These details are issued to any willing investor, company or private, that wishes to know more about the potential investment strategy and for their consideration of entry into such a plan to suit their future strategies as they see to be appropriate.
Our company is not a licensed trader nor investment manager and makes no claims as to the veracity of that which any reader shall review from this point onwards, and, indeed said writer makes no declarations that could be construed as a solicitation of funds or securities within the meaning of the SEC 1933/1934 guidelines regarding securities offerings or funds investments. This report is merely an overview of a hypothetical investment situation and must always be regarded as being theoretical. We suggest that any investor requiring definitive information to rely upon to further matters does not read this report and investment scenario and travels to Europe to the appropriate financial Center and appoints a financial banking consultant to further their enquirers.
Relevance to the 3rd party investor
Within the International capital markets the daily trading in obligation notes issued by financial institutions of a credit rating of AA+, bought and sold between various licensed financial institutions on a daily basis, trades at volumes into the hundreds of Billions of US$ and €uro’s every day. This side of the capital markets is highly liquid and creates yield of exceptional levels for the participating institutions and Traders. The financial instruments involved are normally MTN’s (Medium Term Notes) , Bank Guarantees and SBLC’s which are purchased by the buying entities to sell on to qualified exit buyers in the primary and secondary markets.
These contracts are engaged by the Traders for the purchase and sale of the instruments against fixed contracts with each side. Purchasing is done at a “deep discount” and onward sale at a “Premium at marked to market” rates. No instrument is purchased without there being a guaranteed “exit buyer” in existence that has already booked the purchase with the Trader. These “exit buyers” are usually Hedge Funds, Pension Funds, Insurance Companies, financial investment foundations, and investment banks that need such guaranteed term instruments to stabilize their balance sheets with top grade Fixed Income instruments to offset some of their more speculative investments and to ensure that at maturity their investors funds have a strong guarantee of payment at maturity.
The relevant aspect to investors is that due to the rules of solicitation and arbitrage prohibitions in the capital markets, in that the institutions cannot enter the market to purchase the instruments on their own behalf’s, as this would be “causing” the instrument to be issued which is not allowed. The instrument, if initially purchased by a third party, is legally available for the “exit buyers” to purchase and it is these instruments that are purchased by the Desk Trader and then simultaneously sold to the “exit buyer” on pre-contracts recorded on the trading desk ledgers. All trades are conducted electronically and are regulated on a daily settlement basis (T1 to T3) with proceeds aggregated into a trade settlement and disbursement account fully supervised by the trading bank.