"The US$700 billion bailout bill is passed, and the world has entered the post-Lehman era."

"The government is now paying for Wall Street tycoons, but it turns a blind eye to the losses of ordinary Americans. The United States does not have $700 billion, which is taxpayers' money. This is simply robbery."

On the morning of October 3, the George W. Bush administration officially announced the passage of a US$700 billion bailout bill, which includes measures including but not limited to directly providing bailout funds to banks, increasing the statutory maximum limit on national debt, and purchasing illiquid market bonds.

The situation in the bond credit market has stabilized slightly, and the prices of CDS contracts sold by major financial institutions on the market have risen in response.

That day, after finishing class in the morning, Li Zhiyi asked Henry to have afternoon tea and sell all the CDS contracts he held.

In a club restaurant located in the Flatiron District of Harmonton, Li Zhiyi and Henry sat opposite each other. The table in front of them was filled with various drinks and pastries.

"It looks very rich. What is this black thing? It looks so ugly." Li Zhiyi started the conversation casually.

Henry explained in a good mood: "When you make money, you naturally want to be extravagant. Black pudding seems to be made of pig blood. British people eat ugly food, but it tastes pretty good."

"I also think so, what's so good about Emma Watson, her face is covered with freckles."

Li Zhiyi was also in a good mood and joked that making money is definitely the most effective way to adjust his mood, bar none.

"Emma is not British. Her grandmother is French. She was born in Paris, France. She is only three-quarters British." Henry retorted unhappily.

This guy grew up watching "Harry Potter". Emma Watson is his goddess and cannot be slandered.

Li Zhiyi said with a smile: "But I remember you said that she is British, grew up in Oxfordshire, and is a native British girl."

"...Farke, why don't I remember what I said? Well, Britain is actually quite good. They helped us build our country." Henry behaved like a boy in the rice circle.

Li Zhiyi laughed mercilessly, and then got down to business: "Come on, let's talk about Anglo-American friendship later, we should talk about money-related topics now."

"OK, let's get started." Henry stopped smiling when he got down to business.

Li Zhiyi plugged his phone into the earphones, each with one ear in his ear, and then dialed the number of a Goldman Sachs trader.

CDS trading is an over-the-counter transaction, that is, there is no centralized trading place. Buyers and sellers mainly conduct transactions through telephone and trading software. At this time, electronic trading has not yet been fully popularized, and telephone trading is the mainstream.

This kind of OTC trading is not limited to CDS, but is the case for many credit bond businesses.

"Hello Mr. Li, how can I help you?"

The call was quickly answered, and the trader asked politely.

Li Zhiyi explained straightforwardly: "I want to sell the two CDS contracts I hold, one issued by Goldman Sachs with a nominal value (compensation value) of 57 million, and one issued by Morgan Stanley with a nominal value of 127 million."

“Do you want to sell them separately or as a package?”

"respectively."

The 127 million contract was bought by Li Zhiyi himself after making money from shorting AIG. The 57 million contract had Henry's 30% profit share, so it needed to be sold separately.

"Okay, let's first talk about how much do you want to sell a CDS contract with a nominal value of 57 million?"

"45 million."

"This is too expensive, 30 million, the highest price on the market."

"39 million." Li Zhiyi re-quoted the price.

Over-the-counter transactions are based on negotiated pricing. Buyers and sellers have to wield dragon-slaying knives and slash at each other wildly, demanding high prices while sitting on the ground and bargaining, which is no different from buying vegetables in a wet market.

"35 million, because of our many cooperations."

Li Zhiyi didn't look back at Henry immediately this time, and Henry nodded slightly to indicate that it was okay.

Li Zhiyi thought for a moment and replied: "38.5 million."

There was also silence on the other end of the phone for a few seconds: "Deal."

Hearing this, Henry's face blossomed into a smile, he made a silent "yeah" gesture, took off his earphones, stood up and left the dining table, leaving Li Zhiyi to discuss the second deal alone.

The second transaction was negotiated very quickly. Li Zhiyi and the trader tacitly agreed to omit testing and directly quoted the lowest price. In the end, the 127 million nominal value CDS contract was sold for 85 million.

After deducting the 11.55 million needed to pay Henry from the two transactions, Li Zhiyi made a total profit of US$112 million.

After hanging up the phone, Li Zhiyi felt a little disappointed. He had spent more than a year since his rebirth in a tepid manner, until the financial crisis occurred, and he became a billionaire in just a dozen days.

This feeling of being tied to a rocket and flying is not bad, but what is the concept of 100 million US dollars? Li Zhiyi is a little curious about this.

A few minutes later, Henry returned to his seat with two tightly wrapped wooden boxes: ""A perfect deal, well done! We should have had something to celebrate when we won the big win, but the waiter here would obviously stop us,

Take it back and drink it."

"What kind of wine is this?" Li Zhiyi asked.

Henry had a guilty conscience and looked around furtively: "Keep your voice down, there's a 1998 Screaming Eagle and a 90-year-old Petrus."

Li Zhiyi's eyelids twitched: "You will be beaten to death by your father."

Petrus is the leading winery on the right bank of Bordeaux. Five or six bottles of Lafite can buy one bottle of Petrus of the same vintage. It is comparable to Nanfu Energy Concentrator, and one session is better than six.

As for Screaming Eagle, this winery has a lesser but more exaggerated reputation. If we only look at the price, it is no match for the Bordeaux Left Bank winery.

These two bottles of wine cost more than 100,000 US dollars, and even if you have money, you can't buy them.

"My dad agreed. In fact, he asked if he wanted to give you anything else. Do you want any gifts?" Henry, the foolish son of a landowner, showed his aura.

The profit of more than 10 million US dollars is not a small amount, and the most important thing is the rate of return. The 8 times rate of return and the ability demonstrated by Li Zhiyi are worth spending money to make a deal with.

In other words, Henry didn't understand Chinese culture, otherwise he would have to replace the face of the God of Wealth with Li Zhiyi and make a memorial tablet for him.

"I want an accountant." Li Zhiyi replied speechlessly.

"Accounting?"

"Your share needs to be calculated and taxed, which is a bit troublesome."

Henry didn't answer when he heard this and asked something else: "What are you going to do next?"

"Short stock index, I currently have a large amount of funds, and I also need to make other investments, so I can't do it with you." Li Zhiyi replied frankly, paused and stopped the topic: "If things go well, I will probably do it next year.

If we set up a fund, it won’t be too late for us to cooperate.”

"And until next year the market has nothing to say, short, short, short."

Li Zhiyi's current capital size is indeed not suitable for taking Henry with him, and the eight-fold return is still within the acceptable range of the public. As far as he knows, there is a buddy in the UK who has made eight times the return by taking advantage of the US 700 billion bailout plan.

But if the rate of return is so high every time, then there will be trouble. Whether it is to say that the man is not guilty and to have the jade in his possession, or to shoot him in the first place, it is easy to kill someone if you play the interest-binding scheme now.
Chapter completed!