How Private Trade Programs Work In A Declining Economy




Maybe it is the degradation of the economies of whole, or the lackluster performances so many are experiencing in the stock market; whatever the true reasons, many high net worth Investors, as well as companies, are becoming more aware of the close-lipped industry of Private Trade Programs.As a flower welcomes the rising sun, outstretching its petals to the expectant warmth, apparently Private Trade Programs are doing their part in welcoming their own type of security and warmth for fortunate Investors. When it comes to Investors funds being positioned for the safest and highest rates of returns, they are slowly discovering the little known world referred to as Private Trade Programs (also known as Private Investment Platforms, Private Platforms, Private Trades, Private Trade Opportunities, Private Investment Opportunities, PPPs, PIPs, P3s,).Most don't fully comprehend what a Private Trade Program truly is. So, to answer this underlying request the myths will be squashed and by the end of this article, you will realize, these programs are quite simple to understand. A prevalent concern in this Private Trade world is that it appears to attract a faction of disorders and a growing level of fraudsters who prey on this weakening economy to advance their own motives. Fortunately, the further education of Private Trades is not in a trial and error phase and has witnessed actual, successful case studies to fall back on.There are educational sites focusing on Private Trade Programs, MTNs, BGs, CMOs as well as the leveraging of instruments, realizes that close to 100% of those who believe they are in the Private Trade business have never been involved in a single successful trade. These are "brokers" who extrapolate information they have heard and regurgitate it to unsuspecting Investors. It also includes Investors who have been led down a path of meandering turns where the end is always, "just out of reach". And for the fortunate few that actually do reach a legitimate trading platform, many simply don't believe it to be true and subsequently dismiss the opportunity before them and do not proceed to obtain the returns they can only dream of.With this being the case, the fog becomes more intense, forbidding the sun to show that Private Trades are what they are, have been in existence for decades and are available to those fortunate enough to be introduced to them through reputable, viable channels.Following will be a general overview with regard to how successful Private Trade Programs begin and their true "modus operandi".The first undeviating step is for the investor to fill out appropriate compliance documents and substantiate the validity of their assets with respect to their origins, place of dwelling and history. At this phase, it is discovered that most assets that lead nowhere are of non-cash qualities. These include certain types of bonds as well as a plethora of instruments that are either fraudulent or have been issued incorrectly that cannot be placed into trade.Following a successful submission from the investor's compliance package, the compliance leg of the platform will begin the due diligence phase to verify and validate the standing of the client, in many cases a corporation, as well as the origins of the funds. For liquid investors above $100 million (USD), this process of verification usually does not take longer than one to two days as these investors take precedence over those who carry instruments or liquidity which falls below this mark. For investors with funds below $100 million (USD), the experienced duration for compliance to review, verify and accept an investor into a Private Trade Program is roughly a week from received application.Once an investor passes compliance, the trade platform will initiate trade contracts and investor instructions. At this moment, for this is where many of the "purported platform's" true colors are exposed, the client is made aware that his investment will always remain in his account and control with no other signatories placed upon it. Should it be in a bank not recognized as a Top Twenty internationally recognized banking institutions, the Platform will request that the investor open an account, in his, or company's sole name, at an acknowledged International Banking Institution. It has been discovered that the top traders of these Private Trade Programs prefer the funds to be in an HSBC branch in London. Be wary of those so called "Platforms" who request an additional signatory be added or that funds be transferred into the trader's control. In infrequent occasions, to work around investor funds that aren't recognized appropriately or when a banking institution forgoes to stall the investor's funds, there has been evidenced a necessity to "conditionally assign" the Trader so that the funds can be properly appropriated for trade.For those investors who fall below the typically required $100 million (USD) level, don't be dissuaded, the sun has not set on your horizon. There is a specialized technique to allow certain investors to participate within this closed process through what is referred to as a fund of funds scenario. Typically the entry point is $10 million (USD) but we have seen them as low as $1 million (USD) as well.Following investor receiving a trade contract, documents are annotated with signatures by both the investor as well as the Trader or Platform Manager(s). At this phase, when investors become over-exuberant and begin to think that they can "shop" the Platform and then do not complete the trade transaction, the investor will irrefutably and permanently be barred from participating with any Platform on any Private Trade Program.Funds then become blocked for the specific enabling of Trade, as well as leverage, into the investor's specific Private Trade Program. Most Private Trade Program Traders need conditional assignments or the blocking of the assets in favor of them for the period of the trade so that leveraging against those assets can be performed. This is standard protocol and is disclosed within the trade documents that were previously signed.The Trader will then access a line of credit from the bank. This is typically done within one to three days following the verified block on the investor's funds. Traders are the only individuals who can propagate a line of credit against the blocked asset. As the Traders we are aware of trade through HSBC, this is why they prefer the funds to be within this banking institution.The reason a line of credit is drafted is so that bank instruments can be issued at a discount and placed into a successive order. Bank issues the instrument directly to the Trader for a significant discount. The Trader thereafter drafts a contract with a banking institution or equivalent entity who has agreed to purchase it at a higher amount. The trader buys the instrument and then sells it to a "commitment holder" who then sells it to their "commitment holder" for a higher price. This continues until an institution decides to hold it to maturity, collecting the coupon's interest.Investor receives payments, either weekly or monthly, depending on the valuation of the funds that were blocked and the request of the investor. Generally, the first payment is received a week following the beginning traunches directly to the originally requested Depositor the Investor has requested. It is evidenced that most U.S. Investors' funds are requested to be wired to international accounts they have set up. Following the disbursements, the Investor begins to fund his projects and humanitarian causes. Beginning in 2009, the required allocation between humanitarian profits and program profits will change significantly.To your investing success.--Daniel Bruckner is an active investor with hundreds of transactions to his credit. He works with clients on investment strategies which average mid double digit returns even in this declining global market. He is involved in REOs, BGs, MTNs, CMOs as well as high yield private investments programs. He has relations with high net worth individulas and investment groups.Source: http://www.articletrader.com
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