My Age of Investment

  Chapter 1007 US$2 billion loss

  After leaving Xia Jingxing’s office, Liu Hai returned shortly after, with a document still in his hand.

   "Look at it, the loss is not small."

   Liu Hai handed the file in his hand to Xia Jingxing with a not pretty face.

  Received the file. Although he had some psychological preparations, Xia Jingxing was stabbed by the numbers in the report.

  One hundred million...billion!

  The Federal Reserve cut interest rates once, causing a loss of more than US$500 million in Envision Capital’s US$14 billion net short position.

Taking Wells Fargo Bank as an example, Envision Capital shorted 32 million shares at an average price of US$28.21. Today’s share price surged by more than 10%, reaching US$30, which not only erased the hundreds of millions of US dollars in profits brought about by the stock’s continuous decline in previous days. , It also caused a floating loss of more than 60 million U.S. dollars to Yuanjing Capital.

  Other bank stocks also generally rose by more than 10%, while investment banking stocks rose slightly, with 4% and 5%.

  If it weren’t for the fact that financial stocks had generally fallen by a few points some time ago, today’s rebound would have caused a 10-digit loss to Vision Capital.

  The loss of more than US$500 million looks exaggerated, but divided by the amount of funds of US$14 billion, the loss is only three or four points.

  Where is this? To do finance, you first need a big heart.

  Looking at the dignified bangs, Xia Jingxing said relievedly: "Bernanke has just made three tricks. In addition to lowering the interest rate or cutting the interest rate!

  If the bank deposit interest rate decreases, investors will withdraw the money deposited in the bank, and market liquidity will increase, effectively preventing inflation and slowing down the economic recession.

  But the United States is now dyingly ill. Thousand-year ginseng can’t be saved, it’s just a return to the light!

  We have to stabilize our position, and the final victory must belong to us. "

   Liu Hai nodded, "I understand that I feel a little emotional. I used to spend less than hundreds of millions of dollars in my mind. Now I can lose money in one day."

  Xia Jingxing laughed, "This just shows that our strength has become stronger! If you lose more, you will naturally earn more."

   Liu Hai said: “Goldman Sachs and Morgan Stanley have asked us to increase the margin, and I have paid 1 billion US dollars.”

  Xia Jingxing nodded slightly. Excluding the two foreign exchange funds managed by Jiang Ping and the fund of funds managed by Abel, Envision Capital has prepared a total of 29 billion US dollars for the second wave of short-selling operations.

  At present, only US$20 billion has been spent, leveraging the US$60 billion leveraged funds provided by Morgan Stanley and Goldman Sachs.

  They still have 9 billion U.S. dollars in their hands, just to cope with the rebound in US stocks and other emergencies.

  After all, they are playing the trivial tactics, and the cards must be buried thickly.

   Liu Haiyan glanced at Xia Jingxing, “I expect the U.S. stock market may fluctuate broadly for a period of time, or else... more money in hand?”

  Xia Jingxing shook his head, "Leaving too much cash in his hand will greatly affect the rate of return, but you are right. You should make the ballast stone a little heavier.

  I will contact major banks as soon as possible to make another equity pledge loan.

   may not come in handy, be prepared for it!

  If it is useless in the end, it will only lose some interest. "

  Although Liu Hai felt that Xia Jingxing was a little desperate in his heart, he did not object to it. As the saying goes: the lion fights the rabbit, and also uses all the strength!

  What's more, Vision Capital invested tens of billions of dollars this time, which is already a ruin, and it is natural to use all available resources.

   "If it is not a last resort, it is better not to use these loans."

  Liu Hai solemnly said: “Facebook, YouTube, Ari, Tesla, Android, Overseas Holdings, and Fuxing Industry are all promising companies, and they are your biggest trump card.”

  Xia Jingxing smiled. He understood what Liu Hai meant. The worst case would be the destruction of Envision Capital, but his personal assets will not be destroyed, and he can rely on the equity of these startups to make a comeback.

   Liu Hai didn’t say it very bluntly, also considering that these words are a bit unlucky.

  But if you haven't tried to win, try to lose first. This is the most logical saying left by our ancestors. It's worth remembering!

   "Don't worry! I will avoid all risks."

   Seeing that Xia Jingxing was not complacent, but kept a clear head, Liu Hai relieved his heart.

   Rudely said that he and Xia Jingxing are now beyond the ordinary friendship and belong to life and death.

  If Xia Jingxing did not take him into a whole new world, then he might still be walking through the streets in Chinatown and recommending securities account opening to his grandfather and aunt.

  He was very grateful to Xia Jingxing, and naturally he didn't want to see the opponent lose everything because he was reluctant to stop the loss.

   did not mention these heavy topics again, Liu Hai said some good news: "Although the rebound in US stocks has caused us a lot of floating losses from shorting the underlying stocks, this is not an opportunity.

  At least our option contract should be able to take this opportunity to talk about a better strike price and lower option fees.

  In terms of shorting the underlying stocks, you can also wait for the opportunity to make some adjustments, and go short at a higher position after looking for opportunities to close the position.

  Looking at the Fed’s meaning, it shouldn’t give up the treatment yet, there will be some play later. "

  Xia Jingxing thought a little bit in his heart, and felt that Liu Hai’s statement made sense. Before Lehman went bankrupt, the Fed had been actively bailing out the market.

  If the bears want to usher in a big carnival, they have to do some see-saw.

  Because it is not a unilateral market, there will be no spectacular flying down three thousand feet. Therefore, if you want to reduce cost loss and even make a small profit during this period, you have to do some short-term operations.

  "You and the team can figure it out. Under the circumstance that the general direction of short selling remains unchanged, a small win is a big win, which can also reduce our margin pressure."

   Liu Hai smiled. He meant this. Envision Capital is not an ordinary investor. It has a complete investment and research team. It is completely possible to maximize the benefits through detailed operations within the delineated framework.

  The two were chatting, Jiang Ping knocked on the door and walked in. He also held a document in his hand.

After entering the house, Jiang Ping handed the documents to Xia Jingxing, “The three major stock indexes, including the S&P, Nasdaq and Dow, rebounded across the board, and profits have taken a lot.”

  Xia Jingxing took the file and took a look. The S&P 500 index rose by 2.14% today, from 1310.41 points to 1338.6, an increase of 28.2 points.

I immediately calculated it in my mind. At present, Envision Capital holds 60,000 S&P 500 index futures contracts. The fluctuation of one point is the contract multiplier 250 times the number of contracts 60,000, which is 15 million U.S. dollars, and then multiplied by 28.2 points, resulting in a loss of 400 million. Many dollars.

  Looking at the Nasdaq futures contract and the Dow futures contract again, today it is also a loss of hundreds of millions of dollars.

  Only today, they lost more than one billion U.S. dollars on the three major stock indexes.

  This result is still based on the situation that the leverage is only opened by 10 times.

  Vision Capital borrowed from Goldman Sachs and Morgan Stanley to pay 10 billion U.S. dollars in margin to CME Group. At present, only half of the margin has been used to short-selling 50 billion U.S. dollars in stock index futures.

  Among them, S&P 500 index futures shorted 60,000 lots at the position of 1,400 points, with a lot of 350,000 US dollars, for a total of 21 billion US dollars, occupying nearly half of the positions.

   Another 29 billion US dollars, diversified short-selling the Nasdaq and Dow futures.

  At the same time, this is the case where half of the margin in the Envision Capital account is not used. If all the margin is used, today's loss will double, reaching a huge amount of more than 2 billion US dollars.

  In this regard, Xia Jingxing feels okay, not too exciting.

  Because their account is still profitable, the S&P index will not lose money until it rebounds above 1400 points.

  In addition, because it is a forward contract, the loss is only a book number, not a real loss. The final profit and loss can only be determined until the due delivery or the midway liquidation.

   However, the two teams Jiang Ping and Liu Hai still suffered a loss of nearly 2 billion US dollars today, which made him feel a bit painful.

  (End of this chapter)