Chapter 298

The producer of the original version of Terminator 2 is Hollywood's famous for its extravagance and waste. Arnold Schwarzenegger not only got Hollywood in this project, but also in the previous 10 years, among the 100 North American companies randomly selected to issue junk bonds, 24 companies fell into bankruptcy or could not fulfill their repayment obligations like United Airlines Five times that of other companies.

Finally, the paper concludes that Michael Milken's theory of high-risk and high-yield junk bonds, which he has been claiming for the past decade, is fundamentally wrong.

As a result, junk bonds have no investment value, and many companies are only maintaining superficial prosperity with a kind of repeated financing similar to Ponzi scheme. The debt default of United Airlines is just the beginning of the collapse of the junk bond market after the 10-year boom. In the coming months, more companies and institutions will be dragged down by a large number of worthless junk bonds.

In addition to the Wall Street Journal's overall view of the market, a lot of negative news about the target of issuing or holding a large number of junk bonds has also been exposed.

The New York Times disclosed that the company's cash flow has decreased from US $1.5 billion at the beginning of the year to less than US $300 million. The Wall Street financial giant, which holds a large number of junk bonds and needs a high proportion of funds for turnover, may collapse at any time.

CBS has also been exposed by the New York Post that it holds up to $1 billion of United Airlines bonds and is the largest creditor of United Airlines. As the United Airlines crisis continues, it is conservatively estimated that the bond assets will shrink by more than 50%, and may even be completely cleared in the worst case.

The Washington Post is targeting Reynolds nabesk.

After the record $25 billion merger at the beginning of the year, Reynolds nabesk's share price did not rise sharply as expected, but fell 33% this year compared with the merger. The company's share in the tobacco market has also shrunk sharply, shrinking by 8% in less than a year.

What's more, after the merger of Reynolds and nabesk, which were all profitable, the loss this year alone is expected to exceed $1 billion. In recent months, the company has laid off 2300 employees in order to save money, and some high-quality assets have to be sold at a low price because of debt pressure.

All in all, the Reynolds nabesk merger is a complete disaster. Only a group of financial companies that got huge profits from it. The commission paid to Wall Street companies such as KKR, tezon securities and Merrill Lynch in the whole transaction exceeded $1.5 billion.

Although there are some comments supporting the junk bond market, all these negative reports are seriously hitting the confidence of countless investors under the intensive public opinion bombing.

After the weekend, the media remained clamorous, and the North American stock market fell again after opening on October 16.

The financial market may also feel the "spearhead" of the crisis, but the federal government is not doing nothing at all. Therefore, in addition to the continuous decline in the stock prices and bond prices of United Airlines and other enterprises, the overall situation of the US stock market has stabilized.

As a result, United Airlines, tezon securities, Columbia savings and credit bank and other enterprises are like old, weak, sick and disabled people who are only abandoned outside the sheep. Cersei capital and other capital forces behind the scenes began to reap their hunting fruits after several months of layout.

Simon knew that the crash would not last long, so he told Janet to clear the stock index futures contract held by cersei capital as soon as possible.

In the following week, the liquidation of more than 32000 S & P 500 index futures contracts brought cersei capital more than $500 million in profits, and other large numbers of short positions in stocks and bonds brought as much as $1.1 billion in profits.

Moreover, the scale of these short positions is less than half of cersei's total positions.

In the next few months, cersei capital will continue to make more profits as the domino effect of the North American junk bond market continues.