risk, but the pay-off would be big if it worked. I had no time to check it with Hamilton. If it was going to work I would have to act now.
I rang Cash. My heart rapped half a dozen times in the second it took him to answer the phone.
'I'd like to buy another fifty million if the price is right.' I was amazed at how steady my voice sounded.
Cash laughed, 'Way to go, Paul! Let's make some money here! Hang on.'
That didn't tell me anything. More sales meant more commission for the salesman. Cash, at least, would be making money. The real test would be when Cash came back with a price. If there were still millions of the bonds to sell, then he would be right back with a cheap offer. In that case I would have a fight on my hands to wriggle out of my purchase. If they really had sold the whole issue, then there would be lots of excuses and a higher offer.
I hung on for what was probably only a minute, but seemed like ten. Finally Cash came back on the other end of the phone.
'I'm sorry about this. I'm afraid we can only manage ten million, and then only at a price of 99.'
I could tell from Cash's voice he was expecting protests from me for offering fewer bonds than I wanted at a price half a point above his competitors' offer. He didn't get any. I wasn't angry. Here was an opportunity and I was going to make the most of it.
'OK, I'll take ten at 99 .'
I had to move fast. Next call was to Claire.
'Are you are still anxious to sell the new Sweden?' I asked.
'Oh, but yes of course,' she purred. 'I can get you some at 98.50.'
'Fine. I'll buy twenty.'
After two more phone calls I had managed to buy another $15 million at 98.60. That took my total holding to $145 million. I sat back and waited. I still felt tense, but this was the tension of the hunter, not the hunted.
It didn't take long. Within two minutes the lights began to flash with dealers bidding for bonds. Their bids rose from 98.60 to 98.75 to 98.90. Then David Barratt called.
'I'd like to buy twenty million of those Swedens at 99.10,' he said.
'That's a very high price for a bond with such limited prospects,' I teased him, unable to keep the euphoria out of my voice.
'It's a funny thing,' he said. 'The price fell as I thought it would. Then someone somewhere bought some bonds. Since then the dealers have been scrambling to cover their shorts, but haven't been able to find bonds anywhere. So they have driven the price up. The really funny thing is that a couple of my English clients who have been sitting on their hands for a month have just taken it into their heads to buy. They think the bond has value, and the rapid run up in price makes them afraid they might miss a move up in the whole market.'
I sold David $20 million and unloaded a further $75 million over the rest of the day. Claire had been especially imploring. BLG had lost a lot on that one. I decided to keep $50 million on the basis that it could move up further over the next week or two, and sold some other bonds to raise cash for the purchase. I totted up my profits. I had realised nearly $400,000 profit over the day, and had unrealised profits of $300,000 on the remaining $50 million.
I slumped back in my chair. I felt drained. It was as if I had been physically beaten up. The tension, the adrenalin, the sweat of the last few hours had left me limp. But I had got it right. In a big way. No matter what Hamilton might say, he couldn't deny that. For the first time in my life, I knew what it felt like to take on the market and win. And it felt good. I had shown myself that I could be a good trader, as good as the best. I hoped I had shown Hamilton too.
'Come on, smug features,' Debbie interrupted. 'If you have any more afternoons of successful spivving, let me know. I am sure the second-hand car business would give anything for one as talented as yourself. In the meantime, why don't you buy me a drink?'
'How come I always get to buy the drinks? Don't they pay you a salary here?' I said, putting on
I rang Cash. My heart rapped half a dozen times in the second it took him to answer the phone.
'I'd like to buy another fifty million if the price is right.' I was amazed at how steady my voice sounded.
Cash laughed, 'Way to go, Paul! Let's make some money here! Hang on.'
That didn't tell me anything. More sales meant more commission for the salesman. Cash, at least, would be making money. The real test would be when Cash came back with a price. If there were still millions of the bonds to sell, then he would be right back with a cheap offer. In that case I would have a fight on my hands to wriggle out of my purchase. If they really had sold the whole issue, then there would be lots of excuses and a higher offer.
I hung on for what was probably only a minute, but seemed like ten. Finally Cash came back on the other end of the phone.
'I'm sorry about this. I'm afraid we can only manage ten million, and then only at a price of 99.'
I could tell from Cash's voice he was expecting protests from me for offering fewer bonds than I wanted at a price half a point above his competitors' offer. He didn't get any. I wasn't angry. Here was an opportunity and I was going to make the most of it.
'OK, I'll take ten at 99 .'
I had to move fast. Next call was to Claire.
'Are you are still anxious to sell the new Sweden?' I asked.
'Oh, but yes of course,' she purred. 'I can get you some at 98.50.'
'Fine. I'll buy twenty.'
After two more phone calls I had managed to buy another $15 million at 98.60. That took my total holding to $145 million. I sat back and waited. I still felt tense, but this was the tension of the hunter, not the hunted.
It didn't take long. Within two minutes the lights began to flash with dealers bidding for bonds. Their bids rose from 98.60 to 98.75 to 98.90. Then David Barratt called.
'I'd like to buy twenty million of those Swedens at 99.10,' he said.
'That's a very high price for a bond with such limited prospects,' I teased him, unable to keep the euphoria out of my voice.
'It's a funny thing,' he said. 'The price fell as I thought it would. Then someone somewhere bought some bonds. Since then the dealers have been scrambling to cover their shorts, but haven't been able to find bonds anywhere. So they have driven the price up. The really funny thing is that a couple of my English clients who have been sitting on their hands for a month have just taken it into their heads to buy. They think the bond has value, and the rapid run up in price makes them afraid they might miss a move up in the whole market.'
I sold David $20 million and unloaded a further $75 million over the rest of the day. Claire had been especially imploring. BLG had lost a lot on that one. I decided to keep $50 million on the basis that it could move up further over the next week or two, and sold some other bonds to raise cash for the purchase. I totted up my profits. I had realised nearly $400,000 profit over the day, and had unrealised profits of $300,000 on the remaining $50 million.
I slumped back in my chair. I felt drained. It was as if I had been physically beaten up. The tension, the adrenalin, the sweat of the last few hours had left me limp. But I had got it right. In a big way. No matter what Hamilton might say, he couldn't deny that. For the first time in my life, I knew what it felt like to take on the market and win. And it felt good. I had shown myself that I could be a good trader, as good as the best. I hoped I had shown Hamilton too.
'Come on, smug features,' Debbie interrupted. 'If you have any more afternoons of successful spivving, let me know. I am sure the second-hand car business would give anything for one as talented as yourself. In the meantime, why don't you buy me a drink?'
'How come I always get to buy the drinks? Don't they pay you a salary here?' I said, putting on
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