Chapter 1496 - 1494: Frenzied Buying

Chapter 1496: Chapter 1494: Frenzied Buying

On Monday, Lemar’s asset risk control not only didn’t rise, but instead saw a certain degree of decline.

Lynch’s silence made some investors a bit anxious, and coupled with today being the official issuance day, no one knew what kind of treatment this company would face.

Perhaps Lynch couldn’t liquidate the shares in his hand, so he would... just abandon this company?

Some investors began to leave and watch, after all, they had already made considerable money and were unwilling to take on greater risks.

In the financial market, there will always be speculators, always gamblers, as long as there’s a sufficient return rate, even if the success risk is only one percent, they’d be willing to try.

What if it succeeds?

The stock price maintained around four dollars, with a trend continuing towards decline. The subscription window at the United Exchange wasn’t busy; occasionally, some people would buy a few, a minimal amount, merely as a small, trial investment.

The brokers at the exchange would always create profits for the exchange during this time; the method for creating profit was quite simple.

They would call investors just starting their investment accounts, telling them that buying bonds at this moment was most appropriate since they were preferentially issued. Soon, they would be sold out, and eventually become another kind of "currency" in the trading market.

After all, bonds themselves can be bought and sold, without needing any identification proof for redeeming bonds, institutions recognize the bond, not the person.

After issuance, as the redemption time node approaches, the market price of the bond would gradually break through its face value.

For instance, if this tranche of bonds doesn’t encounter problems, within a year, its market trading price would be about one hundred and eight percent of its face value.

Meaning a bond with a face value of a hundred dollars can be sold to someone else for a hundred and eight dollars.

About two years later, nearly two and a half years when it’s almost redeemable, its price would adjust based on the public’s evaluation of redemption possibility, possibly dropping to tens of dollars, but also possibly sold for around one hundred and thirty dollars.

There will always be people running short on money, or those worrying about the future, who’d sell.

Actually, these bonds compared to simple financial investments, they are quite secure for novice investors, generally being able to be capital-preservation.

However, they also have an issue, which is that the cycle is too long!

Investments like stocks and futures are generally instantaneous, more convenient to manipulate.

Thus, veterans prefer pure financial products, whereas newbies are often fooled into buying stuff not quite suitable for them.

Aside from those dizzy-headed by stock brokers commissioning them to purchase bonds, essentially, no genuine major clients come in.

Lynch stood on the third floor of the United Exchange, behind the railing, holding a glass of wine, overlooking the entire exchange.

The United Exchange, as one of the Federation’s three major exchanges, is really quite enormous.

It has been expanded twice on the original basis, yet it’s still too small. Reportedly, the board of directors wants to "break it up."

This place, as an "old shop," will serve only major clients in the future.

And the new exchange at the end of the street would serve ordinary traders and retail investors, separating both sides, giving everyone what they most want.

The other two major exchanges have similar thoughts; the Federation’s development is too rapid. With the increasing immigrant population and economic and financial resurgence, more capital is flowing in, clearly, this place falls short.

Lynch’s lack of significant emotional changes was viewed by people as a facade of calmness, some even privately joked, speculating Lynch was nearly "wetting his pants."

Because from the current momentum, if the bond issuance failed, it would inevitably further impact the stock price.

Since bonds were not recognized by investors, this extreme situation would inversely affect people’s recognition of the stock. The miracle hasn’t lasted even a week and seems about to collapse.

Contrasting Lynch, not the least bit anxious, he just watched with a seemingly invisible smile, as if mocking the people beneath him and the matters.

Just when everyone was ready to see Lynch’s joke, suddenly all the phones on Bupen’s financial street buzzed busily.

The phones in the United Exchange as well, in an instant, the ringtone even covered the transaction voices!

Some people vaguely sensed something, their scalps tingling as they picked up the phone, putting it to their ears, then foolishly looked towards the trading window.

The next second, everyone sprang up and rushed there!

Lynch picked up the wine glass, took a slight sip, and the blinds in the office of the executive director on the fourth floor were suddenly lifted. The executive director’s gaze quickly locked on Lynch, appearing beside him in less than two minutes.

He wore a kind of look... like admiration, yet with a bit of fear, looking at Lynch, his mouth moved but didn’t know what to say.

Just now, Lemar National Bank announced to stabilize Yares’ price in the international forex market.

Lemar National Bank would increase its gold reserves by no less than three hundred tons and also increase foreign exchange reserves by no less than two billion Federation Sols, as critical margin for stabilizing Yares.

Lemar National Bank would, within a year, reclaim all existing old currency, reprint a fresh version, and even the draft design has been displayed in newspapers!

The Grand President personally expressed hope that after stabilization, Yares could join the World Development Committee’s settlement organization, making Yares one of the world settlement currencies.

Even if just a minor currency, this means the reach of Yares is beginning to grow, which can be called unprecedented positive news.

And the Federation Government International Affairs Department also issued a notice to assist Lemar Republic in resolving current economic difficulties. The Federation Government will unite with the World Development Committee to provide certain economic aid to Lemar.

This includes but is not limited to interest-free financial support of ten billion Federation Sols to Lemar Republic, mainly for economic production recovery and so forth...

Of course, reports won’t reveal that these ten billion Federation Sols will be paid in installments, and where they are used is also decided by the Federation.

People only can see Lemar National Bank would have millions of tons more gold, several billion to tens of billions more foreign exchange reserves in the short term, and the transparent newly issued Yares would join the international settlement currency...

These are all positive messages, not a single bad one!

And naturally, the asset risk control holding Lemar National Bank’s management rights became explosively hot at this moment!

Just in that moment, the stock price surged back to six dollars and continued to rise, rise, and rise again every minute!

And at the bond subscription trading window, now a long line had formed.

With Federation Government’s participation in supervision (the financial aid will have a supervision agency or team responsible for overseeing the use of this part of the funding, creating a supervisory influence on Lemar National Bank’s finances), investors don’t have to worry about it suddenly collapsing.

Added to this is Lynch’s reassuring name behind it, eliminating any last worries. Be it stock or bonds, both have become hot financial investment products!

"Mr. Lynch, did you already know this would happen?", the executive director couldn’t help asking.

Lynch glanced at him, neither admitting nor denying, just smiled and said, "I merely do my best to work hard, and the rest, I leave to the Lord!"

In reality, the Federation Government’s "financial aid" to Lemar Republic is the payment for Lynch’s Paradise Island Plan!

Yes, the Paradise Island Plan is constructing an impenetrable defense line southeast of Lemar Islands, building such large-scale fortifications requires money.

This money Congress will certainly honor, but Lynch used a... rather special method to persuade Mr. Truman, so this money turned into aid funds given to Lemar, then transferred into his own accounts by Lemar.

In this process, Lynch surely suffers some losses, yet compared to the money he earns, these losses are insignificant!

Moreover, this money is "borrowed" by Lemar Republic from the Federation Government, which needs to be repaid, eventually equating to Lemar Republic spending vast sums to construct these fortifications!

See, the Federation’s request is fulfilled without spending money, Lynch also receives the project funds, the only minorly wounded party possibly being Lemar Republic.

But from Lemar’s perspective, having received substantial Federation support, what they gain far exceeds the loss of ten billion!

Also, these ten billion are interest-free loans, repayment time isn’t urgent, they can fully repay slowly, everyone gets what they want, no one loses!

Congress also sees no reason to spend the ten billion needlessly, after all, it’s taxpayers’ blood and sweat, keeping it elsewhere isn’t better?

But what’s inside here cannot be divulged, involving many secrets, from Lynch’s viewpoint, this matter essentially was decided a few months ago.

Therefore, anything occurring previously doesn’t shake him internally; whether it’s poor sales or heat, it’s all within his calculations.

But others don’t know; everyone is stunned by this sudden change, apart from an uncontrollable admiration for Lynch, they have no other thoughts!

This is persuading two national leaders in one shot, achieving one’s goals through diplomatic policy, which is already beyond the capability range of the average capitalist!

They might be able to use wealth to control some politicians to speak for them, but they can’t use wealth to persuade two countries to reach opinion consensus on certain matters!

They can’t do it!

Only Lynch!