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Chapter 600 - 600 141 Disposal of Non-performing Assets_3

600: Chapter 141, Disposal of Non-performing Assets_3 600: Chapter 141, Disposal of Non-performing Assets_3 We are just making friends, there is absolutely no insider trading.

At most it is just friends looking out for each other.

If it weren’t for those secret agreements, this explanation would be much more convincing.

Unfortunately, Hudson has always been skeptical of the friendship spoken of by traders, so he ultimately chose to go with the secret agreements.

If it were a major noble, a simple verbal agreement would probably suffice.

After all, Hudson isn’t asking for much, just a promise that for the next ten years, any goods purchased from the various trading bodies must be settled at cost price.

To reassure everyone, he even made a promise: goods purchased at cost price, will only be for personal use, and will not be sold to disrupt the market.

Of course, the goods here aren’t just ordinary items, but also include some that are rarely seen in the outside world.

The most important part of a trade is a win-win situation.

Undoubtedly, this is a typical case of resource exchange.

…

“Your Excellency the Count, are you really going to let go of all the bonds in your hands?”

Becoming friends makes many things simpler.

For instance, Hudson, holding a box of war bonds, is asking everyone to help convert them to cash.

“Without hiding anything from you all, I don’t have faith in the repayment ability of the Moxi Duchy.

The interest they promised on the bonds is just too high.

The interest alone from my 1.28 million bonds is as high as 160,000 gold coins each year.

And their total debt is over thirty times this figure.

According to preliminary estimates, the interest they need to pay each year won’t be less than 6 million gold coins.

To my knowledge, their government’s annual income before the outbreak of war was only around 6 or 7 million gold coins.

This is just the interest, they still need to repay the principal too, right?

Even though they promised to levy a debt repayment tax on the entire nation of nobles, most of the Moxi Duchy’s territory has become a battlefield and is now in ruin.

What can the noble lords use to pay their taxes?

In the short term, they can keep going by borrowing new to repay old, but given time, they are bound to run into trouble.

Of course, if a bunch of creditors can accept a debt delay, this would actually be a good deal.

Unfortunately, my situation is unique.

I must gather funds in advance for post-war reconstruction.

Even if I know that holding these bonds long term will yield significant profit, I have to bear the burden and sell them now.”

Hudson cajoles, half truthfully, half falsely.

All of the problems facing the Moxi Duchy are out in the open.

If the creditors aren’t panicking, that’s because on the Continent of Aslante, there has never been a precedent of a state defaulting on its debts.

The debt delay proposed by Hudson is the worst case scenario everyone can think of.

Under normal circumstances, as long as they can catch their breath, the Moxi People will continue to fulfill their debts.

Originally he didn’t need to disclose these risks.

Given that all of the representatives of the trading bodies present are savvy businessmen, it’s impossible to hide anything from them.

Besides, if he doesn’t warn them of these risks, and the major trading bodies retain these risk assets, when the debt bomb goes off, won’t everyone blame him?

“Your Excellency the Count, helping you handle these bonds isn’t difficult.

However, it’s impossible to mark up the price too much, after all, we have to consider the risk!”

An elder in a purple robe feigned difficulty.

In business, how could there be no risks?

Compared to civilian loans, the war bonds of the Moxi Duchy, already qualify as prime assets on the capital market.

In an era when gold and silver are used as currency, there is practically no inflation.

A stable yield of seven or eight percentage points is more than enough to get everyone started.

The war bonds issued by the Alpha Kingdom previously were hot sales, with an interest rate of ten points, it sets a perfect example.

“Mr.

Gustav, if you’re worried about the risk of the bonds, you can completely transfer the risk out.

When purchasing strategic materials from the allied forces, everyone can try to settle payments with bonds to test the response.

Even though they are war bonds, the war belonging to the Moxi People has already ended.

With the credit endorsement of the Moxi Duchy, these bonds can be used just like gold coins.

Moreover, these gold coins are assets with inherent returns.

The highest of which can reach an annual interest rate of up to thirty percent.

If you’re worried about risk, right now, holding these high-yielding bonds and going to the Moxi Duchy, they will absolutely not mind making an early redemption, or even talking about a premium redemption.

We’re all friends, there’s no need to beat around the bush.

This deal can also be split up, with each house taking around a hundred thousand bonds, it’s not a big deal.

Everyone, please use your professional experience to evaluate the bonds with different interest rates, and I will also evaluate them separately, and write them down on parchment.

If your average price is higher than my offer, or at least not lower than five percent of my offer, shall we do the deal at the average price?”

Hudson proposed with a smile.

Being able to sell off his high-risk bonds is good enough.

Plus, it’s now a premium sale, no matter how much the premium is, it’s all pure profit for him.

If held for the long term, unless converted into Alpha Kingdom bonds.

Even if they can’t be redeemed, he can use them to offset his taxes.

In fact, this is what he worries about the most.

The Moxi Nobles also hold a considerable amount of war bonds.

After the two-year tax exemption period ends, Moxi Nobles who don’t have the money will very likely use these war bonds to offset their repayment taxes.

He couldn’t possibly not acknowledge the bonds he himself issued, could he?

When currency is gold and silver, even if he wants to play a currency devaluation strategy to decrease the debt, it’s not feasible.

When the “repayment tax”, which was supposed to be used to repay the debt, becomes war bonds, that’s when the Moxi Duchy’s debt crisis will set off.

And the longer this bomb shell is left, the more powerful it will become.

That’s because after the war ended, in order to keep enough cash flow in the national treasury to handle the crisis, all the wartime bonds were given out as rewards to meritorious officers and to pay for owed administrative salaries, weren’t they?

From the outside, the debt of the Moxi Duchy is well over thirty million gold coins, but the real debt figure is only known to them.