voices like that, hers struck me as remarkably sexy. 'He often takes that sort of risk. Actually, he is quite good at it.'
For a moment Cash frowned in evident disapproval. Customers are not supposed to know what other customers are doing. In theory this is supposed to protect client confidentiality. In practice, I suspected that it was to prevent them ganging up on the investment bank in the middle. Cathy had shown her inexperience by breaking this rule.
She noticed Cash's disapproval and reddened. 'But I am sure you can keep that to yourself,' she added, glancing towards, but not quite at, me.
'Oh, of course,' I said.
Cash's grin returned to his lips. He cleared his throat. 'As you know, we have come here today to talk about the new high yield bond issue we are going to launch for the Tahiti Hotel. Cathy will outline the details of the deal to you. Before she starts, I just want you to know that we at Bloomfield Weiss think that this is a great deal. It's going to be oversubscribed several times. This'll be a blow-out. There's a lot of money to be made here for the smart guys who can decide fast.'
I wondered if there were ever any deals Cash sold that were not 'blow-outs'. 'Please go on,' I said.
Cathy began. 'You may be wondering what can be riskier than investing in a casino. You've heard about "the man who broke the bank at Monte Carlo". Why should you finance an operation that can be bankrupted by any lucky punter coming off the street?
'Well, when you are on the side of the house at the gaming tables, then your winnings no longer depend on luck, they depend on reliable percentages. Over the long run, the proportion of total bets placed that is won by the casino is remarkably constant. Different games have different percentages. Slot machines are a high-volume, low-margin business. The biggest profits are made from the high-rollers, the top thousand or so gamblers in the world, who bet, and lose, large amounts of money.
'So the secret to running a very profitable casino is to make sure that, when the high-rollers come to town, they spend as much time in your casino as possible. It is with this in mind that the Tahiti was conceived and built. It will be the most exciting and luxurious hotel and gaming complex in Las Vegas. The hotel has a South Sea theme with palm trees, lagoons and a specially regulated indoor climate that adds to the effect.'
She handed Rob and me a folder with glossy photographs of models of the new casino. The building did look impressive. Its two most distinctive features were a tall white tower, and a large glass atrium filled with trees and water. Rob, I noticed, scarcely looked at the folder, but kept his eyes firmly on Cathy.
'A good location is important to ensure that the casino attracts as many of the casual passers-by as possible,' she went on, handing us maps of Las Vegas. 'The Tahiti is located on the "Strip", between The Sands and Caesar's Palace. These are two of the most popular casinos in Las Vegas, and we expect that many visitors to these locations will want to step into the Tahiti to see what it is like.
'The casino has two thousand five hundred hotel rooms, including twelve luxury Imperial suites which will be made available free to the target list of the biggest high-rollers in the world. There is also parking space for four thousand cars and a one-thousand-seat showroom, where famous entertainers will perform every night. The aim of all this is not to make money, but rather to attract people to the tables.
'The whole complex will cost three hundred million dollars. It is just being completed now and is due to open at the beginning of September. I would like you to look at the financial forecasts I have here.' Cathy passed Rob and me two documents. 'As you can see, the casino's cash flow is expected to be twice as high as its interest costs in the first year. As you look further into the future, you will see that this ratio rises as the casino becomes more
For a moment Cash frowned in evident disapproval. Customers are not supposed to know what other customers are doing. In theory this is supposed to protect client confidentiality. In practice, I suspected that it was to prevent them ganging up on the investment bank in the middle. Cathy had shown her inexperience by breaking this rule.
She noticed Cash's disapproval and reddened. 'But I am sure you can keep that to yourself,' she added, glancing towards, but not quite at, me.
'Oh, of course,' I said.
Cash's grin returned to his lips. He cleared his throat. 'As you know, we have come here today to talk about the new high yield bond issue we are going to launch for the Tahiti Hotel. Cathy will outline the details of the deal to you. Before she starts, I just want you to know that we at Bloomfield Weiss think that this is a great deal. It's going to be oversubscribed several times. This'll be a blow-out. There's a lot of money to be made here for the smart guys who can decide fast.'
I wondered if there were ever any deals Cash sold that were not 'blow-outs'. 'Please go on,' I said.
Cathy began. 'You may be wondering what can be riskier than investing in a casino. You've heard about "the man who broke the bank at Monte Carlo". Why should you finance an operation that can be bankrupted by any lucky punter coming off the street?
'Well, when you are on the side of the house at the gaming tables, then your winnings no longer depend on luck, they depend on reliable percentages. Over the long run, the proportion of total bets placed that is won by the casino is remarkably constant. Different games have different percentages. Slot machines are a high-volume, low-margin business. The biggest profits are made from the high-rollers, the top thousand or so gamblers in the world, who bet, and lose, large amounts of money.
'So the secret to running a very profitable casino is to make sure that, when the high-rollers come to town, they spend as much time in your casino as possible. It is with this in mind that the Tahiti was conceived and built. It will be the most exciting and luxurious hotel and gaming complex in Las Vegas. The hotel has a South Sea theme with palm trees, lagoons and a specially regulated indoor climate that adds to the effect.'
She handed Rob and me a folder with glossy photographs of models of the new casino. The building did look impressive. Its two most distinctive features were a tall white tower, and a large glass atrium filled with trees and water. Rob, I noticed, scarcely looked at the folder, but kept his eyes firmly on Cathy.
'A good location is important to ensure that the casino attracts as many of the casual passers-by as possible,' she went on, handing us maps of Las Vegas. 'The Tahiti is located on the "Strip", between The Sands and Caesar's Palace. These are two of the most popular casinos in Las Vegas, and we expect that many visitors to these locations will want to step into the Tahiti to see what it is like.
'The casino has two thousand five hundred hotel rooms, including twelve luxury Imperial suites which will be made available free to the target list of the biggest high-rollers in the world. There is also parking space for four thousand cars and a one-thousand-seat showroom, where famous entertainers will perform every night. The aim of all this is not to make money, but rather to attract people to the tables.
'The whole complex will cost three hundred million dollars. It is just being completed now and is due to open at the beginning of September. I would like you to look at the financial forecasts I have here.' Cathy passed Rob and me two documents. 'As you can see, the casino's cash flow is expected to be twice as high as its interest costs in the first year. As you look further into the future, you will see that this ratio rises as the casino becomes more
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