Private Placement Trading and Real Private Placement Platforms

Private Placement Trading and Real Private Placement Platforms

I wanted to write a little bit today about Private Placement Trading, which is Private Placement Programs and more specifically Private Placement Platforms. There are a lot of people that run different operations in the Private Placement realm that call themselves Private Placement Programs that are not Private Placement Platforms (PPP). This is done for a variety of reasons, but we need to distinguish what is a real Private Placement Platform, which runs Private Placement Programs that involve Private Placement Trades and more specifically the arbitrage buying and selling of Medium Term Notes (MTN’s) or Euro Medium Term Notes.

Real Private Placement Platforms only trade MTN’s and they do this by arbitrage. What arbitrage means is that the buy and sell contracts have to be “in hand” before the trade of the discounted MTN’s take place. This is the safest way to trade because the deal is done before the deal takes place. This is all done by the trader for the Private Placement Platform.

The way that the client/investor comes into play is that the trader for the Private Placement Platform (PPP) has to be backed by cash in order to access his credit line to do the trade. The other qualification is that the trader has to trade by arbitrage, meaning having the buy/sell contracts in hand.  This is a real managed buy/sell Private Placement Platform.

Beware of any supposed Private Placement Platform, or Private Placement Program, that claims to be in another area of the market. These can be Private Placement investments, meaning that they are not offered to the general public, but they are not true Private Placement Platforms. And in my opinion, they are not Private Placement Programs.   I know that you my think that this is trivial, but it is not when it comes to risk. Any type of investment that falls outside of doing arbitrage trades adds significant risk to the deal.  This is the difference between wholesale investing and retail investing. Retail is much more risky and a lot of the times pays less in returns.  The retail investments are open to the public and advertised to the masses. The wholesale investments are private and cannot be advertised or solicited to the public. They must be run in the private realm.

I hope that this helps clear up some of the confusion that is out there regarding the Private Placement Platforms and ones that just call themselves that because they are private.  If you have any additional questions, please feel free to contact me. My information is below and I wish you a great and successful day!

Best Regards,

Ryan Drachenberg

If you have any comments or questions, please feel free to contact me at

tssprivateplacement@gmail.com or at 407-341-1162

Ryan Drachenberg

TssPrivatePlacement@gmail.com

407-341-1162

Private Placement Trading

Private Placement Trading

Private Placement Trading is one of the most lucrative areas of the investment realm. Private Placement, in general, refers to private transactions amount two parties and usually a middle facilitator or intermediary. Private Placement Trading is a more defined area. Private Placement Trading is typically dealing with Medium Term Notes (MTN) or something of the sort (paper).Private Placement Trading is based on the Fractional Reserve Banking system, which all banks are based on. Private Placement Trading is not hard to understand once you grasp how the fractional reserve banking works and how it is directly tied to Private Placement Trading. It is what all banking is based on. The only difference is the scale at what takes place with Private Placement Trading.

Here is an over simplified explanation of how these Private Placement Programs operate and how Private Placement Trading takes place in the safety that they offer.

Before speaking of Private Placement Programs and Private Placement Trading (as follows called PPP) we need to realize some basic reasons for the existence of this business. It means that there is a need to learn some basic concepts about what money really is, and about how money is created, and how the demand for money and credit can be controlled, and that someone can issue a debt note which can be discounted and sold, and resold in an arbitrage transaction (the basic system for running most of these programs), etc.

The first reason why this business exists is to create money. More money is created by creating debt. You as an individual can lend out $100 to a friend, and you can make an agreement that the interest for that loan is 10% so that he must pay you back $110. What you have done is to actually create $10, even though you don’t see that money. Don’t consider the legal aspects of such an agreement, just the facts. Now, the banks are doing this every day, but with much more money. Banks have the power to create money out of nothing. Since PPO (“Private Placements Opportunities”) involves trading with discounted bank issued debt instruments, money is created due to the fact that such instruments are deferred payment obligations (debts). Money is created out from debt.

Theoretically, any person/ company/ organization can issue debt notes (don’t look at the legal aspects of it). Debt notes are deferred payment liabilities. Example: A lawful person (individual/company/organization) is in need of $100 so he writes a debt note for $120 that matures after 1 year, which he then sells for $100 (this is called “discounting”). Theoretically the issuer is able to issue as many such debt notes at whatever face value he wants – as long as there are those that believe that he’s financially strong enough to honor them upon maturity, and thereby is interested to buy such debt notes.

Debts notes like Medium Terms Notes (MTN), Bank Guarantees (BG), Stand-By Letters of Credit (SBLC), etc. are issued at discounted price by some of the major world banks in a very large amount of billions USD every day.

There is an enormous daily market of discounted bank instruments like MTN, BG, SBLC, Bonds, PN, etc. involving issuing banks and long chains of exit-buyers (Pension Funds, large financial institutions, etc.) in an exclusive Private Placement arena.

The real core of the trading and its safety is due to the fact that they arrange the buy-sell transactions as arbitrage, which means that the instruments will be bought and sold at the same time with pre-defined prices, and that a chain of buyers and sellers are contracted, including the exit-buyers who often are institutions, other banks, insurance companies, big companies, or other wealthy individuals

Let’s say that you’re offered the chance to buy a car for $30K and that you also find another buyer that is willing to buy it from you for $35K. If the buy-sell transactions are done at the same time, then you don’t have to spend $30K and then wait to earn the $35K since it can be done at the same time you cash in $5K in profit. However, you must still have that $30K and prove that you’re in control of it.

Arbitrage transactions with discounted bank instruments are done in a similar way. The involved traders never spend the money, but they must be in control of it, and the investor’s principal is reserved directly for this.

For an investor it is much simpler (and usually more profitable) to enter a program where the Trader with his Trading Group has already everything in place (the issuing banks, the exit buyers, the contracts ready for the arbitrage transaction etc.) and the investor needs only to agree with the contract proposed by the Trader and trust associated to the program.

After understanding how private placement trading works and how it is tied in with fractional reserve banking, then next obstacle is to figure out how to get into a Private Placement Trading Platform. This can be the most difficult part of the whole process. A lot of people say that they have access, but in all reality they do not. Private Placement Trading is just that, Private! So it takes time for people to be able to break into the field. You have to be dealing with the right people that have real access. At least one person in the group should have personal experience in closing these deals, or you will be spinning your wheels for a long time. Preferably you will deal with someone that has personally invested in them. It is not rocket science, but it must be understood up front that the client in a Private Placement trade is applying to be part of the platform. That means submitting the required documents in order to be considered.

Make it a great rest of the day and week!

If you have any comments or questions, please feel free to contact me attssprivateplacement@gmail.com or at 407-341-1162

Ryan Drachenberg

TssPrivatePlacement@gmail.com

407-341-1162