Chapter 822: Mortgage loan (booking for a ticket)

Microsoft’s shareholders want loans, and Microsoft’s stock is used as a collateral, and Citibank is certainly welcome. Bank, loan interest itself is one of the main income.
Of course, when lending, you should also check clearly, the ability of the other party to repay, whether the value of the collateral has a risk of depreciation, and so on.
Stocks are themselves a kind of securities with devaluation risks. Especially in the late 1980s, it was not just the island countries. In fact, the country was the first country with problems in finance and real estate, but they were very smart and took the disaster away. Coupled with the rise of the high-tech of the country and the war money, the country has easily passed the storm, and the island nation has been miserable. It will take at least ten years to recover.
At the end of the 1980s, banks also lost money, mainly in stock and real estate mortgages. For example, Donald Trump, is not the owed to the bank's high loans, which in turn threatens the bank's typical interest rate easing.
Others, simply went bankrupt, the stock became worthless, and the bank did not even recover the capital.
Therefore, since then, banks have become more stringent in risk assessment, so Feng Yu’s stock, the amount of loans that can be borrowed, is definitely lower than the market value at this time.
This point Feng Yu took into account, the amount of loans to be paid is also lower than the market value of the stock, but when Miles told him that he could lend the amount of money, Feng Yu was still somewhat unhappy.
"Myers, I use Microsoft stock as a mortgage, Microsoft's profitability, can't you see it? Stocks will definitely appreciate this year, how can there be a risk of depreciation? Just Microsoft's contract with computer companies, What is the amount? Not to mention that Microsoft's office software, servers and other sales are so good, the stock price appreciation is inevitable!" Feng Yu frowned.
Nima, Laozi took out so many stock loans, according to the market value, at least 1.5 billion US dollars, I feel that less than 1.2 billion US dollars, you are willing to lend me 700 million US dollars?
Do you mean that Microsoft's share price has a one-half risk in three years? This TM is not a nonsense!
"Mr. Feng, don't worry, the stock price itself is fluctuating. Our risk considerations are indeed higher, but should you understand it?" Miles said.
"I can't understand. These stocks, I have to borrow 1.2 billion US dollars. Is this a lot? The market value of these stocks is at least 1.5 billion US dollars! And I give you the interest, you ask yourself, is it very high? This time next year, The market value of these stocks may even double. Can these analysts of yours not analyze it?"
If the 1.5 billion stocks are mortgaged, but they can only borrow seven hundred million dollars, it is too dark! If Citibank insists on this, then Feng Yu can only choose to change a bank loan. It is a pity that he is a Chinese. If he goes to the island country to borrow, he will not enjoy the ultra-low interest rate. Otherwise, Feng Yu has already gone to the island country for loan!
"I am sorry, Mr. Feng, now that Citi is the loan condition. If you want more loans, then the value of the collateral will increase." The other party is so eager to get a loan, and of course he wants to lend more money to Feng Yu. Feng Yu only took out some of Microsoft's stock mortgage loans. If you can get all the Microsoft stocks out of the mortgage, the ratio will definitely not be so low!
The higher the loan amount, the better his performance will be, and the more money he can get at the end of the year.
Originally, Myers thought that after he said so many conditions, Feng Yu would definitely increase the number of shares collateralized. He also took a step back and increased the amount of loans.
But he did not expect that Feng Yu stood up and turned and left.

Mr. Feng, our Citibank loan terms are the same as those of other banks. You will not get any better conditions than any other bank in New York.
Myers shouted,
If you are willing to mortgage more Some stocks, I can be the master, give you an increase in the amount of money."
Feng Yu did not say a word and walked out of his office.
This time, Miles panicked, Feng Yu did not hesitate to leave!
The sentence he just said is really not to lie to Feng Yu. Banks in New York, for stock mortgages, are indeed very strict, and the proportion of lending is indeed very low.
However, Feng Yu is not the stock of the general company, but the current potential for appreciation is huge. The stocks of Microsoft companies that the stockholders are chasing, the ratio of lending will never be so low!
When Miles saw Feng Yu leave, he immediately called several bank executives who had good relations. Although they were competitors, they often cooperated at certain times.
For example, this time, Miles persuaded everyone to unite to lower the amount of Feng Yu’s loan and give the Chinese a lesson. Of course, if Feng Yu wants a loan in the end, it is also a joint lending.
Those people have promised on the surface, but in fact they will obey, and Miles is not sure. Of those bank executives, of course, there is a surface promise, but secretly waiting for Feng Yu to find the door, what makes them surprised is that Feng Yu did not contact their bank at all.
At this time, they can't sit still, and regardless of the initiative to contact, will let the two sides reverse their status, even if they give Feng Yu a high loan ratio, I believe that the above will agree, they believe that Microsoft's stock will not fall!
But after they contacted Feng Yu, they were all rejected by Feng Yu. Although they have raised the loan amount, Feng Yu still did not agree.
Myers couldn't sit still, and took the initiative to call Feng Yu, saying that he had read the wrong day. The amount of the shares of Microsoft, the amount of the loan, is definitely not so low. Feng Yu said that the loan was 1.2 billion US dollars. He kept up. After reporting, the above has been promised.
At this time, Feng Yu smiled coldly: "You promised? I don't want to borrow from your bank. And Mr. Myers, I will talk to your bank president, I think you will have trouble."
Myers was shocked. He knew that it was a wrong decision to deal with the average person to deal with Feng Yu. If the matter was known to the president, he would definitely ask him to resign on the board, and where did he go? The location of such a generous salary?
He is the only executive at Citi who has not received equity awards. He wanted to rely on this performance to get some equity incentives at the end of the year, but now it seems that not only the equity incentives are gone, his current position, It may not be able to keep it!
"Mr. Feng, I think there is a misunderstanding between us. I want to explain it to you in person."
"No, I have no time to listen to your explanation." Feng Yu's mouth was smiling.
This Miles, do you really think that Citibank has more cattle? There are so many banks in the world. If you don’t borrow from Citibank, don’t you give loans to other banks?
Feng Yu has already negotiated with HSBC, borrowing a billion dollars from HSBC at a very low interest rate, and the stock market value of the stock that needs to be mortgaged, but only $1.1 billion, the condition is different from that of Citi.
Of course, this is not only the role of Microsoft's stock, but also Li Zezhen and Fu Guangzheng gave a guarantee. Feng Yu will gradually take all of Microsoft's stocks to mortgage loans, and then make a big profit this year in the US stock market.
As for the Miles, let him get the lessons he deserves, a lesson that will last a lifetime!