities in the form of asset-backed securities and pay the income from the asset-backed securities with the cash generated by the assets.

Simply put, it can securitize precipitated and steadily growing assets into liquid and tradable assets for cash out.

This innovation proposed by Lewis was continuously used by Wall Street elites in dazzling ways over the next 20 years.

They include: automobile consumer loans, student loans, commercial, agricultural, and medical property mortgage loans, credit card receivables, trade receivables, equipment leasing, infrastructure charges, ticket revenue, club dues revenue, and small and medium-sized enterprise loans , intellectual property rights, etc., all have been securitized!

Capital is profit-seeking!

As long as it is a profitable business, people on Wall Street will never let go of any opportunity.

A few years later, Wall Street elites studied and completed the complete application system of complex asset-backed securities after RMBs.

Throughout the 80s, asset-backed securities (abs) have become an emerging financing investment tool in the United States.

ABS specifically means: using the assets of a certain target project to generate independent and identifiable future income (cash flows and accounts receivable) as collateral (financial guarantee), which are issued in the international capital market with a fixed A method of financing international projects using high-grade bonds with high yields to raise funds.

ABS is widely accepted and recognized because it has more advantages than other securitization products.

amount. .

Well, regarding ABS, we will talk about it later.

----

David simply explained to Pine and others some of the differences between MBS and RMBs, as well as the future development prospects of RMBs.

"RMBs, it is a financial product tailor-made for pension funds that have lifted investment restrictions."

"We all know that more than [-]% of people who buy houses now have ordinary mortgage loans."

"And for banks that issue housing loans, they have a fixed interest rate, 20-30 years of repayment, and small monthly repayments, which is simple and safe."

"Extremely boring, nothing new~!"

"These accumulated and steadily growing assets will eventually be lost to inflation over time, making the capital flow in the hands of these banks that issue loans increasingly tight."

"But if we package hundreds or thousands of mortgages and design a high-quality collective asset package for personal mortgages and housing loans, the rate of return will increase, but the risk will remain very small."

"Because the assets we packaged are mortgages. Who would be crazy not to repay their mortgages?"

"Even if some people are unable to repay their loans due to various reasons, the bank that issued the loan can legally get back the money that belongs to the bank based on the loan contract."

"Therefore, RMBs will definitely become one of the must-select investment projects for stable investment funds in the future."

"Lewis, I assume you contacted the securities rating company after you came up with this idea?"

"How do they evaluate your project?"

Lewis, who had always lowered his head, slowly adjusted his mood after listening to David's explanation to several people.

"Standard & Poor's and Moody's both give securities ratings of AAA."

Giles muttered in disbelief: "Level 3a?"

"Is that at the same level as the U.S. Treasury bond?"

"Lewis, is the rating material you submitted now in your hands, or is it in Salomon Company?"

Pine next to him pressed Giles, who wanted to continue talking, with his hand to calm him down.

He looked at Lewis: "We are very interested in RMBs. I wonder if you have told others about it? Or if Salomon has already started to acquire high-quality, Is it suitable for packaged housing loans?”

Lewis adjusted his glasses, hesitated for a while and shook his head, saying nothing.

He didn't say anything, just shook his head, which actually answered Pine's question.

Salomon Company should not have started operating this project yet.

This rmbs should still be in the planning stage on paper.

Pine glanced at David and Giles: "Lewis, we would like to invite you to join Morgan Bank. I will personally discuss your position with the board of directors and ask you to lead a team, mainly responsible for the specific operation of the RMBS project. , your annual salary can increase by 35%, and the bonus will be very generous. How about you consider my proposal?"

Pine added at the end: "Of course, if you have your own team, you can also bring them all over. The conditions I just mentioned remain unchanged."

David smiled and gave Pine a thumbs up to recruit Lewis. Even if Pine didn't do it, he would take the initiative to speak.

Regardless of how much Lewis' role can be played in the future, at this stage, Lewis, the father of RMBs, is the best person who knows best and is most likely to realize it smoothly.

After Lewis heard the conditions given by Pine, he continued to lower his head and remained silent. If he said he was not moved, he would be lying to himself!

This year, his Salomon company has a new leader. The old Bill Salomon retired after his retirement, and 48-year-old John Gutfreund succeeded him as the new head of Salomon.

This John Gutfreund joined Salomon in 1953 and quickly rose to prominence in the bond trading center. He became a partner of the company in 1963.

In the years since Lewis joined Salomon, he has had several conflicts with Gutfreund. The most intense one was last year when Gutfreund intervened and interfered in one of Lewis's investment operations, which later led to the investment failure. Failure, loss.

Gutfreund was a senior executive of the company, and he admitted that he had been fined some money, and after being given a few warnings, the incident was over.

And what about Lewis?

Not to mention being fined for the whole year's bonus, this year's annual salary contract has been reduced by 20%!

Lewis can't bear this ****!

But Lewis had no way out, because he couldn't find a company where he could change jobs, which made Lewis an ostrich with his head buried in Salomon Company.

The original idea of ​​the rmbs project was proposed by Lewis in 76.

At the time, no one thought the project would pass muster with securities rating companies.

result. . .

AAA rating!

This rating result shocked countless people!

Because of this 3A rating, Lewis was again valued by some senior executives of Salomon Company, but none of this could solve Gutfreund's bad impression of Lewis.

The conditions given by Pine now caused Lewis to start a struggle in his heart. Should he jump or not?

this is a problem!

"Mr. Pine, I want to go back and consider your invitation. I will definitely give you an answer tomorrow. Do you think this is okay?"

"No problem Lewis, you can take note of my office number... I will be in the office after eight o'clock tomorrow morning and before noon, waiting for your call."

"Thank you, Mr. Pine!"

"Gentlemen, I will go back first. I hope you all have a good time tonight~"

"Nice to meet you, Mr. David Coleman!"

Lewis held David's hand and his voice was powerful.

"Okay, goodbye Lewis!" David responded with a smile.

Lewis walked cleanly and without any sloppiness.

What his final decision was actually didn't matter to Pine.

David's performance today made Pine's understanding of him somewhat blurry.

"David, how did you come up with these ideas about rmbs?"

Giles and Andy also looked at David curiously.

David's nickname "Lucky Boy" is now used by fewer and fewer people.

With his wonderful performances time and time again, he proved to everyone that it is impossible to complete the company's development plan just by relying on luck, not to mention the whimsical ideas and ideas he came up with.

How did you come up with it?

Looking at David sitting in the chair with Erlang's legs weak, he rubbed the stubble on his chin back and forth with his right index finger.

There was no way he could tell Pine and the others, he just saw it from watching a movie~

So how should we answer this question?

Um. .

If you don’t know how to answer, then you won’t answer.

He changed the subject and said: "Giles, when is your father coming to New York next month? It happens to be the rmbs project, and I want to talk to him about it."

Giles tilted his head and thought for a moment: "He only said it was at the beginning of the month. I will come to New York at the beginning of next month. If there is a specific date, I may need to ask again."

"Okay, but Lewis just said that Salomon has rated mortgage securities. They are already a small step ahead. If we want to make money on this mortgage security, we need to speed up our preparations."

"Pine, do you have any friends at Fannie Mae and Freddie Mac?"

Pine nodded: "You mean we can buy mortgage contracts from these two companies, form an asset package ourselves, and then sell it?"

"Of course, there is an upper limit for 3A-rated mortgage securities in China. We need to first get the best mortgage contracts, form our own asset package, and then bring it to the market and sell it to pension funds in various states. When used as a sound investment, this is a big deal.”

"With luck and proper execution, Morgan Bank will be able to add a significant amount of revenue to this year's financial statements before the end of the year."

Pine shook his head helplessly and said, "Even if we can get more advantageous contracts first, if we want to take them and sell them as asset packages, we will become the target of countless jealous people. Yes, we need to find partners, many partners, to make this pie bigger and bring in everyone who is qualified to share the pie into this business.”

"Okay! You are a professional in this area, just make the decision~"

Pine is right, Fannie Mae and Freddie Mac themselves are among the assets of multiple companies and consortiums.

Not to mention there are several authoritative rating agencies, which also have complete mortgage securities rating materials.

On Wall Street, if you want to make money legally, the first thing to do is to let your peers know what you are planning as late as possible, so as to reduce the number of people sharing the cake.

But this time, it's different.

No one can completely capture this huge capital market of thousands or trillions.

People like David and Lewis, who were the first to discover market opportunities, may have become wedding dresses for those big capitalists in the end.

Lewis was surprised and frustrated just now, not because the secret of the project was discovered, but because he believed that Giles and Pine were telling the truth. David really guessed and thought of rmbs by himself, instead of relying on The Morgan family got the news from Salomon Company.

This was also one of the important reasons why he did not agree to Pine's invitation on the spot.

Lewis has a very clear understanding of himself.

He is very self-aware of his own abilities and worth.

The conversation tonight allowed him to make some judgments about the future of David Coleman.

There are many consortiums in the United States, but currently there is only one, David Boy.

So is he going to join Morgan Bank, or is he going to cling to David Boy, the foreseeable future tycoon?

He needed to give himself a night to think about it.

Giles, who was very active just now, suddenly became silent.

David didn't know what this kid was thinking about, so he patted his good friend on the shoulder: "You and Pine chat first, and I'll go and finish talking about the DA security company with Ludy and Cohen."

After saying that, he pulled the smiling Andy to a corner of the restaurant: "Andy, with our company's current funds and loans, can we realize these plans I have today within two years?"

"Well... I mean, do you think the plans I talked about during the meeting at Stanley this afternoon are feasible?"

Andy looked at David, who had a worried face, and felt speechless for a while.

During the meeting in the afternoon, this guy didn't ask this question, and made a pretty statement about the company's development plan for the next two years.

Only now do I think of asking whether the money is enough?

hehe~

He smiled and clinked glasses with David.

"$2 can buy a hot dog and fill your stomach."

"One dollar can also buy bread and fill your stomach."

"The key is to see whether there will be deviations during the execution of your company's plan."

"The financial budget, it's just a piece of paper on paper."

"If the three centers you mentioned in the afternoon do not require our company to invest too much money, I think your two-year development plan is no problem based on the company's existing funds and loans."

David drank the wine in the glass: "Is that so? Okay. I will find a way to reduce the initial investment of the three centers. Thank you Andy."

"It's okay. Go find Ludy and the others. I just saw that Ludy has been looking at us. He should be unable to sit still."

"Okay, tell Rhett for me. After I finish working these days, I will go to the Wildfire Bar to have a good drink with him."

"When the time comes, you and Sally will also come together!"

Andy smiled and nodded: "Okay, let's go!"

Laura sat quietly at the dining table with Lilith, and the two of them always paid attention to the conversations of people in the restaurant.

Her eyes turned from Giles to David: "Lilith, I will go to Yale University in a few days, will you come to see me?"

Lilith sipped a small piece of fruit: "Of course, but don't you wait until early October to leave?"

"No, apart from Giles and David, there is nothing else I can do emotionally here in New York."

Lilith's hand paused for a moment, and then she whispered: "Then I will go to Yale with you!"

Laura turned to look at Lilith: "You don't need to be like this, we are just going to be separated for a while, New York, I will still come back."

"Ok!"

There was another silence between the two.

David walked to a waiter carrying drinks, got himself a glass, then walked to Ludy and sat down slowly.

He had drank a lot today, and now he was starting to get a little drunk.

"Ludy, how was your chat?"

Everyone looked at Richie with a smile, and Ludi said: "David, Richie has contacted his old superior when he was working at DEA. Regarding our cooperation with DEA, he plans to find time to come to New York in the next few days. Let’s meet and talk.”

"Um... In other words, can this matter be done?"

"Of course!"

David looked at Cohen and Rambo: "What about our security company? Cohen, do you have any ideas about the development plan for the next two years?"

Cohen shook his head and said: "I have no objection to the company's development plan and will fully cooperate with Ludy."

"However, in terms of mercenaries and intelligence personnel, I still have some acquaintances and friends who I would like to introduce to our company. They are all good players and are fully qualified for the work of our company..."

David glanced at Rambo, waved his hand and said: "You can take care of these things first. As long as you think they are suitable, you can recruit them first. After Lawrence comes back, the two of you will hand over some affairs, and then Just help Ludy manage the security company."

"Okay! Then I have no problem!"

"Okay, Rich, if you have any news, please inform Ludy. We will meet your old superior together then."

"Okay~ Ludi gave me the number just now."

David smiled and clapped his hands: Ludy, don’t forget to ask the boss to give the bill to Giles. "

"The time is just right, let's go to the nightclub and have fun together~"