Tokyo entered February, and the bone-chilling cold still lingered in every street and alleyway. But for those with a keen sense of smell, a faint, exhilarating scent of blood had already begun to waft through the air.
Inside the spacious and bright Executive Office at Sega Headquarters, the heating was turned up high.
Takuya Nakayama was sprawled completely unceremoniously in the plush executive chair, his legs crossed and resting on the edge of the desk. He was idly flipping through a sales report analysis of Tomb Raider in the North American market, humming an unknown tune.
Bang! The solid wood door was thrown open in a hurry.
Director Hoshino strode in, forgetting to even knock.
This investment department big shot, usually impeccably dressed in a suit and tie, now had his tie loosened. He clutched a thin folder in his hand, his eyes gleaming with irrepressible fervor.
"Managing Director, those hungry wolves on Wall Street have finally lost their patience and made their move!" Hoshino pulled out a chair, flopped down into it, and slammed the folder onto the center of the large mahogany desk with a loud thud.
"Oh? So they've finally decided to take a bite?" Takuya Nakayama slowly set down the report, took his legs off the desk, and picked up the folder. A playful smile tugged at the corners of his mouth. "Let's see how these American beasts plan to carve up this Southeast Asian cake."
"The Quantum Fund is leading the charge, with that old fox Soros at the helm, backed by several top hedge funds from Europe and America," Hoshino said. Though his tone remained steady, his words came faster now. He pointed to the bolded figures in the folder. "Just yesterday, they borrowed about fifteen billion baht in the Bangkok offshore market!"
"Fifteen billion..." Takuya tapped his fingers twice on the paper and let out a low whistle. "That's quite an appetite. They've really smelled blood. They're diving in headfirst without even laying a napkin."
"And this is just the first wave of probing fire," Hoshino said, pulling a fresh chart from the folder's sleeve and spreading it on the desk. "They're fighting a full-scale, multi-dimensional war. They're dumping like crazy in the spot market, shorting heavily in the futures market, and simultaneously putting massive pressure on the interest rate market. This three-pronged attack is a clear shot across the Bank of Thailand's bow—a test to see just how thin their defenses are."
Takuya Nakayama stared down at the chart. The line representing the Baht-to-US Dollar exchange rate had plummeted at the very end, forming a jarring, cliff-like gap.
"That's a bloodbath," Takuya remarked, shaking his head. He looked up at Hoshino. "What's our move? The traders downstairs aren't getting swept up in the frenzy and rushing in to throw away our money, are they?"
"Not a chance," Hoshino replied firmly. "Our team held an emergency meeting last night, and the consensus was unanimous. The big investment banks have massive Baht positions they can leverage. They have the deep pockets to borrow and dump directly in the spot market. We can't afford to be that reckless."
"No kidding. Do you know how expensive it is to borrow?" Takuya rolled his eyes. "Sega's money didn't just fall from the sky. We earned every cent of that by selling game consoles one by one."
"You're absolutely right. Borrowing rates are already sky-high," Hoshino nodded in deep agreement. "If we follow their lead and borrow Baht directly to crash the market, and the Bank of Thailand decides to play hardball and hold out for three to five months—the exorbitant interest alone would eat our profit margins to the bone. We'd be using Sega's hard-earned cash to pave the way for Wall Street's vultures!"
Hoshino flipped to the next page, pointing at the dense grid of data and model projections. "That's why our strategy is still just one word: wait. Wait for Soros and his pack of bloodhounds to muddy the waters completely, to go toe-to-toe with the Bank of Thailand, and force a clear, decisive defeat."
"Any estimate on the timing?" Takuya Nakayama picked up the Montblanc pen from the desk, spinning it expertly between his fingers.
"It depends on how they react once they make their move. Within one to two weeks at most, they should force the Bank of Thailand's hand." Hoshino took a red pen and drew two sharp lines on the paper, his gaze piercing. "The moment we confirm the trend is irreversible, we'll launch our main assault with NDFs—Non-Deliverable Forwards. Simultaneously, we'll launch a secondary attack with short positions on the SET Index at the Stock Exchange of Thailand, kicking them while they're down."
Takuya Nakayama nodded in satisfaction.
He had been intimately familiar with these financial instruments in his past life.
An NDF was practically tailor-made for Sega's current situation—no need for the actual delivery of a massive principal, only the settlement of the price difference at maturity. This allowed for extremely high leverage. Most importantly, the trades took place in the offshore market, completely bypassing Thailand's damned foreign exchange controls. It was the perfect tool for a smash-and-grab operation.
"How are we managing the positions? Don't get carried away and bet the house," Takuya asked half-jokingly.
"Strict limits. No greed," Hoshino replied, writing several prominent figures on the paper. "The short position on the NDF will never exceed 8% of our total assets under management. The SET short positions will be strictly capped at 3%. The total capital deployed will not exceed 11%."
Takuya stared at the numbers on the paper and couldn't help but laugh out loud. "Hoshino-san, you're showing the composure of a true general now. You're being far more cautious than I imagined. The Sega Investment Department is sitting on such a massive cash flow, yet you're only willing to use 11%? This is nothing like your old style of charging into the stock market."
"Managing Director, you taught me that in the financial markets, survival always comes first." Hoshino put down the red pen and capped it with a deliberate click. "This eleven percent, combined with our doubled leverage, is already enough to unleash a tidal wave in Bangkok. The remaining eighty-nine percent must be held in reserve to guard against any potential black swan events."
"If Wall Street's crowd truly gets trapped, we'll have ample funds to retreat safely without taking a serious hit."
"Good! Proceed with your team's plan." Takuya Nakayama closed the folder, handed it back to Hoshino, and took a sip from the teacup on his desk. "Play it safe. Let the Wall Street grunts charge the front lines and draw the fire. We'll just sit quietly in the VIP box, munching on seeds and watching the show, with sacks ready to collect the cash."
Time wound forward like a clockwork gear, accelerating toward February 17th.
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