mechanics of managed buy sell

7/26/2019 Mechanics of Managed Buy Sell

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Managed Buy/SellTrading Programs

The Mechanics Of

The Process



Please Maintain The

Confidentiality Of This

Information!• The information contained in this

document is confidential and proprietary.It must not be distributed to anyone

other than a qualified prospectiveClient’s legal advisor or a trustworthyadvisor.

• The nature of what you will read isdangerous in the wrong hands, and can

create International banking andeconomic havoc should non-qualifiedpeople see this information and re-distribute to the general public.

• Thank You for honoring this request for

confidentiality and completediscreetness. These Programs are “by-invitation only” and are solely for theelite, Ultra High Net Worth individual.

2CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATION ISNOT TO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THSI IS NOT AN OFFER TO SELL OR

SOLICIT: IT IS EDUCATIONAL IN NATURE AND INTENDED FOR A CLOSED AUDIENCE.



Executive Summary

• Background of the Managed Buy/Sell Programs

– Mostly Western European, Asian, Canada usethis to generate cash.

– US Traders and Banks do not or wish not tounderstand the process, so they discredit them.

– These very specialized, discreetly operated TradePrograms were created to raise cash forInfrastructure Projects

– Started in 1947 at Bretton Woods Post-World WarII.

– The system starts with a Trader and a Client (theMoney) partnering under a contract. This allows

the Trader to “show” the Client’s money so helegally can buy newly issued bank paper.

NOTE: ILLUSTRATIONS OF PRICES AND SPREADS ARE FOR THE

PURPOSE OF UNDERSTANDING THE CONCEPT. EACH TRADE IS

DIFFERENT, AS IS EACH TRADE PROGRAM.

3CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATION IS NOTTO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THIS IS NOT AN OFFER TO SELL OR SOLICIT: IT IS

EDUCATIONAL IN NATURE AND INTENDED FOR A CLOSED AUDIENCE.

http://en.wikipedia.org/wiki/Bretton_Woods_system

http://en.wikipedia.org/wiki/Bretton_Woods_system



Why This System Works

The driver of this system at the end of the buy/sellcycle is the last buyer:

– The final purchaser of these bank papers are

generally Pension Funds, which need a return of atleast 7.5% annually to remain solvent.

– They have an insatiable appetite.

– They can only put marketable instruments in theirportfolios. Marketability is demonstrated by thehistory shown of increasing market value as theinstrument moves from New Issue into“Seasoned” status.

– By having these instruments bought and sold atprogressively higher prices, it demonstrates there

is a market for the instrument.

– When the Pension Funds buy marketable paperfor 90% of the Face Value, then cash it in one yearlater for 100%, they have made a 10% profit.

4CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATIONIS NOT TO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THSI IS NOT AN OFFER TO SELL OR




What is The Risk Of Losing

The Money?• Very simply, the client’s money is

never touched, because the only

way the Trader will buy new paper isif he has a second buyer ready to

take it from him immediately at 20-30% higher price.

• To Illustrate the First Round, suppose theTrader buys new-issue paper at 40% of theFace Value (FV).

• He immediately resells it to the secondary

buyer for 70% FV, making a 30 pointspread using the money from thesecondary buyer. Once the trade settles,the profits are shared with the client.





Why Don’t The Pension

Funds Buy Directly?• They are regulated about the kind of

investments they can make. Theycannot buy an instrument without

demonstrated marketability, theyare restricted from buying“Wholesale”.

• Because they cannot legally “show”and block the Pension Plan’s funds.

• Without showing and blocking,they cannot take advantage of thespreads between new-issue and

seasoned as it moves from new-issue to seasoned with a historybuyer.

6CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATION IS NOTTO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THSI IS NOT AN OFFER TO SELL OR SOLICIT: IT IS




Isn’t This Illegal Arbitrage?

No. Because the Tradercould show he had cashto pay for the paperbefore he bought it, hedid not act illegally.

– By “Showing” theclient/partner ‘smoney in the accountprior to the trade, hehas avoided this

possibility.• This is why a client’s

money is needed toshow, though neveractually used toconsummate thetrade.

– Since he sold thepaper immediately andmade a 30% profit, heshares that with theclient.





Who Is The Trader?

• A highly regulated licensedindividual who continuously buys,

then sells at a profit, bank paper.

– Every trader is under variousgovernmental regulatory rules that

must be followed. These are veryspecific about what he can orcannot do.

–

He is monitored continuously for hisactivities to make sure he is incompliance at all times.





If The Bank Sells Paper at

40%, How Does It Pay Face

Value When It Matures?

TRADER PAYS 40% FV

• The trader is buying

newly issued paperstraight from the

commitment

holder, who is the

one person

authorized to allow

paper to be

purchased from the

banks.

BANK RECEIVES 40%

• The bank uses that

40% cash to trade aswell.

• A one year maturitygives the bankenough time to earnprofits on their owntrading – somewherein the neighborhoodof 2,000%!

• When it comes timeto pay the face value,

they have made morethan enough profit topay the beneficiary ofthe instrument .

PROFITS ARE FOR ILLISTRATION

ONLY. ACTUAL PRICING IS

DIFFERENT DEPENDENT ON A

NUMBER OF FACTORS. EACH

PROGRAM IS UNIQUE.





10

CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS

INFORMATION IS NOT TO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THSI IS NOT AN

OFFER TO SELL OR SOLICIT: IT IS EDUCATIONAL IN NATURE AND INTENDED FOR A CLOSED

AUDIENCE.



What Is Needed To Start

• International Rules of non-solicitationdictate that the prospective client mustalways make the first move.

– A Client Information Sheet (CIS)

– A copy of the client’s Passport

– A recent Bank Tear Sheet, signed by twobank officers, showing the balance in the

account.

The ONLY person who may be involved asthe Client is the person who has the bankaccount. No Mandates, Powers of Attorney,Assigned Principal Signatories. The rules

require that the person who owns themoney and can sign the bank account be theClient.





Acceptable Assets

• CASH in the bank, with the

account owner’s signatory.

• GOLD Bullion in an acceptablebank, with the 5-page SKR and

the account signatory.

•

Bank Instruments: BankGuarantees, Medium Term Notes,

Standby Letters of Credit.

• NO Mexican, Peruvian,

Venezuelan Bonds, Brazilian LTN.





Non-Cash Monetization

• The beneficial owner of anacceptable instrument receives a

line-of-credit from the Bankwhere the instrument is lodged orissued. (Depends on theinstrument, etc.)

• Bank institutes the tradeagreement between the Clientand the Bank. They share in theprofits.

• Loan To Value can be as high as80-85%, but is only determinedby the Lender.





What About The Fraud?

– Sadly, people will do anything in

desperation to make money. They will

Lie, Cheat, and Steal. As a result, The

Government, in its efforts to save us

from ourselves, generalizes that these

are all fraud, scams, and non-existent.

99% of that is true.

– The other 1% operates at the highest

levels in international banking, and

they never talk about these programs.

– The crooks play on the need for

discretion and non-disclosure, using

the necessity for secrecy to mask their

real intentions.





What Is Real, Then?

• In the Real program:

– the client’s money never leaves hisbank account, so there isn’t a way tobilk him out of his money. He retainstotal ownership at all times.

– NOT Real: “Prime Bank Instruments”.

• That term is never used in the real lexicon

of these programs. What the heck is aPrime Bank? That in and of itself is causefor suspicion. This is an example of makingup a name that sounds plausible, but isn’twhat it presents itself to be.

• Another great example of this is our ownFederal Reserve! Read “The Creature FromJekyll Island” for the true story of theFED… it will blow you away.





What is Real, and NOT

– NOT REAL: Some crooks have charged up-

front ‘participation fees’, ‘application fees’,

and other money paid before anything

could start—if ever.

– REAL: There is no reason for anyone to

charge fees. The real program is

straightforward.

– NOT REAL: The “platform” tells you to

move your money.

–

REAL: The money stays in your account, inyour name.





Summary

• To Get Something You Never Had,

You Have To Do Something You

Never Did. – You have the option not to sign the

contract once you have passed

compliance and been contacted by

the trade group.

– At its worst, the Trade Program

might not generate profits (highly

unlikely, since the trader doesn’t

make money either if he fails).

– Your money stays right where it is.

17CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATIONIS NOT TO BE CONSTRUED AS AN OFFER TO SELL OR SOLICIT. THSI IS NOT AN OFFER TO SELL OR




Thank You

• Please remember that this

information is strictly for the use

of a qualified Client, and is not fordissemination, publication, or re-

distribution to anyone.

• Thank you for your cooperation.

CONFIDENTIAL INFORMATION: NOT FOR PUBLICATION OR DISTRIBUTION. THIS INFORMATION IS NOT

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