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Hi, how are you?
Hey, Mr Bennet. Here we have.
- Let's see what you got. - You smell that? What is that?
- What? - What's that smell?
- Your cologne? - No.
- Opportunity. - No. Money.
- Oh... Okay. - I smell money.
- Okay.
- Chris... - Damn it. Sorry.
This is your basic mortgage bond.
All right? The originals were simple.
They were just thousands of triple A mortgages bundled together,
guaranteed by the U.S. government.
The modern ones are different.
They're private. And they're made up of layers of tranches.
Highest level, triple A, is getting paid first.
The lowest rated, B, is getting paid last, taking on defaults first.
Now, obviously, if you're buying B's, you could make more money.
But they're a little risky.
Sometimes they fail.
Chris?
Somewhere along the line, these B's and double B's went from a little risky
-to dog shit. Where's the trash? - Behind you.
I'm talking rock-bottom FICO scores.
No income verification.
Adjustable rates. Dog shit!
The default rates are already up from one to four percent, fellas.
And if they rise to eight percent, and they will,
a lot of these triple B's are going to zero, too.
And that...You're too close. ...is an opportunity.
Okay, you're saying that at eight percent the bonds fail
and we are already at four percent?
- That's right. - If they go to eight, it's Armageddon?
Yeah. That's right.
How come nobody's talking about this?
You're completely sure of the math?
Look at him. That's my quant.
- Your what? - My quantitative!
My math specialist. Look at him.
You notice anything different about him? Look at his face.
That's pretty racist.
Look at his eyes! I'll give you a hint.
His name's Yang!
He won a national math competition in China!
He doesn't even speak English!
Yeah, I'm sure of the math.
Actually, my name's Jiang and I do speak English.
Jared likes to say I don't because he thinks it makes me seem more authentic.
And I got second in that national math competition.
So, you're offering us a chance to short this pile of blocks? How?
With something called a credit default swap.
It's like insurance on the bond, and if it goes bust
you can make ten-to-one, even twenty-to-one return.
And it's already slowly going bust!
Ten-to-one? Twenty-to-one? No way.
And no one's paying attention.
No one is paying attention!
Because the banks are too busy getting paid obscene fees, to sell these bonds.
But wait. You are the bank.
Well, you work for the bank. I bet your margins are pretty nice and fat.
Let's not talk about my margins, by the way.
Being nice and fat, that's a nice shirt. Do they make it for men?
Aren't you the bank?
I work for the bank. I don't think like a bank.
Big bank, small bank, I like to make money. All right?
Let me put it this way. I'm standing in front of a burning house...
And I'm offering you fire insurance on it.
A's, zero. B's, zero. Double B's, zero. Triple B's, zero.
And then that happens.
What is that?
That's America's housing market.
verification - verificación
triple - triple
thousands - miles
thinks - piensa
think - pensar
these - estas
talking - hablando
standing - en pie
government - gobierno
english - inglés
bennet - bennet
double - doble
defaults - valores predeterminados
level - nivel
default - defecto
competition - competencia
getting - consiguiendo
front - frente
mortgage - hipoteca
mortgages - hipotecas
happens - sucede
chance - oportunidad
eight - ocho
banks - bancos
quantitative - cuantitativo
obscene - obsceno
could - podría
offering - ofrecimiento
taking - tomando
authentic - auténtico
tranches - tramos
credit - crédito
right - derecho
buying - compra
somewhere - algun lado
anything - cualquier cosa
money - dinero
chris - chris
specialist - especialista
about - acerca de
close - cerca
along - a lo largo
cologne - Colonia
called - llamado
going - yendo
guaranteed - garantizada
actually - actualmente
already - ya
attention - atención
bonds - cautiverio
notice - darse cuenta
armageddon - armagedón
basic - basic
blocks - bloques
highest - más alto
layers - capas
bottom - fondo
adjustable - ajustable
modern - moderno
different - diferente
racist - racista
simple - sencillo
burning - ardiente
house - casa
housing - alojamiento
little - pequeño
because - porque
lowest - más bajo
private - privado
insurance - seguro
likes - gustos
behind - detrás
makes - hace
scores - puntuaciones
margins - márgenes
income - ingresos
opportunity - oportunidad
national - nacional
smell - oler
obviously - obviamente
together - juntos
bundled - incluido
originals - originales
completely - completamente
rates - tarifas
sorry - lo siento
china - china
paying - pago
small - pequeña
percent - por ciento
first - primero
pretty - bonita
quant - quant
rated - [object Object]
jared - jared
return - regreso
risky - arriesgado
twenty - veinte
saying - diciendo
shirt - camisa
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