1988 - 1st Quarter (11)
1988 - 1st Quarter (11)
27 billion dollars.
A devastating number.
Especially in the current situation where liquidity has dried up after Black Monday.
- Tha- Ahem. Did I hear 2.7B correctly?
"That's correct."
- We were preparing for around 1 billion dollars. I didn't expect it to suddenly double.
"Is it difficult?"
- ......We'll do our best.
Well, it wouldn't be easy to gather that quantity off the run.
It would be easy if we solicited publicly, but gathering it quietly without getting caught is a pretty tough amount.
"It's not confirmed on our end either, so you should probably secure up to 3 billion dollars or more."
- Goodness.
The total amount of 30-year U.S. Treasuries issued last year was 31.75 billion dollars.
That's about 9 billion dollars per quarter.
3 billion dollars is an enormous quantity, close to 10% of the 30-year issues from last year.
"It seems the scale will be larger than expected, so I called to tell you to prepare in advance."
- 3 billion dollars in 2 months....... Haa-. It's big, way too big.
"But if it succeeds, the credit Mickey-ssi takes will be tremendous too."
- That's a given, of course. Anyway, understood.
It might be a bit high difficulty for a new banker.
But there's no helping it.
If we can't get it all through Salomon, we'll just have to get some through other IBs.
"3 billion......?"
Mickey, who had put down the receiver, blankly repeated the mutter to himself.
In this field, it's everyday for mind-boggling numbers to be tossed around, but even so, the pressure from the number 3 billion dollars was immense.
'I couldn't even fill 1 billion?'
Cold sweat ran down his back.
Truthfully, when the contract was first made, he thought the mention of 1 billion dollars was also bluster.
There was no way a single fund, not an insurance company or a pension fund, would buy 10 billion dollars worth of long-term bonds.
'Fucked!'
The quantity he could currently put in the basket was at most 700 million dollars.
Even this was half on the run.
He had sneakily included quantities that would convert to off the run a few months later.
'Should I tell the truth even now.......'
As he was fidgeting anxiously.
BANG-!
A loud sound started coming from a place not far away.
"Fuck! Fuck! This goddamn motherfucker! Uwaaah!"
The source of the sound was the desk head, located right in the center of this department.
"Bonds again?"
"I think it's Prop this time."
"Why are they doing it again? What reason do they have to go crazy in our department?"
"Dunno. Fuck. Probably because we're the neighborhood pushovers."
BANG-! BANG-!
Now he was outright starting to throw things everywhere.
Even so, the surroundings only sent looks of understanding, and no one made an expression of displeasure or that it was noisy.
"It's worse than usual."
"Yeah."
The seniors' whispers reached Mickey's ears.
And simultaneously.
'Avoid the Prop and Bond departments today.'
The voice of that bloody young fund manager he heard a little while ago came to mind.
"Oh, shi-."
"What?"
"No. It's nothing."
Goosebumps rose all over his body.
Hadn't he just spoken on the phone with the very person who caused this situation?
More than the thought of what would happen if he got caught.
'Was he really someone who could handle 3 billion?!'
The thought that that bloody kid was a hidden master capable of screwing over the Prop department of bulge bracket firms came first.
'Anyway, that quantity is something my caliber can't handle.'
The moment Mickey made that judgment, he headed for the central head desk.
The figure bravely entering alone in a situation where everyone pretended not to know and kept their distance.
People's gazes all turned toward him.
And he went in front of the convulsing director and whispered softly into his ear.
"Chief."
"What! Fuck!"
"The Bond department. I have a way to screw them. Prop too, of course."
"......What?"
"But it must be kept secret. The moment the information leaks, it's over."
"......Follow me."
The chief said that and took Mickey to the bathroom.
"So the positions are all confirmed like this......."
Sensory feels subtly prickly.
How should I put it.
An uneasy feeling like something more is still left?
'Is there more room for profit?'
I took out a cigarette and put it in my mouth.
Click. Fsssh-.
'What could it be....... The accounts I can still enter now are.......'
"Ah!"
Right.
It's still there.
Two of them, at that.
"Ara."
"Yes."
"Contact Diana."
"Unnie?"
"Unnie?"
"Ah! Yes. We decided to call each other that."
When did those two get so close?
Well, it's not bad if they become close.
"David."
"Yes."
"Submit the employees' personal information. I'm going to open CMA accounts. For severance purposes. Make the maturity around 30 years."
"?"
"Tell them that after opening CMA accounts and signing LPOA contracts, my family office will manage them."
"Ah! That's good then! Everyone will like it."
"There's no limit, but everyone must put in the same amount. If they put in different amounts, it'll be annoying for me to manage."
"Understood!"
David immediately ran to the employees.
While the two handled their respective tasks, I picked up the phone and contacted Matthias.
- K&M;.
"It's me."
- Ah, Boss. What brings you to call? What about the U.S. Treasuries?
"Position closing."
- That's good news. Truthfully, I was quite worried.
"Sorry about that. But you can rest assured because I'm confident about the profit."
- I'll believe you. And um.......
"What's wrong?"
- I'm sorry. It really was a drought.
"It's fine if you know. It's already in the past."
- I'm sorry once again. More than that, what brings you to call at this hour? Isn't it the middle of the market session?
"I'm going to create a paper company. For managing the employees' severance. I plan to open a corporate CMA and have my family office manage it."
- Understood. That doesn't seem difficult.
"How long do you think it will take?"
- One hour is sufficient.
"......The Bahamas, as expected."
It only takes an hour to create a company.
That's a bit insane.
It's probably possible because it's a structure of buying something already made at a high price, but even so, it's definitely a crazy speed.
- Can I put in too?
"It's for the Execution Office employees' severance. If you put in, wouldn't there be a conflict of interest?"
- There don't seem to be any legal issues.
"You're the lawyer, so you'd know better. Fine. Then it must be the same amount as the employees."
- Understood. I'll talk to David and have it put in.
I hung up.
So is it roughly sorted out?
Matthias and David will handle the traffic and bring the accounts.
"Boss. Here, it's Unnie."
Ara subtly held out the phone.
- Hello? Arthur?
"Hi."
- Hmph! That finger of yours is expensive too, you know? Do you know how long it's been since we last spoke?
Is this the first call since putting in 3 million dollars to buy Corpus?
Seems like about half a month has passed.
"Set up a margin loan for me."
- Ugh! You really......!
"2 million dollars. 150 contracts each of Soybean, Corn at-the-money call options."
- ......Grains?
"Wheat, Barley too, if you can fit them in appropriately."
- I saw the drought news too. But they haven't even sown yet.
"October is fine too, but I'll buy July."
- July? Do you see the inventory running short?
The Corn Belt's sowing time is May.
The quantities being traded now are all inventory harvested last year.
And the new month coming from the new harvest is October.
July was the expiration month that decided the final rollover of inventory.
In other words, what I'm betting on is last year's harvest.
There's only one case where the price of that inventory rises.
When a poor harvest is already determined at sowing time.
"I'm sure."
- A loan of that scale is unreasonable. I'll try my best up to 1 million dollars.
"Our employees are going to open CMA accounts."
- Huh?
"And all those accounts will be tied together into a corporate CMA after a Bahamas corporation signs LPOA contracts, and then managed."
- ......That's illegal.
"No, it's not. It's for the employees' severance, and I won't charge a fee."
- You'll manage it without compensation?
"Yeah. I'll use it for employee morale. Come over and open them."
- Then, it might be possible.
"I'll fill your performance quota too, 2 million dollars."
- Uuuuugh. Alright! I'll do it!
As if she's going to lose anything herself, yet making a fuss.
"Did you sort out the conspiracy?"
- Mmm......! Arthur!!!
"Bring your toothbrush too."
- Eek!
"Don't want to?"
- ......That's not it.
"Come quickly. I miss you."
- ......You bad guy.
Click.
Diana said that and hung up.
She's not saying she won't come.
I should sleep with both Ara and Diana tonight.
Maybe it's because of the Sensory trait, but I feel particularly hungrier today.
"Me too?"
"Isn't that obvious?"
"Okay."
Ara nodded her head quickly the moment she felt my gaze.
Seems she likes it, which is good.
"So, Ara will be there too?"
Diana, who arrived at the EXE office, pressed her temples with her fingers as if her head was throbbing and spoke.
"Let's do the work first. Everyone's waiting."
"Don't change the subject!"
Was I too hasty?
"If you don't want to, there's nothing I can do. Let's open the accounts first and then talk."
"......Uuuugh! How did I end up......."
"Fell for me? Didn't know that."
"Shut up!"
Why isn't she denying it there?
Was she smitten?
It was just a comment to gloss things over, but did she really have feelings for me?
What's good about an uncle like me.......
No.
Right now, Diana is the older one.
"Hey! Over there!"
"Yes, yes!"
"Line the people up properly!"
"Understood!"
Diana, snorting through her nose, soon started receiving documents from the employees.
I don't know why David is so cowed like that either.
"If she really didn't want to, would you really not do it?"
Ara stealthily approached and whispered.
"No."
Whether with words or money, I would have persuaded her by any means necessary.
Or gaslighted her.
"Look for a good restaurant. See if they have good wine too."
"Yes."
At my words, Ara started calling here and there to look for a restaurant.
Maybe if I get her drunk like last time.
The face-to-face meeting was quite fun too.
'So, how much more profit will that be?'
I used the remaining time to pick up a pen and roughly calculate today's profit.
'300 contracts+a of call options in the CMA. 300 contracts in the fund, so.......'
The price calculation wasn't that difficult.
Roughly 5.6 million dollars?
That's just calculating Soybeans, Corn will probably rise similarly too.......
"Not bad."
Total over 10 million dollars.
A decent profit.
If I subtly leak this information, what reaction will Diana show?
Pride or incentive.
I'd cast my vote for incentive.