BiggerPockets

Originally posted by "brucewaller"

Where can one get information about mid-term notes? I have this come across my desk lately and want to know more.

Please help.

What is it that you would like to know bruce and what is it that you wish to accomplish with these MTN's?

Originally posted by "brucewaller"

I need to know more because of my sources is making a killing with them.

How can you really be sure? Most people who try to make money with MTN are chasing shadows and will switch to something else.

Some aspects of MTNs involves SEC regulation. Is your source a true friend? If they are then get them to explain the legal details and other business issues.

Consider joining an investment bank if they will hire you.

John Corey

PS. MTNs, Nazi gold and other deals float around on the web. Many are just scams or people tilting at windmills.

Gold, MTNs, Bank Guarantees (BG), and Letters of Credit (LC) all have real business purposes. Some of the time large profits can be produced for someone who can put together a deal. Most of the time it requires specialist knowledge and networks of contacts in a sector and maybe licensing from a national regulator. In all such markets there are cowboys who talk a good game and maybe have done a deal or two. The cowboys switch from mobile phone sales, to timeshares, to MTMs and gold, real estate bulk REO sales and self helo seminars. Where ever a fast talking source can make money by talking up the opportunity to others.

If you want a good MTN guy let me know...i have a guy here in LA who is very connected.

Originally posted by "brucewaller"

Where can one get information about mid-term notes? I have this come across my desk lately and want to know more.

Please help.

Hi Bruce, I am currently involved with MTN's, firstly make sure friend has a platform, as from this platform he will trade from, also are you acting as a agent or investing, as I offer £30,000 or $60,000 for anyone that brings in business for me, the minimum investment is 1 million pounds sterling and the returns are up to 30% per month!!!, I got guys who are acting as referal agents and clocking up to half a million US dollars in referal fees in a few months as the more business they get I give them £50,000 per transaction they get, we trade in Zurich under EU law so there is lot of paperwork and vetting so not everyone can invest and money has to be clean---very clean

I have a contact that deals almost exclusivly with MTN's. She is who has been sending me many of my leads for REO's. Just like with MTN's many of the REO leads turn out to be people talking crap! She however has a number of pending deals and the numbers are outragious. She deals with pension funds from what I gather. As far as legal issues they are securities so to be a " mandate" or " direct representive/trader" you need a series seven stockbrokers licence, which you have to be sponsered to get. If you are a " cowboy" you can if your lucky enough to find someone who will deal with you be an intermediary paid as a benificiary on the buyers side assuming the deal closes. Basicly they are not " notes" in the conventional sence they are invoices on services rendered from sources like GM for instance. If I'm wrong I'm sure it won't be ten min. before someone here straightens me out! I'm fairly sure I am correct though.

To what extent are you interested buyer? rep.? intermediary?

you can e-mail me

I'll let you know what I know.

This is what I sent the new member. He then replied is there no other way to get involved?

I told him if he had buyers he could get involved as an intermediary paid as a benificerary on the buyers side. If he could find someone serious that would work with him or he could get a series seven stockbrokers licence.

He asked about getting a series seven?

I told him to look it up on investopedia. There is a study guide there offered for free.

PS you must be sponsered.

Large Institutional Pool Purchasing Overview
Who's allowed to buy these notes at a larger discount?

Because of their sophistication, institutional investors may often participate in private placements of securities, in which certain aspects of the securities laws may be inapplicable.
For example, in the United States, a private placement under Rule 506 of Regulation D may be made to an " accredited investor" without registering the offering of securities with the Securities and Exchange Commission.

In essence institutional investor, an accredited investor is defined in the rule as:

A bank
Insurance company
Registered investment company (generally speaking, a mutual fund)
Business development company, or small business investment company
An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
A charitable organization
A corporation, or partnership with assets exceeding $5 million
A director, executive officer, or general partner of the company selling the securities
A business in which all the equity owners are accredited investors;
a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase
A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

Any questions email me.

Bruce, and the few others who wanted to know more...

[SOLICITATION REMOVED]

Hope this helps.

This information only:

Bank Instruments Transactions:
Bank Instruments Goes thru Trade Platform or Private Placement.
Buy low and sell at a higher price.

Why Do Major Banks Sell Short and/or Medium Term Debenture/Debt At
Steep Discounts ?

The reason why a Top 100 World Bank would sell instruments at ANY discount rate is the "fractional banking system". Depending on jurisdictions, for every $1 in a bank's capital account, the bank can leverage that money to lend a multiplier effect of dollars -- typically ranging from 10 or more times. So, if a bank sells (as a silly example) a $100,000,000 MTN instrument at 30%, it has $3+ Million in its capital account and can lend said $3+ Million annually for the duration of the instrument. The offset is the interest the Bank has to pay on the MTN. The other important factor to appreciate is that this fractional system and MTN-issuance is mainly "off-balance sheet" financing, so such multi-billion dollar MTN-issuance does not negatively effect the capital structure or integrity of the issuing banks (which are usually ONLY the top 25 international Western European banks). We are not dealing with MTNs issued by small banks or banks with weak balance sheets.

What is the Cutting House's Role ?

The Cutting House is an extension of the Federal Reserve, which sets policy.

The Cutting House can sell at such a low amount because its minimum tranche is $500 Million and its Minimum contract is usually measured in the tens of billions of dollars. It is the Volume of the transaction which warrants the low price. If the minimum tranching is under $500 Million, Collateral Providers (which is one rung beneath the Cutting House, and which usually buy from the Cutting House) sell at minimum prices in at least the 60s%. (for MTNs) and 70s (for BGs)

The Cutting House is at risk. It places its assets (usually gold deposits) at risk as collateral to the issuing banks, to guarantee that cash or liquid assets exist to honor the deep-discount contract. That is why the Cutting Houses prefer buy-sells: they are confident that their exit buyers (who buy at increments of LESS than $500 Million, but are track-record performers) will not default. These exit-buyers are wholesalers, who buy in large amounts and then resell to smaller wholesalers or retail buyers in smaller increments. The final end-user is typically an annuity or pension fund, which often buys at prices as high as in the low-90s.

The 30 point maximum (20 points if the Buyer is USA-based) add-on to the sales price is a range established by the Fed. Not all sellers resell at the maximum spread -- it depends on whom they are reselling to. This "spread" applies only to Fresh Cut sales, not to mark-ups in the secondary (seasoned paper) market.

(4) How do I know the Cutting House can perform, and what does it do ?

How do I know that the Cutting House is real ? If they are direct to the most senior officers of several major W. European banks (e.g., Credit Suisse, Royal Bank of Scotland, etc.) who sell to and/or (on a case-by-case basis) deal with the Cutting Houses. We are also direct to several of the major Private Placement Program traders in Europe. Some deal with our Cutting House, but all do the same thing: buy low and sell at a higher price.

When a Client does a deal, the closing is bank-to-bank. The Client's bank issues a conditional swift of funds, meaning that its funds are not spent unless and until the other side commits to transmitting the contracted-for MTNs. There is no "trust me" involved. IF AT ANY TIME there is a non-delivery of the contracted financial instru-ments at the contracted price, the entire contract is ended for non-performance. No Buyer is locked-into paying for instruments it will not receive.


The reason why the System is designed to assist the "buy and resell" wholesale mar-ket rather than the "buy and keep" retail market (which usually buys on a collateral-first format <the Provider ships the instrument to the Buyer, who then pays for it via a bank line of credit, or on a delivery-versus-payment "off the screen" mode> as opposed to a funds-first format) is because the Contract typically requires that a portion of the resulting profit (i.e., the 20-to-30 point mark-up, net of banking and financing costs to the Buyer) is used to fund projects -- developmental, humani-tarian, educational, infrastructural, etc. -- around the world. This is one key reason how major capital projects (some with minor profitability and/or high-risks of pro-fitability) are funded. This is how many relief efforts and infrastructure in war-torn areas are financed. The more military conflict and destruction and natural disasters there are, the more pronounced is the need for funds -- and one major SOURCE of such funds is a portion of the "price spread" on these funds-first and/or collateral-first purchases and resales. The Buyer must COMMIT to spending a portion of its huge profits on funding internationally approved projects or causes. If the Client/
Buyer does not have such projects, the Collateral Provider/Cutting House can provide it.

The Cutting House can sell EITHER a DIRECT SALE or a BUY-SELL ** Contract (** Buy-sell means that the Cutting House provides BOTH the Fresh Cut Instruments, and the exit-Buyer to whom you can immediately resell your instruments.)

(5) Is A Bank Instrument Buyer at Risk ?

A Buyer's funds are NOT AT ANY effective RISK. A Buyer's funds are ALWAYS used to buy liquid financial instruments which are worth significantly more than the applic-able purchase price: the acquisition is often collateralized at close to a 200% level. Example: buy at 30% and have a ready wholesale market in the 60s%. Whether the instruments are bought at 31% or 81%: they are issued by credit-worthy/AA or AA-rated banks, possess market-competitive interest rates, and have a retail market value in the 90s%. So, as long as their Trader can buy low and sell high, a profit will be made with NO effective risk. The Client is contracting in some cases directly with the Trading Bank, or other verifiable financial institutions and/or banks. Closings
occur at major banks or law firms -- there is no "coffee table closing" at a restaur-ant. The amount of profit is a function of volume -- dollars involved and the number of times a bankday when a Provider is able to buy and resell into the financial mar-ket. Most Cutting Houses do one tranche/bankday. The largest traders can do sev-eral such tranches -- from different sources to different exit-buyers.

The CLOSING is completed only AFTER a mutual due diligence. The Provider first checks-out the potential Client. Then the Provider's officer contacts the Client. At that time confidential information and reciprocal due diligence information is shared, so the Client's financial institution and/or advisors can develop a level of comfort about the transaction and the caliber of the Provider institution. There is little "blind faith" involved. If the Client/Buyer is not comfortable, he merely says "thank you, but no thank you" and exits the negotiation or closing.