New York, Tiger Fund.
"Not enough! Not enough!" Robertson shook his head repeatedly as he listened to the fund manager's report.
Two weeks have passed since they began raising funds in the Treasury market, and they have only shorted $500 million in bonds.
This amount of money is clearly a drop in the ocean for the next steps.
While time may be money for hedge funds, it is not a problem for funds investing in the government bond market.
Their clients are generally conservative and satisfied with stable returns; they are not interested in high-risk investments.
The manager in charge of handling government bonds said, "Those institutions seem to have noticed our eagerness to sell, so at current prices, there's probably not much liquidity in the market."
In this market, they are not the only ones who have the final say; there are many giants with more abundant funds than them.
Robertson sighed upon hearing this, after all, the government bond market wasn't their domain. "How's the Thai baht doing now?"
"The Thai Finance Minister resigned, and then on the 2nd, he issued a statement saying that he had the ability and confidence to ensure that the Thai baht would not depreciate."
“But our analysis suggests that Thailand is trying to cover something up, and it seems like they’re desperate.” Billy, who is in charge of the Asian market, paused for a few seconds before continuing, “However, BOT is still intervening in major currency markets, as well as the spot market.”
"In the futures and forward exchange rate market, the price of the Thai baht has returned to around 26 baht to 1 US dollar, which is a positive sign."
"However, there has been a liquidity shortage in the spot market for two consecutive days, and our judgment is that a new round of offensive has begun."
At this point, Billy glanced at Robertson's noticeably grim face and tentatively said, "The most crucial thing now is that if we can't increase our positions in time, even if the Thai baht falls, we will pay an extremely high price."
"The Finance Minister resigned... liquidity shortage... the second-ranking official's public speech..." Robertson kept repeating these seemingly unrelated things, then suddenly asked, "Besides saying he supports the stability of the Thai baht, what else did the Thai second-ranking official say?"
“…” Billy paused for a moment, then said, “Naturally, it’s to explain to the outside world why the Minister of Finance resigned at this time. It’s all in a diplomatic tone, and you can’t glean any useful information from it.”
“No, that’s not right,” Robertson retorted. “There must be a connection, otherwise Thailand’s No. 2 wouldn’t have gone to such lengths. By the way, how’s the investigation into the Thai baht forward positions going?”
His reaction was indeed quite strong, causing the managers present to abandon their dismissive attitude and begin to seriously consider the relevance of the situation.
Successful fund managers generally possess a keen intuition for every unusual sign that appears in the market, which is a key factor in their continued success.
"In terms of the long term, according to data sent back from Thailand, the amount of one-year US dollar loans flowing into Thai financial institutions in the form of forward contracts alone exceeds US$15 billion. This does not include capital outflows. Based on this, it can be concluded that Thailand's US dollar foreign exchange reserves are definitely not US$40 billion," Billy said expressionlessly.
Everyone was shocked when they heard this.
They never imagined that the Bank of Thailand would lie, or that the International Monetary Fund's data would be wrong.
But now the facts are clear, and everyone has to accept them.
"There's no time to lose, so we'll use our current assets as collateral to get funds from the banks as quickly as possible and short the Thai baht with all our might. This time, our target is two billion US dollars."
It must be said that Robertson's judgment was very accurate.
When Tiger Fund traders called forex brokers, news of the hedge fund giant's massive funding round quickly spread to every corner of the market.
Subsequently, multinational banks that traded Thai baht also received calls to borrow Thai baht, and the foreign exchange trading departments of commercial banks also learned about this.
Therefore, when news broke that Tiger Fund had re-entered the market, the entire foreign exchange market was abuzz with excitement.
This means that a new round of attacks is about to begin, and those who are capable of joining are all gearing up, ready to increase leverage and make a big splash.
Early the next morning.
Li Xiaoman arrived at the offshore company with breakfast in hand.
"Why are you here so early?" Chen Dong yawned, clearly lacking energy as he had only slept for a few hours.
“I was afraid I’d be too late and miss a good show.” Li Xiaoman grinned and pushed the breakfast in her hand in front of Chen Dong. “I made the pig brain stew with gastrodia elata at 5 a.m. This morning. Try it, it’s perfect to drink now.”
"Thank you, then I'll accept your thanks."
Chen Dong nodded; he did indeed need something to refresh and invigorate him.
However, Wangcai, Ma Guoliang, and others were not so lucky.
After breakfast, it was time for Asian trading hours.
On the Singapore Exchange, the Thai baht opened at an unusually high price of 25.88, a new high in recent times.
This price announcement immediately gave the sluggish Thai baht market a much-needed boost, much to the delight of the bullish camp, with funds pouring in to chase the price increase.
Wangcai was taken aback. "How could it open higher?"
"Don't rush, let things develop a bit more." Chen Dong lit a cigarette and then said to Ma Guoliang, "Manager Ma, prepare your plane tickets to Thailand. You can leave in the next couple of days."
"Mr. Chen, you mean...?"
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