Wall Street bigwigs!

Just as Green returned to his office and was about to make himself a cup of coffee, John and Selgen arrived together.

Vera and Mary also arrived at the same time.

"Please have a seat. I called you here to discuss some business matters."

As he spoke, Green looked at Vera and asked.

"Vera, have the funds from R&F Fund and R&F Securities arrived?"

Upon hearing this, John and Selgen sat up straight and both looked at Vera.

"The funds from both companies arrived yesterday. In terms of funding, Szergen's old clients have brought in $300 million."

The remaining funds are all our own funds.

Your personal tax return for April has also been separated from your company's.

Currently, R&F Securities has $1800 million in its own funds (including Nike stock), while R&F Fund has a total of $2100 million.

Vera finished speaking in a calm tone, and then Mary spoke up.

Everyone turned their attention to the owner, Green, eagerly awaiting his next words.

Everyone understood that apart from the $300 million brought by Selgen, which belonged to the client, the rest of the money belonged to the company itself.

This situation is rare in the financial world; in fact, such a proportion of funds has not been seen in the financial world since the end of World War II.

Green calmly took out a stack of printed documents from the safe and distributed them to the four people.

Mexican Peso Arbitrage Program (Internal Decision Document)

Therefore, Green had been preparing this plan for a long time. The first battle of the Raptors had to be won, and won beautifully.

Otherwise, the morale of people gathered together on a temporary basis can easily become problematic.

"I'm telling you, have you been paying attention to the market trends regarding the exchange rate difference between the Mexican peso and the US dollar?"

At the beginning of the month, the International Monetary Fund (IMF) released its 1988 Latin American Economic Outlook report.

The World Bank also released the Global Debt Report at the same time.

Then I looked for the 1987 fiscal year report published by the Mexican Ministry of Finance.

At this point, Green paused and looked at the four people.

"And guess what I saw?"

Mary and Vera sat side by side, looking at the materials in their hands.

In contrast, John and Selgen's eyes gleamed with a sharp glint; as professionals, they were more perceptive.

Combined with the materials that their boss, Green, gave them, it was clear that Green already had a plan.

"Mexico's public foreign debt has reached $820 billion, and its private foreign debt is $180 billion, an 8% increase since 1986."

The pressure to repay debts is continuously increasing. Do you know what that means?

Having a background in managing foreign exchange funds, he had access to more detailed data than John, so he spoke off the cuff.

"After the Latin American debt crisis, Mexico's debt far exceeded the Latin American average of 38%, and the Mexican government's debt accounted for 50% of GDP, which is already in the critical range of crisis."

Green nodded approvingly and continued.

"I wonder if any of you have studied the proportion of Mexican government's fiscal revenue."

A Mexican government report last year indicated that oil exports accounted for 60% of fiscal revenue, but international crude oil prices plummeted by 30% last year.

John quickly flipped to page 5 and pointed to the data in the material that the Mexican central bank's foreign exchange reserves were less than $80 billion.

"The Mexican government's foreign exchange reserves are far from sufficient to cover three months of import costs plus short-term foreign debt repayments!"

Schergen added.

In 1980, Mexico began to implement a fixed exchange rate system with the US dollar.

However, Mexico's inflation rate is 25%, which is much higher than our 4%, so the Mexican peso's real exchange rate is overvalued by 30%.

If we add to that the continued decline in export competitiveness, then it's only a matter of time before Mexico adjusts its currency.

This is the core logic behind Green's plan to short the Mexican peso.

But there's one point he didn't include in the material.

That is, the Mexican government's election this year will be another farce. Although he forgot the specific results, he knew that the election turmoil was also an important reference point.

Vera remained silent; these things were outside her area of ​​expertise. Green had summoned her to the meeting to find out how much money the company currently had.

Mary frowned slightly as she looked at the three men.

"Gentlemen, I must tell you to pay attention to leverage and investment ratios."

So you think shorting the Mexican peso is very profitable?

As she spoke, Mary gave Green a deep look, the meaning of which was self-evident.

Mary knew that Green had once used an insane 15x leverage to short Westinghouse Electric on Black Monday.

Green awkwardly rubbed his fingers together. He couldn't very well say that it was because he knew there was no risk in shorting Westinghouse Electric that day, and that Westinghouse Electric's stock price didn't even put up a fight before plummeting straight down.

However, his reason for recruiting Mary was not only because of her connections in regulatory agencies.

More importantly, he knew the personality of these crazy people in finance, so he put Mary in a position to apply the brakes.

Especially after the millennium, global hedge funds have completely abandoned the word "hedge," opting instead for private clubs or other illicit activities.

Moreover, their leverage in private is increasingly outrageous, which often leads to unexpected events in major global financial markets.

John and Selgen nodded in agreement.

"According to the boss's analysis, shorting the peso can indeed generate considerable profits, and we can also short related companies at the same time."

Examples include Coca-Cola's Mexican subsidiary, American Express Mexico, and Ford's supply chain companies in Mexico.

"Okay, Mary, what leverage ratio do you think we can use while ensuring the risks are manageable?" Green asked.

"It depends on your assessment. If you feel that the risk of shorting the peso is not high, my suggestion is that 3-4 times leverage is more appropriate."

Mary quickly calculated the result with the pen and paper, then looked at the three men.

Green silently picked up his coffee cup and covered his eyes to avoid looking at the embarrassed Selgen and John.

The two of them didn't realize that Mary was talking about the boss; instead, they thought she was targeting them.

以前对他们来说3-4倍槓桿太小，5-7倍槓桿最常见，8-10倍槓桿多多益善。

Seeing that they remained silent, Green put down his cup and spoke.

"Okay, then we'll go with your suggestion. As for whether it's 3x or 4x leverage, we'll see how things go at the time."

He then looked at John and Selgen, who were still somewhat unwilling.

"From now on, all leveraged transactions must be signed by Mary and me before they can be executed."

R&F was founded on compliance. Don't forget that regulatory agencies review our operations every month; don't give them any excuses.

He said that to enhance Mary's authority, otherwise these guys would easily let themselves go.

John and Selgen nodded.

"Now let's talk about the specific implementation plan, calculated based on a 4x leverage."

So the two companies need to allocate a total of 40% ($2000 million) as compliance deposits and contingency funds.

John, you should mortgage those Nike shares first; Nike's stock price has been recovering recently.

John hesitated for a moment before speaking.

"Actually, I would suggest waiting until Nike's stock price recovers to last year's level before selling Nike shares. There are many more valuable companies in the market that are worth investing in."