Bankové programy
PPP Explanation & Procedures
Dear Sir,
Here is the explanation for the MTN trading program
First and foremost You had requested that I send you this mail with a detailed description of the business, i.e. the Buying and Selling of MTNs (Medium Term Notes), better known in the banking industry as "Senior Unsubordinated Bank Debentures"! I gladly herewith correspond to your request:
The business really started already in the 80s and 90s of last century. The first places of activity were New York, London and Zurich. At that time issuing banks included institutions from the US, Japan, Italy, Spain etc. Since the quality (rating) of these banks deteriorated considerably over the years Debentures that they issued had no longer the quality that is needed to conduct successfully this business (trading).
Thus, since about ten to fifteen years issuing banks are only located in Germany, Switzerland, the Nether-lands and England; on rare occasions, when the market is very hungry, one or two banks from France.
Since the trading among the participating banks is done electronically and in a matter of seconds there is no time to evaluate the quality of the issue!
It all begins with a so-called "Commitment Holder" who acquires a certain commitment from an issuing bank, say for € 50 billion from Deutsche Bank, Germany. He pays a certain fee for this commitment and makes it available to the Trading Groups at a fairly deep discount. As a matter of fact, due to the extremely low interest level we have for some time now, the discount is not that deep anymore, i.e. at about 80% to 85%. Bear in mind that the standard interest rates on those issued used to be between 5% and 7.5%!!
Now the interest level is somewhere between 3.5% and 5%. This is, what we call the "new issue level". The Trading Groups absorb these issues in tranches (traditionally of 100, 250 and 500 million) and prepare the selling into the so-called "secondary market". This market consists of the larger Investment Banks in New York and London, the big pension funds of the world and large international insurance companies. The issues are passed on into the secondary market in the low to mid-90%. Thus, the profit margins in the buying and selling of these bank debentures range from anywhere between 7% to 12%!!!
If you consider that the traders in the participating banks execute two (2) transactions in the morning and two (2) in the afternoon you can easily imagine how high the returns will become during a normal contract period of one (1) year or 40 weeks. One factor is also good to know: The Trader will only acquire a certain tranche from the commitment if he has already secured a so-called "End-Buyer" in the market to sell it to!!
Who qualifies to participate in this business? Basically a "seasoned investor" who will provide his credentials in form of an acceptable and verifiable Proof of Funds (as we discussed), relevant "KYC" (know your client) documents and a copy of his passport. These documents are going to the compliance of our Trading Group and you have a result in 24 to 48 hours from them! If the client has been accepted he is invited to Switzerland
to sign his Investment Contract; this takes place in 80% of the cases in Zurich - on rare occasions in Geneva.
The reason behind is that our Trading Group is only using as executing, conduit banks: UBS, Credit Suisse and HSBC exclusively in Switzerland!!
Most important: The funds of the Investor are at no time whatsoever at any risk since they are merely "confirmed out" rather than moved to any other bank - they stay where they are for the entire duration of the Investment Contract!! Technically speaking, the Trading Group takes a loan on its own out of the market against the set of documents that the Investor has provided - without any access to the funds that build the basis for the contract!
Profits: There is an unwritten law in the business that the Investor has to receive always a minimum of 50% of the gross generated profit from the trading. These 50% to the Investor (if we talk about an investment of a minimum of €/USD 100 million) will amount to at least 100% per month!! On higher investment amounts the profit can go even considerably higher! On the minimum of 50% to the Investor: Other participants in the profits thus generated are: the IMF, the World Bank (for certain projects), the executing banks, the traders themselves and last but not least our Trading Group who traditionally signs a Master Fee Protection Agreement of 15% with the client - always, and there is no deviation from it and Richanto Group who traditionally signs a Master Fee Protection Agreement of 15% with the client - always, and there is no deviation from it!
It would be more than a pleasure to the undersigned as well as my colleagues in our Trading Group to welcome you as one of our client investors!!
If you have any further questions in the connection of this memorandum and/or in reference to the business as such, please do not hesitate to contact the undersigned at any time you feel like it!!
PLEASE FIND THE FOLLOWING PROCEDURE
STEP A
1- the attach KYC Documents
2- the attach CIS & color passport copy
3- Any type of POF from top 25 rated bank
A- any one of POF letter as attach sample OR
B- Time Fixed Deposit (TFD) OR
C- SKR as text attach OR
D- bank statement OR
E- tear shear OR
F- Banks bonds OR
J- BG OR
H- Share certificates
STEP B
after receiving the above document the Trader group will make there DD within 72 hour
STEP C
Trader Group will send official Invitation letter to the client to come to Switzerland to sign the Investment agreement
STEP D
Trading Group will start working after 10 days
STEP E
First tranche of profit will be send out each month to the nominated bank account by the client
P.S THE NET PROFIT WILL BE MINIMUM OF 100% IF THE FUND IS 100 MILLION EURO AND ABOVE
A- FROM THIS 100%THE TRADING GROUP WILL HAVE 15% (Nabil group) + 15% (Richanto group)
B- MANDATE MTN TRADING PROGRAM OFFICE WILL HAVE 5%
C- 5% is open for the client intermediary