Breaking Up Is Better Than Divorce

learning effect

“You mean you want a 3-month swap contract based on the 24 hour exchange rate on June 22? Yamada-san.”

Mitsubishi Tokyo UFJ Bank New York branch employee Miyake asked.

“uh. It’s a billion dollars.”

Yamada replied.

“But how about there? Are you okay?”

Now, Yamada came as a customer, but the two had been working for the same company not long ago, so Miyake did not hesitate to ask private questions while negotiating a large deal.

“The atmosphere is great. What’s more, the amount is different. My boss doesn’t know anything else, but he’s not the type to save money. The payoff for success at stake this time is also great.”

Yamada, who used to work at the New York branch of Mitsubishi Tokyo UFJ Bank, moved to Eugene’s office a few months ago after receiving an offer that was 30% higher than what he had been paid until then.

The amount offered was also a large amount, but the desire to watch Eugene, who has made a mark in the history of global finance for the past two years, was even greater.

Actually, I had a lot of trouble before I decided to move for the first time.

Dealers and managers on Wall Street tend to change jobs easily, but there is one unwritten rule. If you move to a lower-ranking company, it will be difficult to rise again.

Mitsubishi Tokyo UFJ Bank is the largest financial institution in Japan and is classified as a Tier 2 investment bank in the world.

On the other hand, Eugene’s office is at the level of a top boutique.

Of course, it is true that Eugene’s prestige is great, but there is no guarantee that he will be able to achieve such a feat forever.

Moreover, it was very well known that his investment method pursued high-risk, high-return that was comparable to that of a hedge fund.

It means that you can fall into hell at any time with just one failure.

Countless investors who have risen to such stars on Wall Street are doomed overnight.

There was no law prohibiting Eugene from being on that list of losers.

However, Yamada succumbed to the desire to witness the historical scene with his own eyes, whatever the outcome.

Perhaps an opportunity like this will never come again.

“You have to be successful to get paid, right? Isn’t it a little risky this time? Even if it’s a little bit, I heard that the bet amount was astronomical? No matter how much Kang, this time it seems like an irrational number.”

Miyake walked over to the other side. In fact, Yamada, a native of Kanto, didn’t really trust or like Miyake, who was from Kansai.

“Everyone seemed to think so. In fact, it is true that there are also voices of concern internally. I’m a little scared.”

Yamada said with a slightly bitter smile.

“Then maybe it will be like LTCM.”

Miyake talked about the legendary hedge fund, which is considered a symbol of Wall Street people.

Long Term Capital Management.

Appearing like a comet in 1994, generating a phenomenal 30-fold return in three years, continuing to invest with excessive leverage in Russian bonds, and ending up with an astronomical bankruptcy of $100 billion. left a precedent.

“haha. What is Long Term Capital? Don’t say anything terrible.”

“You won’t get any Fed aid like LTCM.”

Miyake scares you once again.

What Long Term Capital caused was large enough to bring disaster on Wall Street.

In the end, the Fed (the US Federal Reserve, an institution equivalent to another country’s central bank) raised a huge amount of $50 billion and applied to Long-Term Capital to help it get out of the crisis, and as a result, Long-Term Capital was able to recover. .

This incident signaled to Wall Street investment institutions that the state will eventually help if the scale of the accident is unmanageable, and as a result, they have made generous investments up to the subprime mortgage crisis.

Just as Korean conglomerates take it for granted that they receive help from the government when their business is in crisis, the trend of Too Big to Fail has become prevalent on Wall Street.

But Miyake was saying it would be different in Eugene’s case. This is because Eugene is neither the mainstream white American nor the mainstream Jew on Wall Street.

“It can’t be, but I can’t help it.”

“Think about it. In a wrecked ship, the first person to get off is the winner. I mean this because it’s a friend.”

“Think about it. How about the fee part? It wouldn’t be bad if it was our calculation.”

“I will review it. If you do, your consent will decline.”

“Isn’t it obvious? 2:8 or 1:9.”

Yamada uttered the sound of death once more and stood up.

However, the moment he left Mitsubishi Tokyo UFJ Bank, Yamada’s face changed to a triumphant expression as if he had lost his spirit.

Yamada was well aware of Miyake, who was in charge of the swap. He is timid and cunning, but when he sees the weak, he quickly becomes arrogant.

The reason Yamada took a dead grass posture was to conclude the contract.

With the exception of boss Eugene, the other employees signaled that they were concerned about the investment, and Yamada showed a weakness for Miyake.

Miyake, as Yamada knows, would think the proposed swap contract was a no-brainer.

If Yamada, on the other hand, had shown a dignified appearance, he might have been intimidated and tepid in signing the contract.

It was Eugene’s calculation that Yamada’s actions and sending Yamada to Mitsubishi Tokyo UFJ Bank on that day.

In the meantime, Eugene has hired a number of employees with experience at various financial institutions on Wall Street.

It was to make the most of their connections for future investments.

And at this moment, in dozens of large investment institutions on Wall Street, employees like Yamada who seek out their old jobs and ask for contracts are desperately trying to get as many contracts as they can with their abilities.

Each of those contracts would lead to bonus pay, and, as Yamada said, their boss was never a money sitter.

As I said to Miyake, the atmosphere inside the office isn’t bad either. In fact, that is not possible.

The people who accepted Eugene’s recruit are people who are curious about how a man named Eugene accomplished such a terrific thing, and they want to watch from the side and admire him.

Without it, no matter how high the pay, he would have resigned from the top-tier companies he had worked for so far and entered under Eugene, a hedge fund level.

Full of ambition and longing for adventure, and wanting to participate in Eugene’s feat, they were a little puzzled at first by Eugene’s decision, but soon understood.

In order to build a feat that is different from others, you have to make a judgment that is different from others.

The problem is making the most of that kind of judgment.

In order to do that, it was necessary to close the largest contract at the most appropriate time.

It is well known that boss Eugene has garnered huge sums from Wall Street investment banks in the past two years in various derivative contracts.

This time, investment banks were contemplating whether or not to enter into various derivative products requested by Eugene’s employees.

Fortunately, it is the British people, not any specific entity, that hold the key to decide the direction of this bet, and most British people do not think that such a foolish decision will be made.

Thanks to this, the office staff was able to close the targeted contracts one by one more easily than expected.

If the betting score had not risen to 2:8 or 1:9, Eugene’s investment would have been difficult to achieve.

In the midst of such a busy time, a visitor came.

“How about a movie?”

Sarah, who had just flown in for a new movie that was starting shooting in New York, looked a little tired.

“Not bad. It’s actually pretty fun. I think the happiest moment is shooting a movie. Except for the fact that Gina isn’t by my side, I can’t ask for anything more. This time it feels pretty good.”

“I think it will be a good movie. It will also be successful.”

Eugene knows that this film isn’t going to be very successful, nor will it help Sarah’s career, but she’s not foolish enough to say it.

“Oh yeah! Do you think that people in our country will choose Brexit?”

Sarah asked as if suddenly remembered.

“Did I?”

Eugene asked, taking off the shichimi.

“Dad was like that. Eugene made a huge bet in favor of Brexit. You said there’s a riot on Wall Street right now?”

The amount of funds Eugene manages has already exceeded the level at which he can move secretly.

Even a move of 10 billion dollars can be tens of billions of dollars with a little leverage.

If you add leverage to 100 billion dollars, it’s a ridiculous amount that already exceeds the budget level of a country.

It is not that there are no institutions that manage hundreds of billions of dollars to trillions of dollars, but that is the case of diversifying investments in countless different products over a long period of time.

However, although Eugene’s bet this time is said to be spread over several products, it is invested in a short period of less than a month.

Even now, his loyal staff will be busy roaming Wall Street.

Eugene had no way to block the information about this investment, and had no intention of stopping it.

In fact, it’s half intentional.

“Maybe it will.”

“What. Actually, I’m thinking maybe that’s the case too. Dad would be terrified if he heard it.”

Sarah laughed and said.

“You didn’t know Sarah was a Brexit pro?”

“There are quite a few around me than I thought. The UK doesn’t have to be with Europe, right?”

It seems that there are quite a few supporters even in the very upper classes like her.

Unlike workers who are just outraged by immigrants, they will be a little different in that they want to remain as traditional British aristocrats forever.

And there’s another point: the upper classes are able to bear some economic loss, while economically disadvantaged people are in favor of a break with the European Union, which will put them in even more trouble.

The next day after Sarah’s visit, Eugene got a call from her father.

“I heard that you are betting on a Brexit deal. Will our funds be included?”

“I know that to some extent.”

“Well… … .”

He was silent for a moment in response to Eugene’s answer.

“You seem in trouble?”

Eugene spoke up first.

“Probably yes. Whatever the outcome, it would be a disgrace to everyone in the royal family when it turns out that money related to the royal family has been invested in an event that has a huge impact on the lives of the people.”

As he is in charge of managing the royal estate, he seems concerned about the impact Eugene’s investment will cause.

Even if Hagi was in Korea, if the fact that the president was betting money on the national ambassador was revealed, there would be impeachment calls immediately.

“All right. In that case, Sir Delvian’s funds will be excluded from the investment.”

In the contract signed with Delbian, the management of assets was completely under the jurisdiction of Eugene. So, as long as the contract is not broken, Eugene can manage her assets at will.

But Eugene had no intention of being stubborn like that.

“Thank you for your understanding.”

It would be a good thing to say to Delbian that he would take it out of the investment.

It is unknown whether his request is simply because of concerns about the impact or the fear that the investment will fail, but there is nothing he can do if he misses the opportunity to make a lot of money.

And there was another person who gave Eugene a voice of concern.

“Isn’t this investment a bit hasty?”

On June 7, Trump, who was certain to be nominated for the Republican presidential nomination by a sweeping victory in the last primary held in California and other five states, invited Eugene to his penthouse.

“I heard public opinion that the chance of a Brexit settlement is less than 30%.”

“Some say that Hillary has an 80% chance of becoming president.”

Eugene smiled and replied.

“haha. None of that is fun. Isn’t that a risky gamble?”

Trump asked with an uncomfortable expression.

“I’m just convinced that Brexit will pass for the same reason I’m sure Mr Trump will win the presidency.”

“I’m sure… … .”

Trump was speechless.

Eugene felt in his face that, in fact, even Trump himself wasn’t completely sure he would become president. This old man is just betting on the odds.

And through the eyes of such a gambler, he felt that Eugene was making an unstable bet.

“How much have you earned so far?”

“Mr. Trump’s assets under our management were $873.2 million as of yesterday, so that’s $37325 million in revenue. That’s about a 75% return.”

“Awesome… … .”

Trump sighed.

“So what if this Brexit bet fails?”

“Worst case, we’ll blow it all away.”

Eugene was still speaking with a relaxed attitude.

“No trouble. that.”

“If you are in trouble, I will not include Mr Trump’s assets in this investment.”

Eugene brought out the words he had prepared.

I was already guessing that Trump was struggling quite a bit.

The situation was similar not only with Trump, but also with other people who had left Eugene with money.

He wanted to be on top of Eugene’s successful investment, but when he saw a risky investment, he was terrified.

Eugene gave them all a chance to indulge in investing.

The only person who did not make such a request was Sheikh Mansour.

Perhaps hundreds of millions of dollars for the denial of the Middle East seems to be a level that it does not matter if it is thrown away to appreciate Eugene.

Trump eventually decided to withdraw from the investment after much deliberation.

Eugene, who had already guessed to some extent that Trump would make such a decision, became happy thinking that he would deeply regret the decision in the next half months.

That is the reason why they did not try to prevent rumors about this investment.

The news of betting on Brexit withdrawal naturally wanted to reach their ears. And they all wanted to fear that the money they had earned would be blown away at once.

Those who have invested in Eugene will come to realize that opposing Eugene’s decision is never profitable.

Eugene gave them plenty of chances, and it was they themselves who kicked the big lucky chance.

A good lesson always leaves a great learning effect.