Chapter 305 (1/2)

”Zheng, did you really speculate in stocks? I remember they said you were a millionaire and made hundreds of thousands of dollars when you came to America -- ”

When manionton shouted with little stars on her face, Zheng Jianguo had to smile at the adoring sister.

However, Zheng Jianguo's attention is still focused on the TV. To be exact, it is what the TV host is saying loudly: ”just so, in addition to major banks and exchanges, there are only overseas investors represented by overseas oil kings who can absorb the shares of two oil companies on such a scale.

Only since the outbreak of the harant family's speculation in silver at the beginning of the year, the major trading commissions have been very strict with overseas investors -- ”

”Well, it seems that there is really no leveraged buyout case?”

A strange idea suddenly flashed through his mind. Zheng Jianguo fell into a dull state when he looked at the host on TV.

Zheng Jianguo certainly didn't know that before he did this, that is, in the 10 years of the 1970s, the word leveraged buyout was not well known to the public. The main reason was that there were not many people and institutions willing to borrow money: ”what if you lose?”

Leveraged buyout is a formal saying. The commonly known financing M & A and debt operation M & A are more vivid and more understandable. It means that companies or individuals use the assets of the acquisition target as debt collateral to achieve the strategy of acquiring the target company.

To put it more vividly, Zheng Jianguo, who is short of $2.4 billion to buy 10% of the shares of the two oil companies, can mortgage the purchased shares to the bank when he has only $1 billion. After lending $700 million, he can mortgage the purchased shares to the bank at the market value - after so many rounds of operation, he has completed the purpose of borrowing money to receive shares.

However, the reality is that it's easy to say that this transaction has earned money, but considering that you have borrowed money to buy the company's shares, what should you do if the company's shares you bought have not appreciated and the borrowed money can't be repaid?

Therefore, the premise of doing so is that the shares of the two oil companies will rise.

Otherwise, after Zheng Jianguo holds a 10% stake, he still owes the bank $2.4 billion.

Now the stock market has an unimaginable dark psychology about this phenomenon. The oil field reserves of the two oil companies exceed 2.6 billion barrels. When the price of the latest oil contract is 33 dollars and 69 cents per barrel, how can the market value be above 80 billion——

But the fact is that after Charlie absorbed 3.4% of the shares worth $1 billion for three consecutive days, he only pulled its market value from the previous $34 billion to the price of $37.5 billion, an average increase of more than 800 million points a day.

Charlie was still working on Wall Street in New York, but Zheng Jianguo was surprised by what he thought. Then he worked late at night after work and found that the leveraged buyout that had matured in the stock market in his memory had not been recognized by the market at the moment.

The familiar leveraged trading in the futures market has not been accepted by the stock market. Zheng Jianguo intuitively seems to have found a great thing again. The futures market can charge handling fees because leverage enlarges the handling fees at the same time.

The reason why the stock market can operate in this way is that borrowing money needs to pay interest. According to the agreement of Zheng Jianguo and Charlie, the interest of 19% is almost one-fifth. After borrowing 2.4 billion, even if it is returned on time, it will have to pay the principal and interest of 2.856 billion.

”If there is no good investment channel in the future, it is also good to release the money in this way, which can just let the asset management company have something to do -”

”It's just 24% of the long-term loan interest, which is a bit tricky -”

Remembering the loan interest rate comparable to usury in the United States, Zheng Jianguo observed a few minutes of silence for the majority of the American people. Now the imported inflation in the United States is serious. Of course, this inflation is not unique to the United States. The sharp rise in oil, the king of global commodities, has directly and fundamentally led to the rise in the cost of various raw materials.

However, no matter what enterprises produce, the rise of logistics costs will apportion the costs to products, which is the origin of the saying that wool comes from sheep. Now, with the rise of oil, central banks around the world have offered a response - raising interest rates.

Therefore, as early as the beginning of 1980, the major developed countries in the world raised their interest rates a lot. Britain and the United States increased their interest rates the most, from 9% to 17%, and other developed countries increased their interest rates by about 5.5%. Even Japan, which is not in line with international standards, increased its capital from 3.5% to 9%.

Such a high interest rate has prompted Zheng Jianguo's previous idea of throwing money into the bank to eat interest. After all, the consequences of setting up a company and paying great energy to manage are not as high as the interest money. The annual return of 20% is also risky.

However, as the largest capitalist country in the world, American banks collect so much money, but they also want to invest it to produce value.

After all, I just said that wool comes from sheep. As the spokesperson of capital in the world, bankers can eat anything. As long as they make money, they can even eat shit, but they suffer losses——

Of course, when the interest rate is so high, Zheng Jianguo also has a string in his mind. Banks in capitalist countries will fail, so don't mention all kinds of messy companies. Don't lend money and take back a company at that time, so this idea is just wandering in his mind.

”Just from today on, I want to be a debtor -”

Thinking that Charlie had started buying stocks with the borrowed money, Zheng Jianguo flashed the idea before falling asleep that day, which gave rise to his naive understanding of his previous idea: ”I've decided not to be in debt to speculate in stocks and futures in the past - but this opportunity is too rare?”

Facing the pie that seemed to fall from the sky, Zheng Jianguo's previous insistence was immediately convinced by himself. Therefore, after having a dream, he easily cleaned it up the next morning. Before he arrived in the emergency room in Plymouth, the pager in his waist rang: ”didi -”

”Well --”

Subconsciously picked up his pager and looked at it. Zheng Jianguo found that it was the news from the emergency room. He didn't want to see the dark shadow in the corner of his eyes at this time. He raised his foot and stepped on the brake. When the whole person was almost thrown out by the huge centrifugal force, the harsh brake sound spread: ”Zhi --”

”Bang -”

As Zheng Jianguo didn't have time to scold the escaping bike, a loud noise came along with the huge shock of the body. He knew that he had been licked by someone, so regardless of the scolding bicycle rider, he turned his head and looked behind him. He saw a white airbag in front of the driver's seat of the rear car——

”Fark oil, how do you drive!”

Outside the window of the rear car, the blonde girl looked fierce. Although Zheng Jianguo knew he was distracted, he now knew that the other party was the first to blame. It's just that he didn't keep the distance from the car and hit me. Now he still swears?