Chapter 197 Emerging Market Bonds
"Mexico's public debt is $110 million in U.S. dollars. Even if Morgan eats it all, it still needs citizens to buy it. You actually want our two companies to eat it all. It's simply crazy." Rockefeller Jr.
Wiping the sweat from his forehead, when he came to Oak Manor, he never expected to get such an answer when he talked to Sheffield about this matter.
So much? Sheffield actually didn’t know how much Mexico’s maturing debt was, but he didn’t expect it to be so much. Such a calculation is indeed beyond the reach of the two companies. Anyway, he doesn’t have enough cash here. If it’s all paid to Standard Oil
He would not agree to take this amount of money, and the allies also need to balance it.
Therefore, Sheffield’s accumulation of knowledge in this area is really ignorant, and the same is true for Sheffield United Company. It did not disappoint Little Rockefeller’s gambling evaluation.
Of course, this is just a small flaw. If you can't take it, you can't take it. It's okay for two companies to subscribe for a part at the same time, and then release other bonds for citizens to subscribe. This is what Morgan did.
Little Rockefeller nodded, feeling that the communication with Sheffield could finally continue, "The Morgans' own property is actually not that terrible. The main reason is that the allies around him are too strong. There are also many citizens who worship Morgan almost like a superstition.
The means of the financial industry, so when something good happens, the first thing to think about is Morgan. I don’t know how long it will take for your bank in California to gain this kind of trust. But you and I represent two companies, which should also cause a lot of damage.
momentum."
Since he was a novice in finance, Sheffield listened honestly to Rockefeller's ideas, and at the same time explained the relationship between United Company and the Mexican side. Because Mexico changes governments almost as quickly as Sheffield changes his underwear, United Company is on the Mexican side.
His connections are mainly concentrated in Coahuila, Chihuahua, Nuevo León, and Tamaulipas, the four states close to Texas, and he has good relations with local princes.
The relationship between the two parties is nothing more than agriculture, animal husbandry, industry and mining, and of course the previous oil exploration by the Rockefeller family. However, after the oil fields in Texas were discovered, Rockefeller Jr. has withdrawn from the local exploration team. I don’t know if he has returned now.
Because the central government of Mexico is in chaos and there are constant disputes between the conservative and liberal factions, it is very unwise to participate. Natural United Company is limited to developing relationships with some families in these states.
"I believe they have at least more connections than the Morgans." Rockefeller Jr. made his own judgment after hearing this. Sure enough, the same people like to be friends with the same people. The Sheffield family has connections in Mexico and his own family in Decker.
Sars' actions are similar. He does not interact with the central government and establishes direct relations with the two parties.
"Don't say that, who doesn't know that I am more patriotic than anyone else." Seeing Rockefeller make this comment, Sheffield quickly shook his head three times, "Let's get down to business, what are we going to do?"
"First of all, we must ensure that the bonds can be sold and cannot be sold into our hands." Rockefeller Jr. looked at Sheffield and said, "Only if more people follow you and you can make money, your voice in the financial industry will grow.
This is the most basic thing. Emotions and connections are non-existent. If necessary, I have to be ready to shoot the client's head off, no matter how much I like him/her. Once you can make the person who bought the bond lose money,
If you lose money, you may be the one who gets your head blown off."
That is to say, there was such a high risk that Rockefeller Jr. firmly disagreed with the two companies jointly taking up all the shares. Anything that seemed sure was not sure in the financial industry.
"First we should think about how to sell a total of 110 million US dollars of bonds. For many people, the name Mexico already represents risk. Although you may not think so." Rockefeller Jr. said cautiously
Open your mouth and say.
"Of course I don't think so!" Sheffield replied affirmatively. At least Mexico's mining industry is still very rich, and the collateral can also include railways, industrial mines and even oil. After all, there are nearly 20 million people, so it is not bad.
Get money.
In the Oak Manor, the two began to discuss under what name they would sell the bonds. Most citizens of the United States actually had no financial knowledge at all. They knew nothing.
In order to make bonds more sellable, Standard Oil and United Company are naturally two shining golden signs, but more intuitive methods can also be used, such as deception.
As for the current Mexican debt, the Mexican government does not have enough hard currency to repay the U.S. dollar debt, but it can issue more pesos to repay the peso debt. This requires packaging and thinking of a nice name. "Developing countries" are better than "underdeveloped"
"Country" sounds better, and "less developed countries" sounds better than "underdeveloped countries". Economic "recession" is frightening, but "negative growth" has a lot of sunshine. No one cares about "junk bonds", but they are renamed "high-yield bonds"
, you can sell it like crazy.
"Bring Thyssen Associates in, so that our side will be strong enough." Sheffield thought of this while chatting. It seems that Mexico was the main destination for the capital that overflowed from the German Empire in the late nineteenth century. If
I believe that adding German capital to the mix will greatly enhance market expectations.
Moreover, bringing in German capital also has a huge benefit, that is, the Germans will fight the British sooner or later, and the Allies' overall strength is far worse than that of the Allies. The First World War was a battle in which the Germans tried their best, and Germany's defeat was
It is destined that the German capital left in Mexico will not be harvested by then. It is better to harvest it yourself than to be harvested by others.
"That's okay!" Young Rockefeller thought for a moment. In this way, the risk will be further reduced, and with the participation of German capital, the chance of benefit will be greatly increased.
I made up my mind that there happened to be a Thyssen United headquarters in Texas, and this matter could be communicated to the Thyssen United headquarters in Germany through them. One day later, Thyssen United in the Ruhr area gave a reply.
, expressing great interest in this matter. If Standard Oil and Sheffield United Company join, the three parties can have a good discussion on this matter.
Intense telegraphs spread news on both sides of the Atlantic, no less than the ongoing Spanish-American War.
First, register a company in Frankfurt, buy Mexican public bonds, and then issue two new types of securities related to regulatory bonds through the company. Subscribe to the company's shares. The beneficiary of the charity can be anyone. The three parties make mysterious investments
investors and pay them $12,000. However, what they actually plan to sell to investors is not the stock, but the Mexican bonds in the hands of the new company. In order to obtain permission to issue bonds, the three parties can once again pass investors through German financial institutions.
The agency took it seriously so that it could avoid Morgan's ubiquitous observation in the U.S. financial industry.
The Tripartite Alliance would complete a foreign exchange transaction in advance to convert the peso repayments on the regulated bonds into U.S. dollars or marks. Everyone knew that the Tripartite Alliance would market the new bonds as U.S. dollar bonds, not Mexican government bonds.
As a compromise, the bond transaction memorandum of the issuer added a clause: The credit rating does not reflect the risk of exchange rate fluctuations. With this disclaimer, plus the gold letters of three major companies: Standard Oil, Sheffield Associates, and Thyssen Associates
Signboard. Then Mexico's public debt will suddenly become a hot bond.
Sheffield came up with a nice name for this public bond, which was called Emerging Market Bonds. Through a series of telegram communications, Rockefeller Jr. and Sheffield met at the Oak Manor in New Orleans, where they met from Texas.
Representative of Sen United Company, and during this period, news of a new steel company being acquired by U.S. Steel came almost every day.
"If we can get His Majesty the Emperor or the Prime Minister of Prussia to say a word about this move to expand influence in Mexico, I believe the effect will be huge." Sheffield said to the representative of Thyssen Associates, "
His Majesty the Emperor is the most powerful person in the world today. Unlike the Queen of England who is only in name only, as long as His Majesty the Emperor expresses approval for German capital entering Mexico, we will almost certainly make money."
Don’t all kinds of scams tend to rely on authority? Sometimes the existence of academic authority plays this role. The United States does not have this condition. The authority in the financial industry is Morgan. Could it be that Standard Oil and United Company went to Morgan?
, tell the other party that your actions in the steel industry have made us very dissatisfied, and are you now ready to poach you from Mexico?
If these two people do this, it is estimated that the financial industry authorities will not hesitate to identify the bonds in their hands as junk. Even if Morgan himself cannot get it, he will still cheat these two people.
Both Rockefeller Jr. and Sheffield are looking forward to this matter. William II, aren't you promoting the world strategy? Our two major companies have served dinner. As long as you say a word, at least in Mexico, the world strategy will be realized immediately.
.
"I want to report this to the head office!" The representative of Thyssen United did not refuse directly, but said that he really needed time to explain to the head office. He had already seen how to operate it, and the success rate was still very high as long as he did it.
.
"Okay!" Rockefeller Jr. and Sheffield looked at each other in agreement, and sure enough, Thyssen Associates quickly responded, "As long as public bonds are issued, we can try to get the Prime Minister to speak for it."
Chapter completed!