Chapter 756 This Pie Is so Delicious

Everyone wants to buy good things, but the market needs to rely on investment to preserve value, and the capital of retirement and pension funds that outperform inflation, even if it exceeds 100 billion, is rare.

Based on the 242 million population of the United States in 1973, the minimum estimate of the retired population over the age of 60 is more than 2,420.

There are 242 billion US dollars per capita of 10,000 US dollars.

But this figure is definitely the most conservative estimate. The reason is very simple. The debt ratio of the United States in 1970 was only 7%.

In 1973, it was only 10.3%.

In other words, if half of the retired population owns fixed assets and deposits, not to mention 50,000 or 100,000 assets.

$30,000 is still available.

300 billion pension and retirement funds are looking for investment projects in the market, and the intensity of competition can be imagined.

So, everyone will grab those high credit rating bonds, but what if you can't grab them?

Or just grab a part of the funds managed by the fund, where do you invest the rest?

And for the management of retirement and pension funds, their primary goal is not to earn 10%, 30%.

It is 5% of the 3A-level stable income comparable to national debt.

Even for the commission and salary of next year and the year after, the management of retirement and pension funds will take the initiative to lower the income of the fund.

In order to prevent customers from being stimulated by high returns, they become harsh on the management.

Then 60% of high-yield bonds, plus 40% of junk bonds, will become the first choice for these stable funds?

Isn't it ridiculous?

But for Citigroup, once this portfolio is marketed to selected funds, various contracts and non-disclosure clauses are signed.

Citigroup earns more than 40% more money than other commercial banks every year.

And this 40% means that the annual net profit is 100 million to 200 million U.S. dollars more than the previous year.

Compared with the profits of other commercial banks and investment banks, a 40% increase will make it impossible for the stock price to skyrocket.

In addition, subprime mortgages are actually not necessarily necessary, and junk stocks in real estate are completely needed.

Since oil and gold will rise in the next ten years, the United States will definitely issue a large amount of national debt.

You can use these stable income assets, plus various junk stocks to make a combination, and promote them to various hedge funds.

Moreover, the income from subprime mortgage loans is only the first.

As far as Li Changheng thought, there were insurance companies insuring these bonds, and rating agencies rated the packaged bond products for 50,000 and 100,000 US dollars.

There is also a bumper for funds to recognize and accept subprime mortgage products in order to obtain more national debt.

Help the Federal Reserve to lend the printed dollar bills to investors in large quantities, and you can earn two more transaction fees.

As for the contracts for loans to investors, junk contracts with low repayment ability are selected and packaged with spot contracts such as treasury bonds, gold, and oil.

Then use contracts with high repayment ability to form a second financial product with other junk bonds, and submit them to rating agencies for evaluation.

It is easy for Citibank to transfer the claims and risks to investors, and also earn a transaction fee from the transaction.

Of course, some people will say that oil and gold will rise, and Citigroup will suffer losses if they sell them.

But Citigroup is a commercial bank, not only able to absorb deposits, but also has all the functions and powers of an investment bank.

Take out 10 million gold and oil contracts to make combined bonds this morning, and in the afternoon, Citigroup will be able to buy back the same number of spot contracts in the market at a lower price than subprime mortgage transaction fees.

That is to say, as long as gold and oil do not fall, Citigroup can always earn transaction fees and price differences, taking all up and down.

Even bite the mouth to the Fed.

However, for the sake of confidentiality, it is better to let the Fed eat more profits from this model for a period of time.

After all, apart from Citigroup, the power that controls the Federal Reserve is not a fool, and it is impossible to not notice it after a long time.

Fortunately, in this era, because of the unlimited expansion of several large consortiums, the Americans have always been very strict in controlling financial institutions.

The harm of financial derivatives will definitely not be as serious as it will be decades later.

Moreover, it has always existed, but banks did not expect to combine junk bonds with good assets to make the cake bigger and earn more transaction fees than good bonds.

As for who will suffer in the end, it must be the US government and ordinary people.

As for issues such as conscience and morality, capitalists don't care about this.

What's more, it is often the group of vampires on Wall Street who maintain the high credit and high quality of life of Americans.

Investors can't wait to kill their investment managers and fund managers, just because they encounter a financial crisis.

But when there is a bull market, the leeks in the United States will be like flies, chasing after those Wall Street elites who can make money.

Therefore, since you enter the market, you must be prepared to lose money.

Li Changheng, who finished thinking about this in a few seconds, looked at the shareholders one by one, and bewitched again.

"In the next ten years, as long as you are a shareholder of Citigroup, even if you only hold 0.1% of the shares, I guarantee that you will become a billionaire."

Now, no matter whether it is a major shareholder or a minority shareholder, they all stared at Li Changheng quietly and with blind eyes.

Everyone would not believe what Li Changheng said, but at this time, no one would question him like a fool.

The prospects of TV shopping, vertical farms and office integration, and computer-replaced word processors make shareholders have to let go of their doubts and choose to believe in Li Changheng.

Moreover, since they dare to publicly promise to shareholders, everyone is still willing to give Li Changheng a little time to prove himself.

What Li Changheng said next made everyone believe that he was not talking nonsense.

Bringing some shareholders into the meeting room, Li Changheng kissed Annie and asked her to wait for him in the luxurious reception room.

But I didn't expect that Annie's expression was tangled, her eyes showed a cautious look, and she held her hand tightly.

After Li Changheng thought about it for a while, he realized that this chick probably wanted to tell the father-in-law to buy Citigroup shares as soon as possible.

But he was worried that he would offend his own man.

After thinking about it, since I can't buy stocks in the stock market, it's better to be cheaper than my father-in-law.

Even if Annie didn't say anything, Philip would probably use the fund to buy Citigroup shares.

Taking the initiative to remind you is definitely better than saying nothing.

However, how to say it is a bit particular, "Don't make phone calls or write letters, let Butler Meryl fly to London, so as not to be caught with inside information.

Moreover, you are my fiancee, and you must not buy Citigroup shares at this time. "

Annie nodded happily, then shook Li Changheng's hand a few times, and asked with a charming smile, "It's almost winter, I want to buy a sable coat, okay?"

Of course, Li Changheng will not be stingy about this matter, let alone tens of thousands of dollars, even hundreds of thousands of dollars is fine, "I will accompany you to go shopping in the afternoon."

Annie suddenly showed a bright smile.

Li Changheng scented her mouth a few times, and asked Banks and Dao Feng to take care of Anne.

He walked into the meeting room and waited for the idlers to leave. He scanned the dozens of shareholders before heading to the podium.