NOVEL SIMPLE Easy Tycoon
Chapter 926 The evildoer and the outbreak of the financial crisis
Chapter 926 The evildoer and the outbreak of the financial crisis
In fact, as early as the second quarter of 2005, the real estate market in the United States had already shown unusual performance. In this quarter, the originally extremely hot real estate market began to cool down. The most direct manifestation is the stagnation of housing prices, and even some Home prices in the state have already had a faint momentum of correction.
Once house prices do start to fall, it is bound to be difficult for homebuyers to sell their homes or obtain financing through mortgages.And if this phenomenon continues, many borrowers in the subprime mortgage market will not be able to repay their loans on time, and a crisis will inevitably break out in the subprime mortgage loan market.
It’s just that the hot U.S. real estate market in the early stage blinded almost everyone’s eyes. At this point in time, no one would think that the U.S. real estate market will collapse. These people include almost all large multinational banks, investment banks, insurance, and securities companies in the world. executives.
But the collapse of the market is not based on someone's will. Although the superficial prosperity makes these large investment institutions still insist on investing large sums of money in those financial derivatives to obtain profits, secretly, an undercurrent has begun Appears faintly.
First of all, a series of weird financial events happened on Wall Street. Although no one realized at this time that this series of weird financial events would be linked to the collapse of the U.S. housing market, this series of weird financial events is an outright U.S. housing market. A harbinger of collapse!
As the saying goes, "When a country is about to perish, there must be evildoers!" This saying is equally applicable to the US real estate market.
If we regard the U.S. real estate market as a huge financial empire, then when this huge financial empire collapses, some unbelievable "monsters" will inevitably appear.
The first monster to pop up is the Amaranth Fund known as the "Flower That Never Withers".
Amaranth comes from Greek, meaning "the flower that never fades".
In September 2000, Nicholas Mounis, a Wall Street trader proficient in convertible bond transactions, established the "Flower Never Falling" Advisory LLC, also known as Amaranth Fund, in the small town of Greenwich, Connecticut, USA.
At the beginning of its establishment, the fund only had an initial capital of [-] million US dollars. At the beginning, it mainly engaged in convertible bond arbitrage transactions, and also dabbled in some other derivative transactions. It is a multi-strategy hedge fund.
By the end of 2005, the Amaranth fund had grown to $72.4 billion.
There is a "star" natural gas futures trader in the Amaranth Fund. This star trader from Canada is named Brian Hunter. He joined the Amaranth Fund from Deutsche Bank in 2004. years, specialized in natural gas futures trading.
这位亨特先生拥有丰富的天然气期货交易经验一级镇定而执著的交易风格。他在2005年9月成功抓住美国天然气价格由于卡特琳娜飓风袭击美国墨西哥湾而大幅飚升的做多机会，为Amaranth基金大赚逾10亿美元，也因此获得一笔7500万美元到1亿美元左右的年终犒赏。
Success is also Hunter, and failure is also Hunter.
Because of the sweetness in natural gas futures trading and the meager profit of convertible bond arbitrage trading, after entering 2006, Amaranth Fund continued to increase its investment in natural gas futures, using about half of its assets in natural gas futures trading.
In the first four months of 2006, Brian Hunter earned US$20 billion for the Amaranth Fund. Although he lost US$5 billion in May, Hunter earned US$10 billion back from June to August. At the end of July, Hunter said in an interview that he had "great" prospects for the profit return of speculating on natural gas futures: "The fluctuation cycle of the crude oil futures market generally takes several years, but the fluctuation cycle of the natural gas futures market is only a few months." !"
However, human calculations are difficult, and there is no "ever-victorious general" in the market! In mid-September 2006, Hunter earlier "bet" that the price of natural gas futures would continue to rise and established a huge shoulder arbitrage position of "buying NYMEX natural gas futures 9 contract while selling 0703 contract", which did not develop in the direction Hunter judged , but fell sharply. Therefore, Hunter's "heavy bet" suffered heavy losses!
On September 2006, 9, Nicholas Mounis, the founder of Amaranth Fund, suddenly sent a letter to its investors, informing them that Amaranth Fund had suffered heavy losses on its investment in energy due to an "unexpected" plunge in natural gas prices.Since Amaranth Fund is a well-known "big player" in the NYMEX natural gas futures market, the news of Amaranth Fund's loss quickly spread throughout the Wall Street financial market that day, causing a lot of shock and speculation in the market. On September 18, the "New York Times" revealed that the Amaranth Fund lost more than $9 billion in speculating on natural gas futures!
After the news of the sudden huge loss of Amaranth Fund spread, its investors, lending banks, and partners demanded that it return loans and deposits, and Amaranth was forced to liquidate its loss positions at a discounted price.
However, due to its overweight position in natural gas futures, after a large number of liquidation orders flooded into the market, the accelerated decline in futures prices aggravated the loss of its original position. By the end of September 2006, the loss of Amaranth Fund had expanded to 9 billion U.S. dollars, accounting for more than 66% of its total assets.
In the end, the Amaranth Fund capitulated and went bankrupt and liquidated.The never-fading flowers on Wall Street are slowly falling in the cold wind.
Investors who invested in Amaranth funds included Goldman Sachs, Morgan Stanley, 3M Pension Fund, San Diego National Association of Pension Funds, etc. All of these investors suffered serious losses in the end without exception.
The second monster is the well-known American alternative asset management and financial advisory services organization "Blackstone Group", also known as Blackstone Group.
Speaking of this matter, there is still a certain relationship with Huaxia.
In 2007, the newly established China Investment Corporation started its first foreign investment.At that time, CIC bought a 30% stake in Blackstone for US$9.4 billion.
At this time, Blackstone took over EOP Real Estate, which owns many commercial properties in prime locations in big cities, from Sam Zell, known as "Real Estate Buffett", with a leveraged buyout of US$390 billion.
Also at the same time, Sam Zell acquired Tribune Media Group, which owns the Chicago Tribune and the Los Angeles Times, for $83 billion.
These series of transactions seem to be flawless, but no one thought that Sam Zell had just taken over the Forum Group, and went bankrupt due to poor management, and Blackstone took over the apex of American real estate, so this investment in Blackstone In the end, it ended with a loss of 24 billion US dollars!
The appearance of these two monsters, Amaranth Fund and Blackstone Group, seems to have no necessary connection on the surface, but don't forget that the main investors of Amaranth Fund were severely damaged after Amaranth Fund declared bankruptcy!
Take a look at the main investors of Amaranth Fund, Goldman Sachs, Morgan Stanley, 3M Pension Fund, San Diego National Association of Pension Funds. These investment institutions not only invested in Amaranth Fund, but also invested heavily in the US real estate market.There is also the Blackstone Group, which also invested heavily in the US real estate market at that time!
These investment institutions that have invested heavily in speculation in the U.S. real estate market will inevitably affect their investment in the U.S. real estate market after suffering major losses in other areas.So, in a pinch, these seemingly unrelated investments failed, but led to the beginning of the collapse of the US housing market.
Starting from the second half of 2006, the US real estate market began to cool down rapidly, and the danger of the subprime mortgage crisis being detonated became greater and greater.And at the beginning of 2007, the subprime mortgage crisis was finally unbearable and was completely detonated!
In February 2007, New Century Financial, the second largest subprime mortgage company in the United States, issued a profit warning for the fourth quarter of last year. On April 2, New Century Financial declared bankruptcy due to its inability to repay debts of up to US$4 billion.
In March 2007, HSBC Holdings announced its results and added an additional US$3 billion in reserves for subprime housing loans in the United States, a total of US$70 billion, an increase of 105.73%. As soon as the news came out, the stock market fell sharply on that day, among which the Hang Seng Index It fell 33.6 points, or 777%.
On August 2007, 8, the German Industrial Bank announced a profit warning, and later estimated that there was a loss of 2 billion euros, because the "Rhineland Fund" with a scale of 82 billion euros and the bank itself participated in a small amount in the US real estate market. suffered huge losses in the primary mortgage market business.The German central bank convened the national banking industry to discuss a package plan to rescue the German industrial bank.
On August 2007, 8, American Home Mortgage Investment Corporation, the tenth largest mortgage lender in the United States, formally applied to the court for bankruptcy protection, becoming another large mortgage lender in the United States to file for bankruptcy after New Century Financial Corporation.
On August 2007, 8, Bear Stearns, the fifth largest investment bank in the United States, announced the closure of two of its funds, also due to the subprime mortgage crisis.
On August 2007, 8, France's largest bank, BNP Paribas, announced that it would freeze three of its funds, which also suffered huge losses from investing in US subprime mortgage bonds.The move sent European stock markets tumbling.
On August 2007, 8, Mizuho Group, the parent company of Mizuho Bank, the second largest bank in Japan, announced a loss of 13 million yen related to the US subprime mortgage.Banks in Japan and South Korea have suffered losses due to the US subprime mortgage crisis.According to estimates by UBS Securities Japan, the nine major banks in Japan hold more than one trillion yen in US subprime mortgage-backed securities.
其后花旗集团也宣布，2007年7月份由次贷危机引起的损失达7亿美元，并最终引发了花旗银行的股价在短短半年时间内由23美元/股跌至3美元/股，市值缩水90%
A series of bad news stunned the United States and the whole world, and the US subprime mortgage crisis inevitably turned into a financial crisis that spread to the whole world.
The United States and Freddie were managed by the U.S. government, Bear Stearns, the fifth largest investment bank in the United States, was acquired by the Communist Party at a price of 2.36 million U.S. dollars, Merrill Lynch was acquired by Bank of America, and Lehman Brothers died completely.
In particular, the collapse of Lehman Brothers, whose total assets were as high as 7000 billion U.S. dollars at that time, directly detonated a global economic crisis!
(End of this chapter)
In fact, as early as the second quarter of 2005, the real estate market in the United States had already shown unusual performance. In this quarter, the originally extremely hot real estate market began to cool down. The most direct manifestation is the stagnation of housing prices, and even some Home prices in the state have already had a faint momentum of correction.
Once house prices do start to fall, it is bound to be difficult for homebuyers to sell their homes or obtain financing through mortgages.And if this phenomenon continues, many borrowers in the subprime mortgage market will not be able to repay their loans on time, and a crisis will inevitably break out in the subprime mortgage loan market.
It’s just that the hot U.S. real estate market in the early stage blinded almost everyone’s eyes. At this point in time, no one would think that the U.S. real estate market will collapse. These people include almost all large multinational banks, investment banks, insurance, and securities companies in the world. executives.
But the collapse of the market is not based on someone's will. Although the superficial prosperity makes these large investment institutions still insist on investing large sums of money in those financial derivatives to obtain profits, secretly, an undercurrent has begun Appears faintly.
First of all, a series of weird financial events happened on Wall Street. Although no one realized at this time that this series of weird financial events would be linked to the collapse of the U.S. housing market, this series of weird financial events is an outright U.S. housing market. A harbinger of collapse!
As the saying goes, "When a country is about to perish, there must be evildoers!" This saying is equally applicable to the US real estate market.
If we regard the U.S. real estate market as a huge financial empire, then when this huge financial empire collapses, some unbelievable "monsters" will inevitably appear.
The first monster to pop up is the Amaranth Fund known as the "Flower That Never Withers".
Amaranth comes from Greek, meaning "the flower that never fades".
In September 2000, Nicholas Mounis, a Wall Street trader proficient in convertible bond transactions, established the "Flower Never Falling" Advisory LLC, also known as Amaranth Fund, in the small town of Greenwich, Connecticut, USA.
At the beginning of its establishment, the fund only had an initial capital of [-] million US dollars. At the beginning, it mainly engaged in convertible bond arbitrage transactions, and also dabbled in some other derivative transactions. It is a multi-strategy hedge fund.
By the end of 2005, the Amaranth fund had grown to $72.4 billion.
There is a "star" natural gas futures trader in the Amaranth Fund. This star trader from Canada is named Brian Hunter. He joined the Amaranth Fund from Deutsche Bank in 2004. years, specialized in natural gas futures trading.
这位亨特先生拥有丰富的天然气期货交易经验一级镇定而执著的交易风格。他在2005年9月成功抓住美国天然气价格由于卡特琳娜飓风袭击美国墨西哥湾而大幅飚升的做多机会，为Amaranth基金大赚逾10亿美元，也因此获得一笔7500万美元到1亿美元左右的年终犒赏。
Success is also Hunter, and failure is also Hunter.
Because of the sweetness in natural gas futures trading and the meager profit of convertible bond arbitrage trading, after entering 2006, Amaranth Fund continued to increase its investment in natural gas futures, using about half of its assets in natural gas futures trading.
In the first four months of 2006, Brian Hunter earned US$20 billion for the Amaranth Fund. Although he lost US$5 billion in May, Hunter earned US$10 billion back from June to August. At the end of July, Hunter said in an interview that he had "great" prospects for the profit return of speculating on natural gas futures: "The fluctuation cycle of the crude oil futures market generally takes several years, but the fluctuation cycle of the natural gas futures market is only a few months." !"
However, human calculations are difficult, and there is no "ever-victorious general" in the market! In mid-September 2006, Hunter earlier "bet" that the price of natural gas futures would continue to rise and established a huge shoulder arbitrage position of "buying NYMEX natural gas futures 9 contract while selling 0703 contract", which did not develop in the direction Hunter judged , but fell sharply. Therefore, Hunter's "heavy bet" suffered heavy losses!
On September 2006, 9, Nicholas Mounis, the founder of Amaranth Fund, suddenly sent a letter to its investors, informing them that Amaranth Fund had suffered heavy losses on its investment in energy due to an "unexpected" plunge in natural gas prices.Since Amaranth Fund is a well-known "big player" in the NYMEX natural gas futures market, the news of Amaranth Fund's loss quickly spread throughout the Wall Street financial market that day, causing a lot of shock and speculation in the market. On September 18, the "New York Times" revealed that the Amaranth Fund lost more than $9 billion in speculating on natural gas futures!
After the news of the sudden huge loss of Amaranth Fund spread, its investors, lending banks, and partners demanded that it return loans and deposits, and Amaranth was forced to liquidate its loss positions at a discounted price.
However, due to its overweight position in natural gas futures, after a large number of liquidation orders flooded into the market, the accelerated decline in futures prices aggravated the loss of its original position. By the end of September 2006, the loss of Amaranth Fund had expanded to 9 billion U.S. dollars, accounting for more than 66% of its total assets.
In the end, the Amaranth Fund capitulated and went bankrupt and liquidated.The never-fading flowers on Wall Street are slowly falling in the cold wind.
Investors who invested in Amaranth funds included Goldman Sachs, Morgan Stanley, 3M Pension Fund, San Diego National Association of Pension Funds, etc. All of these investors suffered serious losses in the end without exception.
The second monster is the well-known American alternative asset management and financial advisory services organization "Blackstone Group", also known as Blackstone Group.
Speaking of this matter, there is still a certain relationship with Huaxia.
In 2007, the newly established China Investment Corporation started its first foreign investment.At that time, CIC bought a 30% stake in Blackstone for US$9.4 billion.
At this time, Blackstone took over EOP Real Estate, which owns many commercial properties in prime locations in big cities, from Sam Zell, known as "Real Estate Buffett", with a leveraged buyout of US$390 billion.
Also at the same time, Sam Zell acquired Tribune Media Group, which owns the Chicago Tribune and the Los Angeles Times, for $83 billion.
These series of transactions seem to be flawless, but no one thought that Sam Zell had just taken over the Forum Group, and went bankrupt due to poor management, and Blackstone took over the apex of American real estate, so this investment in Blackstone In the end, it ended with a loss of 24 billion US dollars!
The appearance of these two monsters, Amaranth Fund and Blackstone Group, seems to have no necessary connection on the surface, but don't forget that the main investors of Amaranth Fund were severely damaged after Amaranth Fund declared bankruptcy!
Take a look at the main investors of Amaranth Fund, Goldman Sachs, Morgan Stanley, 3M Pension Fund, San Diego National Association of Pension Funds. These investment institutions not only invested in Amaranth Fund, but also invested heavily in the US real estate market.There is also the Blackstone Group, which also invested heavily in the US real estate market at that time!
These investment institutions that have invested heavily in speculation in the U.S. real estate market will inevitably affect their investment in the U.S. real estate market after suffering major losses in other areas.So, in a pinch, these seemingly unrelated investments failed, but led to the beginning of the collapse of the US housing market.
Starting from the second half of 2006, the US real estate market began to cool down rapidly, and the danger of the subprime mortgage crisis being detonated became greater and greater.And at the beginning of 2007, the subprime mortgage crisis was finally unbearable and was completely detonated!
In February 2007, New Century Financial, the second largest subprime mortgage company in the United States, issued a profit warning for the fourth quarter of last year. On April 2, New Century Financial declared bankruptcy due to its inability to repay debts of up to US$4 billion.
In March 2007, HSBC Holdings announced its results and added an additional US$3 billion in reserves for subprime housing loans in the United States, a total of US$70 billion, an increase of 105.73%. As soon as the news came out, the stock market fell sharply on that day, among which the Hang Seng Index It fell 33.6 points, or 777%.
On August 2007, 8, the German Industrial Bank announced a profit warning, and later estimated that there was a loss of 2 billion euros, because the "Rhineland Fund" with a scale of 82 billion euros and the bank itself participated in a small amount in the US real estate market. suffered huge losses in the primary mortgage market business.The German central bank convened the national banking industry to discuss a package plan to rescue the German industrial bank.
On August 2007, 8, American Home Mortgage Investment Corporation, the tenth largest mortgage lender in the United States, formally applied to the court for bankruptcy protection, becoming another large mortgage lender in the United States to file for bankruptcy after New Century Financial Corporation.
On August 2007, 8, Bear Stearns, the fifth largest investment bank in the United States, announced the closure of two of its funds, also due to the subprime mortgage crisis.
On August 2007, 8, France's largest bank, BNP Paribas, announced that it would freeze three of its funds, which also suffered huge losses from investing in US subprime mortgage bonds.The move sent European stock markets tumbling.
On August 2007, 8, Mizuho Group, the parent company of Mizuho Bank, the second largest bank in Japan, announced a loss of 13 million yen related to the US subprime mortgage.Banks in Japan and South Korea have suffered losses due to the US subprime mortgage crisis.According to estimates by UBS Securities Japan, the nine major banks in Japan hold more than one trillion yen in US subprime mortgage-backed securities.
其后花旗集团也宣布，2007年7月份由次贷危机引起的损失达7亿美元，并最终引发了花旗银行的股价在短短半年时间内由23美元/股跌至3美元/股，市值缩水90%
A series of bad news stunned the United States and the whole world, and the US subprime mortgage crisis inevitably turned into a financial crisis that spread to the whole world.
The United States and Freddie were managed by the U.S. government, Bear Stearns, the fifth largest investment bank in the United States, was acquired by the Communist Party at a price of 2.36 million U.S. dollars, Merrill Lynch was acquired by Bank of America, and Lehman Brothers died completely.
In particular, the collapse of Lehman Brothers, whose total assets were as high as 7000 billion U.S. dollars at that time, directly detonated a global economic crisis!
(End of this chapter)
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