Future chat group - Chapter 869 Decentralization

Anyone who speculates in foreign exchange knows that there is something called overnight fee, which is actually interest.

If the overnight interest rate is 3.65%, and your position involves borrowing funds overnight, you must pay, which is 0.01% per day, and… it is charged according to the face value of the contract.

For foreign exchange trading platforms, overnight fees are an important source of profits, and large institutional traders also have these things.

I only have 1 million U.S. dollars. I use this 1 million U.S. dollars to buy something. I open more leverage and buy more than 1 million U.S. dollars. I hold the position overnight. I need to pay interest on the 1 million U.S. dollars borrowed. Why do large financial institutions make money? Because They are already making crazy money in this field.

According to the amount of funds of Yajin Investment, the position you need to borrow funds is 20 billion U.S. dollars. If it is one ten thousandth per day, you will also have to pay 2 million U.S. dollars.

From the perspective of profit, if you use 20 billion yuan in leverage and make less than 2 million yuan, at an interest rate of 3.65%, you will lose money. The extra 2 million yuan is the money you make.

In the same way, futures, stocks, bonds, etc. also operate in this way.

But because Yajintou has a large market, it can enjoy preferential treatment in terms of borrowing funds.

For example, if a bank has a deposit, the interest cost is 1% per annum, and the market generally offers an overnight lending rate of 2%. When funds are not in short supply, long-term cooperative institutions can often obtain an interest rate of around 1.5%.

What is the average interest rate that Asia Financial Investment currently receives from its partner institutions? In recent times, the overnight lending rate in the international market has fluctuated between 0.5% and 1.5%. The Asia-Pacific market has been higher, fluctuating around 2.5%, but there has been no money shortage. In the end, the interest rates offered by HSBC, Ketak, and banks from various countries to Asia Finance Investment were about Around 2%, there will be some fluctuations depending on the actual situation, but it’s not far off.

Then the situation is very clear. The board of directors is passing the blame. Logically speaking, if they do not want to delegate power, they should not reject the investment department’s plan, but directly pass it.

Only by rejecting the investment department’s plan and causing actual mistakes will the board of directors have an excuse to delegate power to the investment department, or… the shareholders will stop it? Then this becomes a conflict between the shareholders’ meeting and the investment department, and the board of directors withdraws.

Although the premise of everything is that the investment department led by Lei Hao must make money, does anyone doubt this? In the low-risk field, if Lei Haolei, the Chinese tiger and financial wizard, can’t make money yet, then he is not worthy of letting the board of directors delegate power, and the situation will become clear again.

On January 29, after Rui and other directors with strange thoughts rejected the investment department’s request, the U.S. dollar index began to fluctuate downward, slowly falling from 99.1157 to 99.1142. At 12 o’clock, the U.S. dollar index remained fluctuating around 99.1140.

17 basis points is of course higher than the cost. In other words, the board of directors of Asia Financial Investment was wrong to reject the investment department’s plan.

On January 30, Lei Hao was very “smart” and did not submit the plan again. Instead, he accompanied the board of directors and watched silently as the U.S. dollar index fell to 99.1133.

On January 31st, it was 99.1108. The U.S. dollar had an obvious decline. Yajin Investment did not use leverage, and there was no talk of insufficient capacity.

After a few days, Lei Hao had nothing to do, so he met with the Thunder’s board members almost every day. He seemed to think that if Ya Jintou was fine, he would return to the Thunder.

Now, it was the shareholders of Yajintou who were in trouble. They were beaten to death without even thinking that the board of directors would turn against them so quickly. Rui and his group stabbed them.

The board of directors of Yajin Investment was originally a thing introduced by the shareholders to restrict Lei Hao, but what Rui and others wronged was that they did not know that Lei Hao would take over Yajin Investment. For them, whether there is Lei Hao or not, They are two different things.

Without Lei Hao, Yajin Investment would definitely be stable. With Lei Hao, it would be quite difficult for these board members who are committed to developing Yajin Investment to support the shareholders, that is, the cooperative financial institutions. .

I have done well in Yajintou, and I have a glorious record on my resume. If I have not done well here, I must be taking the blame. Then… I will definitely pass the blame. I won’t accompany you. played.

The wonderful thing is that the board of directors and Lei Hao have formed a tacit understanding. Lei Hao will definitely not allow institutions such as HSBC and Keda to change board members, so… he is actually a sure winner.

On February 1, when the U.S. dollar index continued to decline, the Yajin Investment shareholders’ meeting temporarily handed over all rights of the investment department to the investment director, allowing Lei Hao to bypass the board of directors in certain areas and be directly responsible to shareholders. It means delegating power.

Things suddenly entered another node.

“The euro and the U.S. dollar have been competing fiercely recently. After all, as long as the time is right, institutions such as Ketak and HSBC have the desire to attack the U.S. dollar.” Looking at the data of the recent period, Lei Hao’s entry point for analyzing the market began to jump out of the Asia-Pacific, covering the entire international scope.

Chinese people say that the United States is targeting them, but in fact, Uncle Sam’s number one enemy in the financial market is the European Union.

To give the simplest example, Iraq once announced that oil would be settled in euros, and then… nothing happened. U.S. missiles hit it, troops moved in, and the newly supported government announced that it would return to settling in U.S. dollars. Europe was in trouble. In the throat, European and American financial institutions almost fell out completely.

The Asia-Pacific is the second enemy to the United States, and is a strategic area for Europe to contain the United States. That’s why there is Asia Financial Investment. Therefore, when China’s foreign exchange reserves reduced its holdings of U.S. Treasury bonds by nearly 200 billion U.S. dollars last year, Ordinary people will be surprised to find that the UK has reduced its holdings by more than 200 billion.

Europe and the United States, there are still differences between Europe and the United States. In the financial field, the two are sworn enemies. They can give the United States some fun. Europe is absolutely in favor of it with both hands and feet. China and even the Asia-Pacific can only be regarded as just emerging from the cracks. Come on.

The U.S. dollar is now in a depreciation channel, and the main force of selling is still the European group. Lei Hao read Thunder’s analysis report and agreed with the statement that China’s foreign exchange reserve structure adjustment and the reduction of the amount of U.S. dollar assets are far less than those in Europe.

Therefore, the sudden transfer of responsibility by the Yajin Investment Board of Directors was unexpected, but Lei Hao was very sure that the shareholders would not have any objections, because… the upper limit was in their hands.

“If Yajin Investment wants to use leverage, it must go through the channels of Ketak, HSBC, Standard Chartered and other institutions. In other words, even if they delegate power, they will not lose the right to close the valve for me.” Lei Hao was very clear-headed: “Then , What I have to do now is to test how much leverage the other party allows Yajin Tou to use.”

“The transactions involving US dollars every day in the world are on the order of trillions, but most of them are rigid. The soft transactions can last up to 400 to 500 billion. The amount I need is not large. Yajin Investment can support one or two thousand dollars.” One billion is enough.”

“So… leave Asia Pacific to Asia Financial Investment, and Thunder’s funds will directly enter North America!” The fog shrouded in front was gradually cleared, and Lei Hao felt that things were slowly returning to control.