PPP - REAL PICTURE - MUST READ IT - ...

PPP - REAL PICTURE - MUST READ IT - Part 2

Posted in the Banking Forum

Roger

New Delhi, India

#1 Jan 13, 2013
As you see, it’s a matter of trust and credibility only. And now, maybe, you will also understand why there’s so much fraud, and so many bogus instruments in this business.

LARGE DEBTS INSTRUMENTS MARKET

As a consequence of the previous statements, 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.

All such activities on the bank side are done as “off-balance sheet activities” and as such, the bank can benefit in many ways. Off-Balance Sheet Activities are contingent assets and liabilities, and as such the value depends upon the outcome upon which the claim is based, similar to that of an option.

Off-Balance Sheet Activities appear on the balance sheet ONLY as memorandum items, and it’s first when they cause a cash flow that they will appear as a credit or debit in the balance sheet. The bank does not have to consider binding capital constraints, as there’s no deposit liability.

NORMAL TRADING – PRIVATE PLACEMENT

All programs in the Private Placement arena involve trade with such discounted debt notes in one way or another. And to bypass the legal restrictions, this can only be done on a private level. This is the reason why this type of trading is so different from the “normal” trading, which is highly regulated. In other words, this business can be done and restricted on a private level only (the private Placement level) that falls down in a special regulation without the usual strict restrictions present on the securities market.

The normal trading known by the public is the “open market”(as the “spot market”), where discounted instruments are bought and sold with bids and offers like an auction. To participate here the traders must be in full control of the funds; otherwise, they cannot buy the instrument and sell them on. And there are no arbitrage buy-sell transactions on this market, because all participants can see the instruments and their price.

However, besides this “open market”, there’s a “closed, private market” where a restricted number of “master commitment holders” is the inner circle. These master commitment holders are Trust with huge amounts of money that enter contractual agreements with banks to buy a certain number of new issue (fresh-cut) instruments at a specific price during a specific period of time. Their job is to sell these instruments on, so they contract sub-commitment holders, who contract exit-buyers.

These “programs” are all based on arbitrage buy-sell transactions with pre-defined prices, and as such, the traders never need to be in control of the investor’s funds. However, no program can start, unless there’s enough money behind each buy-sell transaction. And it’s here the investors are needed, because the involved banks and commitment holders are not allowed to trade with their own money, unless they have reserved enough funds on the market-- money that belongs to the investors which is never used and never at risk.

The involved banks (the Trading Banks) can lend out money to the “trader”, and it’s typically 1:10, but can during certain conditions be as much as 20:1. So if the trader can “reserve” USD100M, then the bank can lend out USD1B (actually, the bank giving the trader a line of credit based on how much money the trader/commitment holder has, since the bank doesn’t lend out that much money without collateral, and not depending on how much money the investors have.

So, if a trader says that he must be “in control” of the investor’s funds, then it means that he’s not one of the “big boys”, but plays on the open spot market. Lots of different “instruments” are traded. If the trader only needs to reserve the investor’s funds, and doesn’t need to be in control of the funds, then he’s trading in this “private market”.
A Justday

Niagara Falls, NY

#2 Jan 13, 2013
Being the poorest third world nation in this planet, you tried to con us in America!!! Not in this LIFE!!!

All collaterals and line of credit, I doubt that you even know What USD dollar looks like!!!

Good luck, An Indian Roger!!!

Signed, A Justday

Since: Jul 11

Location hidden

#3 Jan 13, 2013
A Justday wrote:
Being the poorest third world nation in this planet, you tried to con us in America!!! Not in this LIFE!!!
All collaterals and line of credit, I doubt that you even know What USD dollar looks like!!!
Good luck, An Indian Roger!!!
Signed, A Justday
India (They) have nuclar weapons! They can wipe China off the surface of this earth (and vice versa). Don't piss them off!!

Since: Jul 11

Location hidden

#4 Jan 13, 2013
*nuclear
A Justday

Niagara Falls, NY

#5 Jan 13, 2013
Try Nuclear Food...That is good for you, Indian Roger!!!
Roger

New Delhi, India

#6 Jan 13, 2013
A Justday wrote:
Try Nuclear Food...That is good for you, Indian Roger!!!
Idiot, I am not from India, I am from America, on a biz trip right now. Don't insult other nationalities, but how would you learn that, u never been to school. It's not your fault jerk. Get a life!!!!
A Justday

Niagara Falls, NY

#7 Jan 13, 2013
To lie and cheat, you are a faithful Cohort of that DRIT!!!
Roger

New Delhi, India

#8 Jan 13, 2013
A Justday wrote:
To lie and cheat, you are a faithful Cohort of that DRIT!!!
You are nothing but a looser. These days brick layers called themselves builders. Try to get into college, if you can, get some education. It will polish your filthy mind.

Since: Jun 09

Calgary, Canada

#10 Feb 25, 2013
Roger Contact me if you are in this field , and can supply or Buy
also there are some other Creative Funding can be done on PPP
also I know seller rep for Mtn
email , [email protected]
Raj

Since: Dec 11

Location hidden

#11 Feb 26, 2013
You may wish to "google" SHADOW BANKING.

Since: Jul 11

Location hidden

#12 Feb 27, 2013
And what about "Black Market?"
A Justday

Buffalo, NY

#13 Feb 27, 2013
All the talk of Nonsense to each other...You have nothing else better to do???

Why hide your location???

Signed, A Justday

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