Then Sigurd called the steed Greyfell, and he proved, as Odin had promised, the best of all horses in the world.
And after awhile Regin spoke again to Sigurd and said: "It grieves me sore to see thee in this poor and humble guise at the court. But thou art a brave lad, and I will tell thee where there is much wealth to be won, as well as fame and honour in the winning of it, if thou wilt."
These words roused Sigurd's curiosity, and he asked where that wealth might be, and who had watch and ward over it.
And Regin answered: "Fafnir is his name, and he lies not so far away, on a lonely waste of heath. And when thou comest to that place, thou mayest well say that thou hast never seen or heard of such abundance of treasure."
"But I have already heard of Fafnir," said Sigurd thoughtfully. "Is he not the most terrible of dragons, so huge and evil that no man dare go out against him?"
"Not so," said the cunning Regin, "he is like unto other dragons of his kind. Men make too great a tale about him, that is all. But there, thy forefathers would have thought nothing of such a beast, but 'tis hardly to be expected that thou, though thou be of Volsung blood, shall have the heart and mind of those great ones whose deeds of fame still ring throughout the lands."
Then Sigurd grew angry. "Why shouldst thou lay on me the name of coward, who am yet but a child?" he said. "I have had as yet no chance to win renown. And tell me, why dost thou egg me on to this so strongly?"
"Hundreds of years ago," replied Regin, "when I was but a boy, I lived in the house of my father Hreidmar, the king of the dwarfs. His eldest son was named Fafnir, his second Otter, and I was the youngest and least; for I could never wield a sword in battle, though I was a cunning worker in iron and silver and gold. My brother Otter was cleverer than I, for he was a great fisher, and excelled all other men as such.
"By day he took the form of an otter, and dwelt in the river, and brought fish in his mouth to the bank. He lived usually thus, coming home only to eat and slumber, for on dry land he could see nothing. But Fafnir was by far more grim, as he was greater than us all, and he would have everything we possessed called his.
"Now in the waterfall hard by our house lived a dwarf called Andvari, who had changed himself into the likeness of a pike; and this he did that he might eat the smaller fishes, of which the river was full.