Private Placement Programs

            Private Placement Programs are, in my opinion, one of the best investments possible.  Private Placement Programs (PPP), are very vast in what they can entail, but I’m going to specifically speak about the Private Placement Programs that are Trading Platforms. 

            Private Placement Programs that are Trading Platforms deal with the buying and selling of Euro Medium Term Notes (MTN).  In some cases, other fresh cut notes.  It is not hard to understand what it is that they do to achieve the type of returns in which they get.  From the clients point of view, they are just contracting with the Platform to allow the facilitation of the buying and selling of the MTN’s.  These buy/sell transactions have to be lined up before the trader can access his line of credit.  There are two things that must happen first before the trader can access his line of credit.

1.)    It must be backed by Cash or an instrument in some cases (This is where the client comes in)

2.)    The trader has to have the buy and sell contracts “in hand”.  This is also referred to as “Arbitrage”.

So without the trader having the trade done, he cannot access his line of credit which is cash backed by the client.  This is important from the clients’ point of view, because it eliminates the traditional risk that is associated with other types of investments.

Euro Medium Term Notes, what the heck are they?

Euro Medium Term Notes are just like they sound.  They are Medium Term Notes from Europe.  Euro Medium Term Notes are no different than US Medium Term Notes, other than they are from Europe.  Medium Term Notes are Notes from 1-10 years.  European Medium Term Notes are notes from Europe that vary in maturity dates from 1-10 years.

Typically Medium Term Notes are used to secure debt by corporations and issued by banks or private investors to the companies looking to get immediate cash for expansion in exchange for taking on medium term debt.  European Medium Term notes are no different and the same rules apply to these types of Medium Term Notes.

Where this really gets interesting is that financial institutions can loan out money at a multiple of what they have on deposit (fractional reserve banking), create the note, then sell off the note for a discount of face value but end up with a profit by selling off the Medium Term Note.  They then in turn do it all over again.  Welcome to the wonderful world of banking and Medium Term Notes.  There are different ways for the accredited investor to take advantage of these transactions if they know what they are doing and who to speak with.  When you start to play the wholesale investment side of the arena by having the knowledge of medium term note transactions, you wonder why you didn’t start a lot sooner.

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

Ryan Drachenberg

407-341-1162

tssprivateplacement@gmail.com