MTL - Wall Street Legend-Chapter 387 rating agencies

  Chapter 387 Rating Agencies

  When people have money, they hope to become famous. Donating money and goods is part of the idea of ​​tax avoidance, but it also helps others, and the credit cannot be denied.

Mr. Dario of Bridgewater Associates recently had a project. At this moment, he asked Ye Dongqing and said: "By the way, I plan to hold a charitable donation in the near future. The scale is larger than today's one. I hope the rich can donate part of it." The funds are used for the research of some neurological diseases, mainly Alzheimer's disease and Parkinson's syndrome. My father died because of Alzheimer's disease, and there is still no effective treatment until now. I hope you will also can come to participate."

   This is to ask Ye Dongqing to donate money. For the purpose of charity, it is also part of the social responsibility of the rich, so it is not rude.

Ye Dongqing hardly hesitated, and said bluntly: "Yes, but I'm a bit busy recently, and I may not be able to be there in person. If I don't have time, I will let someone bring my check over there, OK? Regarding what happened to your father, I will terribly sorry."

   "It's okay, I like him better, but I have to admit that he was really an **** when he was alive."

   Probably because of some injury, Mr. Dario, as an American, has never shy away from such topics.

A little curious, but he didn't ask any questions. He chatted with Daario and Mr. Seth Klarman. After the time came, he walked on stage together. Old Soros still didn't show up until the host, Mr. James Simmons. After the opening remarks, I saw the figure of this old man who is all-powerful on Wall Street.

   Obviously late, but the applause is still warm. After all, it is Soros, the founder of the Quantum Fund has too many legends, as long as he is in the financial circle, he must know his name.

Sniping the British pound, sniping the lira, and sniping the peso, plus the Southeast Asian financial crisis in 1997, all behind him. This old man is naturally good at focusing on the national system, and distinguishing a country's economic environment from subtle points. Whether there is a problem with monetary policy, and then seize the opportunity to speculate together with hot money from various countries.

  May not make as much money as Ye Dongqing, but they have a huge influence. After successively conquering countries in the financial market in 1997, they have not recovered their strength until now, and they seem to be in a state of depression.

   Of course, these economies had problems before, otherwise they would not have been seized.

  In recent years, economists from all over the world have thoroughly studied the root causes of those crises and checked for gaps. Therefore, the old Soros has no dazzling achievements in the past few years, and he is just looking for more opportunities like ordinary investors.

  A speculator, like Soros, is enough to be regarded as the pinnacle, and he is still the first person in the hedge fund industry until now.

In fact, even if he does nothing, the currencies he is targeting will depreciate. Old Soros just accelerated the depreciation process. Ye Dongqing admires him very much. At this moment, she got up from the sofa and shook hands with the old man with a smile greet.

  …

  Seminars and the like, there are not many bright spots in themselves. It is nothing more than explaining their own ideas, and everyone discusses and argues together, trying to learn something from other people's ideas.

The scope of the topic is relatively open, you can say what you have, and it is other people's business whether to listen or not. Mr. Seth Klarman is holding a microphone at the moment, explaining to people the positive and negative impacts of economic globalization. From this era Looking at it, for the United States and American businessmen, the overall positive impact is greater than the negative impact. The US dollar is going global with globalization. Even if it is conservatively estimated, this dominant position will not be shaken in the next 30 years.

Ye Dongqing listened more seriously, as if he was listening to a lecture in a classroom. He is also engaged in transnational business now, so it is not difficult to understand, and his evaluation is fairly objective. For fund managers, it is very important to learn about global trade and policy trends. It is necessary, and many business opportunities lie in it.

  After more than 20 minutes, Mr. Soros Sr. talked about the global economic trend since the new century, which generally showed a strong recovery momentum. He also mentioned some developing countries and believed that they had great potential for development.

The general judgment is not wrong. The mistake is that he thinks that compared with China, India and Brazil have more potential in the future. As for the reason, it is still a cliché. During the inquiry, it was just a sentence that was more optimistic about Huaxia.

Old Soros only thought that he invested more in China, and he smiled happily when he heard it. He didn't mean to bully the younger generation at all. In fact, he admired Ye Dongqing's courage and extraordinary vision. The top financial circle in the United States is so big. They can always hear about some troubles.

  Finally it was Ye Dongqing's turn to speak. He didn't intend to be a green leaf today. When he picked up the microphone, a line of headlines appeared on the screen behind him—"Is the credit rating agency really worthy of people's full trust?" ".

  As soon as this line came out, people started whispering, and even Mr. Dario of Bridgewater Associates was a little surprised.

Credit rating agency, as an extremely important service intermediary in the financial market, is composed of specialized economic, legal, and financial experts. It is an organization that grades securities issuers and securities credit. It has been deeply rooted in the hearts of the people for so many years. Before buying and selling various securities, stocks, and foreign exchange, they will first conduct investigations through these credit rating agencies.

People can't figure out what went wrong. Judging from the meaning of the title, Ye Dongqing obviously wants to find fault. One of the cornerstones of the transaction credit system.

I only heard Ye Dongqing say: "I admit that those credit rating and valuation agencies can be of great help to us, but who has thought about what will happen to our economic system if the credit rating agencies are no longer fair and objective? What kind of injury? It would be fatal.

As far as I know, Standard & Poor's newly listed CDO category in the last two years has received AAA credit ratings as high as 85%, and Fitch has more than 65% of intermediate-rated CDOs (secured debt obligations). ) products have obtained AAA credit rating, but the actual performance of subprime mortgage bonds in the financial market is not in line with the overall credit rating announced by them. It can be said that the fact is just the opposite. It was as high as 8.6% in the fourth quarter, and it has risen again this year. They seem to be acquiescing to the excessively high ratings. I think the reputation mechanism is failing. These rating agencies are currently more concerned about charging issuers, resulting in a policy monopoly. Instead of continuing to be as objective as before..."

  (end of this chapter)