Reborn Capital Madman

In the current period, Wall Street is so ugly in extracting profits that even public opinion in capitalist society and other industries cannot tolerate it in a numb manner.

The basis for dissatisfaction is not just based on intuitive feelings, but according to the media, it is supported by clear data.

Simply put, this year, 1986, was the most profitable year in Wall Street's history.

Judging from the data on the surface, in the fiscal year 1986, Drexel Burnham Lambert, the leader in the junk bond field, had a net profit of $550 million.

About US dollars.

It is particularly worth mentioning that as the director of the junk bond business of Drexel Burnham Lambert, Michael Milken, who can be said to have single-handedly promoted the boom in the U.S. junk bond market, received a personal salary of nearly

Three hundred million U.S. dollars, setting a record for the highest employee salary in the world. It is unprecedented, and it is estimated that it will be difficult for others to come after it.

As the saying goes, hitting the first bird with a gun, at this stage, Drexel Burnham Lambert and Michael Milken are closely watched by all aspects, including the U.S. Securities and Exchange Commission, and they are quite likely to become the target of public criticism.

, so that Morgan Stanley, which ranks second in the junk bond field, is often ignored.

It has to be said that no matter where you are, making a fortune in silence is an iron rule. Just like Sir Gao, the attention surrounding him has been transferred to the public interest platform of the Hong Kong Exchange Fund Administration, and the Gao Group's

Each member is relatively low-key. Even if public operations such as becoming the largest shareholder of Intel are criticized by various financial analysts, none of them involves the negative attributes of capital.

How brilliant the Hong Kong Exchange Fund Authority is now can be seen from the enthusiastic reception of the series of global promotion activities of the International Financial Center and International Digital Center held at the Waldorf Astoria Hotel in New York that it supported. Participants included Wall Street

There are major investment banks, high-tech companies, and even media giants.

The logic here is not difficult to understand. Xiangjiang's international financial center has moved beyond Asia and reached global standards, and the international digital center, to a large extent, is consolidating the status of the existing international financial center, such as financial information processing and exchange.

The efficiency is higher, and international investment banks and commercial banks naturally like it.

The psychology of high-tech companies flocking to them is simpler and clearer, and the order for the construction of the Xiangjiang Digital Expressway is full of temptation.

As for the enthusiasm of the media giants, it reflects the foresight of the elites and their recognition of Hong Kong's potential to become a global media center.

In fact, the deeper logic here is that Xiangjiang is now a bridgehead for outsiders to enter the huge Chinese market.

Everyone who comes is a guest. The organizers of the event are the Hong Kong Exchange Fund Administration, the Hong Kong Development Investment Fund, the Hong Kong Trade Development Council, the Hong Kong Productivity Council, the Hong Kong Federation of Industries, the Industry Department and the Trade Department of the Hong Kong government, etc., and various departments

His job is to provide warm hospitality and active negotiation.

Sir Gao, President of the Hong Kong Exchange Fund Authority, has focused his main efforts on contacting the financial circle. Regarding the current obvious appreciation trend of the Hong Kong dollar, the Hong Kong Japanese Yen Offshore Financial Center and the deepening development of the Hong Kong International Financial Center, the Hong Kong Exchange Fund Authority

Issues such as rumors of being upgraded to the Hong Kong Monetary Authority not only have many names, but are also of great concern to the outside world. They are absolutely inseparable from communication with sufficient level and authority.

Again, circles are everywhere, and Wall Street is no exception and can be divided into three, six, and nine categories. Among them, the most traditional and core circles are large investment banks, such as Morgan Stanley, Goldman Sachs, etc., don’t look at Lehman

The brother company fell into operating difficulties and was acquired by Goyi America, but it also belongs to this circle. It is just ranked at the bottom, even temporarily inferior to Salomon Brothers.

Another example is that the venture capital circle, which has grown up with the high-tech industry in Silicon Valley, is also receiving more and more attention. For example, when Apple Computer was listed on the Nasdaq, Morgan Stanley participated in stock underwriting in a condescending manner.

However, the most popular circle at the moment is undoubtedly the junk bond circle, which allows companies of the level of Drexel Burnham Lambert to have the ability to influence the world and rival the large investment banks on Wall Street.

By the way, junk bonds are just a popular name. Even Morgan Stanley is actively participating in this game. There must be a euphemistic name for it, called high-risk high-yield bonds.

As a method of play that can be accepted by the inner circle of Wall Street, junk bonds naturally have strong vitality. The most attractive thing that makes capital operation elites crazy is their supporting role in leveraged buyouts.

To give a random example, William Simon, the Secretary of the Treasury during the Nixon and Ford administrations, was a senior partner in charge of the government and municipal bond departments of Salomon Brothers before entering politics; when Carter won the presidency

, he came to the political arena, returned to Wall Street, and started his old business. In 1982, he used leveraged buyout to acquire the second largest greeting card supplier in the United States, the American Greeting Card Company.

In this transaction with an acquisition value of up to 80 million U.S. dollars, William Simon’s capital was only 1 million U.S. dollars, of which 330,000 U.S. dollars was paid by him personally, and the remaining 79 million U.S. dollars were contributed by people like

Companies like Drexel Burnham Lambert provide this through junk bonds.

Sixteen months after William Simon successfully acquired the American Greeting Card Company, the American Greeting Card Company went public for the first time, and its market value suddenly soared to US$290 million. William Simon personally earned about US$66 million, and he really became a businessman.

It’s high risk and high return.

With such successful examples out there, it’s no wonder that junk bonds don’t spread.

According to information obtained by Gao Xian, from 1979 to the present, an average of about 200 leveraged buyouts have occurred in the U.S. capital market each year, in which private equity funds and junk bonds play a crucial role.

Among the Wall Street elites who came to the Waldorf Astoria Hotel in New York, where the event was held, was the very popular Michael Milken. Sir Gao gave him warm hospitality as usual.

How awesome is Michael Milken now?

There is a highly credible statement circulating in Wall Street circles that Michael Milken's ability to raise funds can even be compared with that of the boss of the bosses - J.P. Morgan.

A strong proof is that the issuance of junk bonds is inseparable from banks, but banks know what high risks are; and at this time, Michael Milken's personal reputation is an endorsement of success.

During the conversation, Michael Milken talked about his interest in the Hong Kong International Financial Center and his long-standing admiration for the rise of Asian capital.

In this kind of high-pitched talk, Sir Gao understood the implicit meaning. Michael Milken wanted to continue to expand the debt-based bond business, especially to expand the capital pool.

You must know that debt-based bonds can only be successfully financed if there are buyers willing to take over them. The situation in the United States is roughly that since the Roosevelt New Deal in the 1930s, there has been a series of strengthened supervision of the American financial industry. In the current Reagan era in the 1980s,

After coming to power, many restrictions were loosened. In this case, insurance companies became the main force in buying junk bonds. But the larger the capital pool, the better. There is also Asia, which has greatly enhanced its purchasing power due to the depreciation of the US dollar after the Plaza Accord.

Capital, is it easier to coax the country rich?

In this regard, Gao Xian did not express his attitude, which is also his expected behavior as the president of the Hong Kong Exchange Fund Management Bureau. You can test it, but it is normal for me not to react.

There are too many "wild ways" in the junk bond game now. It takes time to perfect the rules. The U.S. Securities and Exchange Commission is investigating various behind-the-scenes operations. Sir Gao does not intend to give the official opinion of the Hong Kong Exchange Fund Management Bureau to avoid endorsement.

.As for the Gao Group, Lehman Brothers can have some fun, and the other members can forget about it for the time being.

It can be said that Michael Milken's test did not make Gao Xian feel uncomfortable, but when people like Soros tried to make insinuations about the Exchange Fund Authority's attitude towards the current obvious appreciation trend of the Hong Kong dollar, it was inevitable that he would let him

I became wary.

However, Gao Xian believes that the current general situation will not allow international speculators to do anything big, so he said bluntly that the Exchange Fund Administration believes that the timely introduction of negative interest rates by the Hong Kong banking industry is a good move

.

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