The market maker by Michael Ridpath Read Free Book Online

the day his top button had come undone, and his shirt cuffs had been rolled up once. He lit a cigarette. ''Coffee?"
    God knows how many I had had that day. But it was good stuff. I nodded. "Please."
    He strolled off, leaving me waiting uncomfortably. The boss was getting me coffee. Shouldn't I be fetching it for him? In a moment he was back with two cups.
    "Well, what do you think? Fun, isn't it?"
    "I didn't realize this stuff could be so intellectually interesting."
    Ricardo chuckled. "You thought it was all screaming down telephones."
    "I suppose so."
    He looked at what I was reading, a piece panning Mexico. "What's your view on that?"
    "It's well written. Persuasive. It makes sense to me."
    "I know. Charlotte has that rare ability as an analyst to take facts and speculation, mix them up, and come up with an opinion that will make money. And I can assure you, I value that opinion."
    He took a drag on his cigarette. "Take Mexico. Charlotte's worried about it. She sees another currency devaluation coming in the next month or two, and she thinks this one will scare investors abnost as much as the last one. And I agree with her."
    "So you sell Mexico and buy Argentina?"
    Ricardo smiled. "You're catching on. That would be the right trade. Argentina's a good choice too. The bonds are much too cheap. But it's not that simple."
    "Why not?"
    "Because Mexico wants to borrow a billion dollars. And that's a deal we have to win."
    "I see. But you don't want to sell a billion dollars of

    Mexican bonds to investors when they're scared about a devaluation?''
    "Dead right."
    I thought about it. "Can't you let someone else do the deal, then?"
    "Normally I w^ould consider it. Of course, we'd have to be involved. This is our market, we're always involved. Those are the rules. But maybe we could share the transaction with a couple of other houses and reduce our risk. The trouble is Bloomfield Weiss is bidding for the whole deal. And I just can't let them win it."
    "They're the people who stole your Eastern European team, aren't they?"
    "That's right. They're aiming for us. They want our number-one position. Until recently they couldn't give a danm about emerging markets, but in the last few months they've changed their mind."
    "You can head them, off, surely?"
    "Not so easy They're the top trading firm on Wall Street when it comes to the conventional markets. And they have ten times our capital. They'll use that to buy their way in."
    "So, what are you going to do?"
    "I really don't know." He pulled on his cigarette thoughtfully. I let him think, flattered that he felt able to share a problem like this with me.
    Eventually, he spoke. "So you like Argentina?"
    "Yes," I said.
    "Why?"
    I took a deep breath and answered him. "Their policy of fixing the peso to the dollar really seems to be working. And the bonds have come off a few points just because a big American money manager has been selling. They're good value."
    "Uh-huh. And which bond do you like in particular? "

    "The Discounts." These were one of the classes of Brady bonds that had been exchanged for old bank debt when Argentina had renegotiated its borrowings a few years earlier. "Am I right?"
    Ricardo smiled. "Did you know my father was Argentinian?"
    "Jamie told me."
    "Well, I have an old rule. Never let a trader trade his own country's bonds. He can't be objective. Now, I usually break my rule in my own case, but this time..."
    He picked up the phone.
    "Who are you calling?"
    He looked at his watch. "U.S. Commerce has a San Francisco office that should still be making markets. Hold on. Brad?" Pause. "Ricardo Ross. Where are you in Argentina? The Discounts ... In twenty million? ... Of course, ril wait."
    He grinned at me. "The guy's panicked. But I know him. If I ask him to make a market in size, he'll do it. He has to prove himself. Especially to me." Then back to the phone. "Sixty-seven to a half? That's a wide market, isn't it. Brad? ... OK, I know it's late. I'll take twenty at a