Private Placement Programs
1. What is the Private Placement Program
or the Secured Asset Management Program?
The “Private Placement Program” or the Secured Asset Management Program is an investment commonly used by the very wealthy where the principal investment is fully secured through a BLOCKING OF FUNDS ARRANGEMENT (MT 760) with the investor’s bank.
2. What kind of assets may be eligible under the program
and may be subjected to the blocking of funds arrangement ?
The following are eligible for blocking of funds arrangement under the program:
1. Cash Deposits (US Dollars & Euros)
2. Certificates of Deposits
3. Bank Guarantees issued by top international banks
4. Stand-by Letter of Credit issued by top international banks
5. Gold Certificates of Deposit
6. Collateralized Mortgage Obligation
7. Medium Term Notes
8. Treasury Bonds
3. Is the investor putting his principal at risk under the program?
There is no risk of losing the investor’s principal investment. The principal investment remains blocked for a specified period in the investor’s bank, ownership of the account remains with the investor, and funds blocked will not be moved, transferred or withdrawn during the period of blocking as specified. There are no up-front fees, no lien and no mortgage on the client’s asset. Client’s asset remains free of any encumbrances at all times.
After the investor’s funds are blocked, the PROGRAM DIRECTORS will put up, through their own credit facilities, counterpart funds equivalent to the hypothecated value of the blocked funds, to be utilized for trading purposes.
The investor is guaranteed by the PROGRAM DIRECTORS, by contract that they will receive what is in effect, a guaranteed percentage paid on a periodic basis upon terms as set forth in the contract.
4. What kind of instruments will be transacted under the program?
The instruments to be transacted under the BUY / SELL PROGRAM are fully negotiable bank instruments delivered unencumbered, free and clear of all liens, claims or restrictions. The instruments are debt obligations of the top one hundred (100) world banks in the form of Medium Term Bank Debentures of ten (10) years in length or Standby Letters of Credit of one year in length with no interest but at a discount from face value. These Bank Instruments conform in all respects with the Uniform Customs and Practice for Documentary Credits as set forth by the International Chamber of Commerce, Paris, France (ICC) in the latest edition of ICC Publication Number 400 (1983 Revision) and the newest implemented ICC Publication 500 (1995 Revision).
It must be stressed that, before an instrument is purchased, a contract is already in place for the resale of the Bank Debenture Instrument. Consequently, the PROGRAMMER’S funds are never put at risk. More so, with the investor’s funds which remain blocked in the investor’s bank in the duration of the contract. The trust account will always contain funds or Bank Instruments of equal or greater value.
5. What is the duration of the program?
Operations will take place approximately forty (40) International Banking Weeks per year with specific transactions taking place approximately one or more times per week depending on circumstances. Although there are 52 weeks in a year, there are only 40 international banking weeks during which transactions take place. An international banking week is a full week which does not include officially recognized holiday. However, this does not preclude that transactions may occur on short weeks that have a holiday.
6. Why are these “high returns with safety”
PROGRAMS not generally publicized?
The answer is that these programs have been available, though not widely known for years. However, because of the extremely high minimum requirements to enter them, only a few could qualify. The minimums have been 50 to 100 million dollars previously. Only recently have the smaller minimums been available so that more can qualify and yet have the opportunity to earn exceptionally high and safe profit yields. Also, the INVESTOR must be “invited in” to participate in these very limited enrollment programs. Individual programs can quickly become filled and are then closed to further investor participation.
The international trading of these banking instruments is a privileged and highly lucrative profit source for participating banks, and as a result, these opportunities are not generally shared with even their very wealthiest clients. It would be difficult, at best to entice investors to purchase Certificates of Deposit yielding 2.5% to 6% if they were aware of the availability of other profit opportunities from the same institution, which are yielding much higher rates of return. The banks always employ the strictest non-disclosure and non-circumvention clause in trading contracts to ensure the confidentiality of the transactions. They are rigidly enforced, and this further accounts for the concealment of these transactions from the general public. Participation is an insider privilege.
As a result, virtually every contract involving one of these high-yield bank instruments contain explicit language forbidding the contracted parties from disclosing any aspect of the transactions for a period of five (5) years.
As a result, there is difficulty in locating experienced individuals whom are knowledgeable and willing to candidly discuss these opportunities and the high profitability associated with them, without severely jeopardizing their ability to participate in further transactions.
7. How will the entire transaction become profitable?
As is quite evident from the foregoing, the key to profitability of these Bank Instruments lies in having the contacts initial resources, and where withal to purchase them at the level comparable to the issuing bank, and thus receive the maximum discount while also having the necessary resources and contracts to negotiate the instruments to the most profitable level of the retail or secondary markets. As one might imagine, those contacts are most zealously guarded by those traders regularly and commercially involved with these instruments. As a result, the real secret of successful participation lies in not the how, why and wherefore of these transactions, but and more importantly, in knowing and developing a strong working relationship with the “Insiders”, the principals, bankers, lawyers, brokers, and other specialized professionals whom can combine their skills and run these resources into lawful, secure and responsible programs with the maximum potential for safe gain.
8. Does the program adhere to
generally accepted international business practices?
The truth is that there is no smoke and mirrors involved. All of the programs are conducted under the specific guidelines set up by the International Chamber of Commerce (ICC and your local Chamber of Commerce is not affiliated), under its rules and regulations generally known as ICC 500. The ICC is the regulatory body for the world’s great Money Center Banks in Paris, France. It has existed for more than 100 years, and exerts strict control on world banking procedures.
9. Can we avail of this investment opportunity
direct through the banking industry?
The vast majority of U.S. citizens have not been made aware of the money making opportunities already available for fifty years to qualified European Investors through ICC-affiliated banks. However, it should be pointed out that a few major U.S. banks do participate from within their banking operations based in Switzerland and the Cayman Island, but they do not normally make their programs available to Americans living in the United States, and the chances are very great that your local branch manager has absolutely no knowledge of them, and may even deny their existence.
The banks themselves are NOT allowed to take part in the management of the programs, this would lead to a massive cartel generating huge unregulated profits. The banks do, however, manage to make substantial profits from the program in the form of fees. Program management is the job of the Providers, and there are only a few of them in all the world-wide banking industry.
10. What other opportunities are available to a qualified investor?
The providers themselves are also NOT allowed to trade or do business on their own behalf, so this presents an opportunity for qualified investors to take part and to profit as the initiators of the various transactions. Until recently these privileged opportunities were not offered outside of the Western European markets, but as the world economy has continued to grow, and more real money pours into the safety of West European markets they need to put this capital to work earning profits.
This has allowed for the door to be opened for the first time to American and Canadian Investors and provide them with a unique opportunity to accumulate capital in a confidential manner, and to decide for themselves how and where that capital will be disbursed. In the course of a calendar year a number of programs are introduced, by Money Center Banks in London, Antwerp, Amsterdam Frankfurt, Vienna, Zurich, Madrid, Major US. Banks such as Wells Fargo and other major banking centers.