778: Chapter 50, The Continuously Falling Integrity_3 778: Chapter 50, The Continuously Falling Integrity_3 Once the clergy joined the buying frenzy, Hudson, realizing the market trend had ended, immediately ordered a halt to the action.
The pre-prepared two million gold coins, only caused a loss of one million six hundred thousand, but this does not affect the success of this speculation.
As the first to take action, the Mountain Domain clearly got the largest piece of the cake.
One million six hundred thousand gold coins bought bonds worth two million five hundred thousand face value; even if they were to immediately resell at current market prices, they could still make a hefty profit of several hundred thousand.
Let alone, due to the advantage of acting first, 40% of these two million five hundred thousand bonds are high-interest bonds, with annual interest rates reaching ten percent.
After the market stabilizes, selling off the ordinary bonds will almost bring in the capital, and the rest will be pure profit.
Though it was a little short of their initial goal – raising enough money to build a dock and shipyard, it made little difference overall.
If they withstand this shock, from a short term viewpoint, the Alpha Kingdom has no risk of defaulting.
Holding high-interest bonds and enjoying the returns for a few years, is also a good choice.
At least from the point of view of capital return rate, the bond yield is much higher than the return on farming.
In the absence of better investment targets, it was a good deal.
While Hudson was making a killing, the Kingdom Finance Department was in tears.
The crisis in Moxi Duchy had passed, but trouble persisted for the Alpha Kingdom.
The eight million cash that the kingdom had just raised was quickly paid out.
If not for the grace period of a month, they would already be down.
“What’s happened, I thought the market had warmed up?
Why are there still people redeeming bonds?”
Caesar IV asked, puzzled.
Even though bond prices vary from place to place overall they are all on the rise.
It’s only a matter of time before they return to normal prices.
In a situation where the market price is higher than the early redemption price, bringing the bonds for redemption is a lose-lose move.
Even if the amount held is huge, they can sell off slowly.
There’s no need to suffer the loss and directly take on the Kingdom Finance Department.
“Your Majesty, the clergy has made a move.
They have not even bothered to disguise their motive anymore—drain our cash flow.
Initially, the finance department wanted to sell a batch of recovered bonds in the dark to make a profit from the market, but outsiders are watching us too closely.
To stabilize market confidence, we had to openly destroy the recovered bonds.
If we want to stabilize the situation now, we have to seek help from the outside world.
The finance department has already been in touch with major commercial firms who have promised to lend funds, but their appetite is quite big.
Now, it depends on how much loss the clergy is willing to bear.
If they are determined to fight us to the death, the squeeze will become more severe.”
Marquis Delgado’s explanation advised enraged the kingdom’s high officials.
The clergy was actually buying bonds from the market to redeem —wantonly disregarding face.
But there was no other way, to stabilize market confidence, even though the Alpha Kingdom is penniless, they have to pretend to be rich.
“Then we drag it out with them!”
The clergy wants to buy bonds from the market, let’s make it easy for them.
The finance department continues to openly destroy the recovered bonds while I figure out how to bridge the money gap.
I remember the royal family still holds over three million war bonds.
Arrange for them to be sold to them in batches, and the funds obtained can be loaned to the kingdom.
If it’s not enough, connect with the nobles in the country.
The deals that can be arbitrage instantly, let’s see who can last longer!”
“Keep in touch with the commercial firms, deliberately creating an impression to the clergy that we are nearing exhaustion, forcing them to increase their investment strength!”
A furious Caesar IV said,
Now, he wasn’t going to bother with integrity.
If the clergy dared to take the first step, he would take it two steps further.