"Don't! Save it. Now that things are just turning a bit better here in Douglas, don't let anything go wrong. This is not the only thing I'm talking about...such as debt securitization? I don't know how to do it specifically, but

I have an idea! You can learn more about this aspect by then. If you really don’t know how, you can also call and chat with Julian to see if it can be done."

Debt securitization can be said to be the main culprit of the 2008 subprime mortgage crisis.

It's impossible that Carter hasn't heard of the famous name of this thing. But what he understands is that he has heard of it...

What exactly is it, how to operate it, is it compliant... Sorry, I don’t know!

But in many cases, ideas are often more important than execution! Just like now, when he heard the terms debt and securitization, Goodman's eyes jumped:

"You mean to treat a certain debt as a commodity, no, as an asset certificate that can generate income and sell it on the securities market?! Is this... okay? Isn't it illegal?"

"I just don't know if the current law allows it!"

Carter helplessly spread his hands. If he knew how to operate this thing, I would be talking about it!

It doesn’t mean you don’t understand the operation, but Carter can already understand the logic of this gameplay after going through HT’s IPO planning:

"But just speaking of logic, it should be feasible! Think about it, is the basic condition for securitization financing that the underlying assets can generate predictable and stable cash flows? Just like ordinary company stocks, this stock has the underlying

The basic asset is a certain company, right? Then after the company operates and makes profits, it will have predictable cash returns."

"Don't debts also have this characteristic? For example, a debt of one million US dollars, with a ten-year term and an annual interest rate of 10%. Then this debt of one million US dollars, without considering the reduction of the principal, should be able to generate stable income every year.

The income of US$100,000. Can I think that the interest income of US$100,000 was earned through the basic assets of US$1 million? It should be understood this way?”

"So under this assumption, if I treat this one million US dollar debt as a stock. Assuming that the total share capital is 100,000 shares, then I can get a pre-tax income of US$1 per share every year, which is 10 in ten years.

US dollars. If the issue price is US$3, 100,000 shares

By going public, we can raise US$300,000. Although we lose future interest income, we directly receive US$300,000 in cash. We have saved nearly ten years of time and costs, and we have also passed on the risk of bad debts.

.You...Why are you looking at me like that?"

Following the pitiful content of debt securitization in his memory, combined with some knowledge of the securities market that he had previously learned, Carter, who was making logical deductions as he spoke, suddenly found that the vehicle had stopped on the side of the road at some point.

Goodman next to him was staring at him with a pair of big copper bell-like eyes...

"What the hell...how did you come up with this way of playing?"

Goodman made a rough calculation in his mind about the current loan size of Black Bank. Even if the debt securitization return is 10:3, if this can be done, just the existing debt scale can raise more than 6 million US dollars.

At the same time, it also transferred the risk of bad debts to the leeks in the securities market...

After the housing loan is disbursed, it will be nearly more than seven million U.S. dollars. Adding the two together, there will be more than thirteen million U.S. dollars of development funds out of thin air?!

It's just good that the available funds have increased, but the scary thing is that this way, Black Bank will not have to worry about the bad debts of these loans at all...

only...

"Why the hell didn't you think of that before? Forget it, if you had known this gameplay before, you might not have the HT that we have now. HT is now... gaining momentum. By the way, I'll give you this. Just read the Wall Street Journal

Comments: The galloping white horse is about to arrive on Wall Street!"

"When it goes public next year, your worth will probably double... Hey, what do you think, our bank will invest some HT in advance?"

"It depends on the situation. I don't plan to have Series B. I'll wait until the cash flow in the bank becomes more abundant. Will the reserve ratio be raised soon? It doesn't matter. I can't invest in HT. I have other goals."

!”

Carter shook his head and objected while taking the Wall Street Journal from Goodman.

As for why I didn’t think of this idea before to solve the first bad debt crisis. Then... isn’t that completely ignorant?

Although I still know a little about it now, at any rate, my understanding of the securities market is completely different from what I was when I first traveled through time!

Now I know the general logic. At that time, I only knew the term...

Can this be the same?!

"Okay, then I understand. By the way, this debt securitization...are you going to do it?"

After restarting the car, Goodman's mind turned to this new thing.

"Not sure, let's discuss it after we get back! Have you forgotten what we just said, the plan and goals?! Since we want to do it, we have to do it well. Let's make the development plan first and securitize the debt. In the final analysis

It's just a tool. If we need it to achieve our purpose, we can use it

Release it and try to promote it. If it is not needed, release it temporarily. Anyway, now... By the way, there should be no debt securities products on the market now, right? I remember when I was in Tennessee a few months ago, and last year in

I’ve never seen it in New York, and I’ve never heard anyone mention this concept.”

"Also, tools cannot guide our behavior. But what you said makes me curious. Do you have any new ideas in your mind? Hurry up and tell me!"

Driving on Route 23, Goodman's mind was aroused by debt securitization, just like a man who went to a club for health care. He found a beautiful and perfect technician, but he just turned out to be as fucked as a vegetarian...

Desire has been aroused. Since you can't touch this one, what about another one? There must be someone who can play with meat, right?!

"Other...ETF?"

"ETF? What is this?"

"I don't know what this is, it seems to be related to index funds..."

Carter fished for his head.

This bad old man Goodman is very bad. Isn't this making things difficult for me and blocking someone?

As a non-financial practitioner, what little knowledge I have is almost empty...

"???"

Carter thinks Goodman is bad, and Goodman also thinks Carter is ridiculously bad. What do you mean by not knowing?!

You don’t know why you can use ETF... The abbreviation of this thing is out, do you know what it is?! You just don’t want to say it! You just don’t believe me, Goodman!

"You! You don't know, then why do you mention it?!"

After swallowing the humiliation that slipped to his lips, Goodman decided to use a more euphemistic way of saying it to test Carter's bottom line.

"Isn't this what you are asking? I...Hey, when I have time, I will go to Boston or New York and talk to Mr. Bogle. He seems to be playing index funds. If I don't understand, I can learn from him!

"

"Anyway, anyway, this is a securitized product. Just know this. It's probably about getting the shares of an index fund to be publicly traded on the secondary market..."

"This seems nothing, right? If a closed-end fund is listed, its shares can also be traded in disguise. Could it be that the index fund you are talking about is not a closed fund? It is an open-end fund... open-end funds, listed and securitized...

.”
Chapter completed!