Reborn with Consumption System-Chapter 651 - 282 Another Trap_3

"The plan is good, but isn't our bank's profit too little? An overall return of just 5.5% for off-balance-sheet business, that's a huge loss..."

"It's a minimum of 5.5% return."

Han Lie sternly corrected. Then, under the other party's inquiring gaze, which clearly sought further details, he slowly explained his design.

"Last time we were pressed for time, so I didn't make it very clear..."

President Jin smiled without saying a word. He was fully aware that Han Lie had intentionally omitted the details, so he listened even more attentively.

"Once SAIC's subsidiary obtains the 10,000,000,000 corporate bonds, the funds can only be used for principal-protected investments, supplementing working capital, and general preliminary project construction.

Therefore, the only thing they can provide to your bank is a fixed annual interest of 4.2%.

However, at the same time, the group headquarters will no longer need to allocate project funds to the subsidiary. Therefore, it will transfer the 10,000,000,000 in subsequently freed-up idle funds to the Securities and Finance Department for investment.

The Securities and Finance Department will take on the 7,500,000,000 Jinguang project and then use the remaining 2,500,000,000 to purchase the tiered funds issued by our fund subsidiary.

The fund has a cap of 5,000,000,000. It's a mixed-type fund with an 18-month lock-up period. The senior tranche offers a 6.5% fixed return, while the risk and return for the junior tranche are unlimited.

The only underwriter and custodian is your bank, with an underwriting fee of 1%, and a custodial fee of 1% per annum.

By this point, the spread has basically been bridged.

The SAIC Securities and Finance Department is expected to purchase 1,500,000,000 of the senior tranche and 1,000,000,000 of the junior tranche.

The remaining 1,000,000,000 in the senior tranche goes entirely to your bank, and you can manage it at your discretion. I won't presume to comment further on that.

As for the remaining 1,500,000,000 in the high-risk junior tranche, if your bank can sell it, please do. If not, I will find someone to cover it.

How about it, President Jin, are you satisfied with my solution?"

Old Jin was completely stunned.

Wait, you're trying this hard just for that little bit of intermediary fee?!

In fact, in Jin Yu's view, Han Lie had many ways to cover the deficit, yet he chose the riskiest one.

He frowned, scrutinizing Han Lie. "What do you plan to do with this money?"

Han Lie admitted candidly, "Mainly to invest in the major stock indices, and it's also possible to allocate some for fixed deposits at a certain bank."

The interest from a fixed deposit compared to the cost of this fund is practically laughable, so it must be for some special purpose.

So, the main way to profit is through investing in the stock indices?

Old Jin couldn't help but ask again, "Do you have so much confidence in the stock market for the next two years?!"

Han Lie laughed, his smile radiant.

"Jin Hang, if the leadership at the guarantee company asked me this, I might possibly answer."

The implication was clear: you shouldn't ask.

President Jin realized this and fell into deep thought.

In the entire scheme, all the risk had been taken on by Han Lie, and Magic Capital Bank couldn't possibly incur a loss.

Er, no, the correct way to say it is—they are guaranteed to make a killing.

If they were willing to put in the effort, they could use their own capital, perhaps by routing it cleverly, to purchase that 1,000,000,000 senior tranche.

If they didn't want to bother, they could also sell it to large clients. Fixed-income funds able to deliver 6.5% are now very rare and definitely a powerful tool for attracting clients.

Of course, the so-called senior tranche isn't strictly guaranteed for principal or interest. If the junior tranche loses all its value and that still isn't enough to cover the senior, there's a possibility of default.

But what is the probability of that happening with Han Lie?

Jin Yu had specifically watched Han Lie's SPD Bank lecture video again.

At the very least, up to this point, Han Lie's judgment of the market trend has been very accurate.

So... should they go for this deal?!

As Old Jin began to consider this perspective, in fact, he had already fallen into Han Lie's trap.

Upon careful consideration, how many birds was this one stone hitting?!