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November 9, 2009 All Information Subject To Change Without Notice |
Greetings!
You may be receiving this for the first time, and if so, welcome. Your name was identified to us as having some involvement in the buying and selling of bank instruments, and we thought this information might be of interest to you. If it is not the case and we've missed the boat entirely, or we were in error, please Unsubscribe at the bottom, and accept our apologies.
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Straight from the Trader's Mouth:
It's fascinating how a direct relationship with a Trader reveals the true misinformation and misrepresentation being spread around like gospel. The problem is that it starts with one mis-informed, inexperienced individual, and spreads like wild fire to everyone else in Brokerville.
Take for example, the insistence that a NCNDA be signed before releasing the buyer's information. Asking for this is a red flag that you are new to the business and don't know what you are doing. The NCNDA, while a good intention, is unnecessary when you are dealing with the real players. Beside's, that language is incorporated into the Letter of Intent, anyway.
Here's another sure sign of a rookie: demanding that the Fee Pay Agreement be completed first before an LOI is sent. This is a broker-joker ploy that is like putting the cart before the horse. Until there is a deal, the FPA is the least concern. When the deal is coming down to settlement after negotiation, it is typical for the FPA to be completed and signed off by the Buyer. Remember, the Buyer controls who and how much a person gets paid, since they are paying the commission.
Another sign of a rookie: expecting a full share of a fee for having made a telephone call or sending an email to introduce one party to the other. That's beyond wishful thinking, it's downright shameful. Just because there was an introduction does not mean you get to share equally with those in the deal who did the heavy lifting. You would be paid a referral fee for making the introduction.
Yesterday I was on the phone with a buyer and the trading house about a deal. The buyer said he had just killed a deal that had 17 names of brokers in one of the boxes. 17!!! That's why he killed the deal. And I don't blame him one bit.
The three main concerns of a trader are: Is the person legally allowed to buy paper, is his money clean and clear, and does he own the money or have signatory authority to commit it on behalf of an entity. That is why the Buyer leads the dance by providing this upfront. These documents (the CIS, Passport, LOI, Banking Verification Letter) comprise the key to opening the seller's door.
Without the key, the buyer cannot get in. No matter how hard they try. That's why so many deals fail at the very start, because the buyer isn't understanding why the seller MUST have that information before he can speak to the buyer.
Many buyers are reluctant to put their specific interest and provide a way for the trader's compliance people to make sure the buyer isn't on the Blacklist (commonly known as the United States Treasury "Special Designated Persons" list available www.treasury.gov) and that their money isn't illicit. When you are speaking of huge sums of money passing through, you can and should understand why it has to be this way.
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New Self-Liquidating Loan Program Against Bank Guarantees For Real Estate Projects
PROGRAM DESCRIPTION
This program is an Economic Stimulus Package that is designed to fund existing businesses, commercial and residential developments with strong reliable management/development teams that are able to operate their business profitably. Long-term players that have established credit worthiness and in need of funds to expand their business, develop new products, and establish additional operating capital or any combination of the three. The Funder is interested in long-term projects with companies that have a good established business and offer a sound business plan. The applicant must have the ability to provide a Financial Instrument that equals 33% to 50% of the total funding amount. This program is ideal for developers with multi-phased long-term projects in commercial construction, energy, medical facilities, assisted living facilities and more.
The provider is interested in projects that involve Real Estate of all types, Energy projects, and will consider Asset Based projects for existing businesses that are in need of reorganization, expansion, business purchases or other investments.
This program is based on the value of the "Financial Instrument". If a borrower needs to use an investor to collateralize the financial instruments we will design the program for an outstanding annual return on investment paid monthly and in some cases can design the program to include a Premium Return at the end of the investment period.
In all cases the borrower will be required to establish a Capital Reserve Account administered by the Funder's Administrator for the financial protection of all parties. FOR DETAILS, SEND EMAIL TO Info@BGMTN.COM and request TA102809 Package
PROGRAM HIGHLIGHTS
> Program is a self-liquidation loan over a three year period
> Program can be extended past the three year period for additional funding
> Program minimum Instrument amount is $5 Million USD, there are no maximums
> A lower amount will be looked at on a case-by-case basis (USA Only)
> No due diligence fees or up-front fees required by Funder or allowed by Brokers
> The Borrower/Investor funds used to secure the Financial Instrument are protected at all times
> The Financial Instrument is fully protected during the entire transaction period
> The Financial Instrument shall have a maturity date in the 12th month and an expiration date in the 13th month.
> Borrower must extend/renew the Financial Instrument after each maturity date and prior to the expiration date twice to complete the self-liquidation
> Financial Instrument is assigned to the Funder via SWIFT transfer between the borrowers'/investors' bank and the funders' bank
> The Financial instrument is returned to the borrower prior to the expiration date after the second extension free of liens
> Funding up to 2 1/2 times face value of the Financial Instrument (varies per project)
> Funding up to 3 times available for projects with a Capital Reserve Account
> Typical Close is within 30-45 days (contract execution to first installment)
> Closing can take up to 120 days on smaller Financial Instrument transactions (under $100 million)
> No payments required during the disbursement period (interest does accrue)
> No payments required during the self-liquidation period
> Funding is normally over a 12 month period
> Funding can be disbursed over a 6 month, 24 month or 36 month period (varies per project)
> If Funder fails to make payments for 60 consecutive days borrower may cancel the contract and keep all money received with no repayment required per the Contract Agreement
> No project performance standards or schedule of values necessary to regulate the funding
> Program is underwritten per Funder's guidelines
> Program is administered internally (via an administrator) per Funder's guidelines
> Administrator can set up a Project LLC for disbursement of funds
> Borrower has two loan options, available at the end of the disbursement period
> Option One: Continue the Financial Instrument for a three year period of time to self-liquidate the loan
> Option Two: Early payment of debt prior to the end of the third year with no pre-payment penalty (Financial Instrument still has to be maintained)
> Administrator is responsible for the monthly disbursements according to the escrow instruction at the time the loan is initiated
> Payments to investors (if applicable) will be paid first, then payments to brokers, then Capital Reserve Accounts and then the balance will be disbursed to the borrower |
| PPP for $1 Million to $100 Million. Now Available--USA CLIENTS ONLY
This is for Informational Purposes Only. Not an Offer for Sale.
FOR PRINCIPAL OWNERS OF THE MONEY-- NO INTERMEDIARIES, PLEASE. PCC IS DIRECT TO THE COMPLIANCE ADMINISTRATORS!!
A US Bank (Top) has announced a new fed bullet program for US bank clients ONLY with $1M - $100M cash deposits. Program will return a very nice multiple over two weeks.
EXPIRES THIS WEEK-
Funds will be accessed by way of administrative hold and will NOT be physically moved, blocked or encumbered. Clients will be required to have access to their bank officers upon request.
CRITICAL NOTE: We may only provide the information and documentation to the Principal Owner of the Money!!! If you are NOT the Owner of the Money, please do not respond.
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For The Principal Owner Of BG's and MTN's
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If you own paper and would entertain selling it, we invite you to email your model LOI with the instrument specifications. In the event someone is looking for something fitting the description, please include your desired procedures. The list of people potentially interested in speaking with you about your paper(s) is ever- growing. As an information exchange service, we put the Principal players together and stand aside. We deal only with the Principal or the Authorized Agent/Rep.
If you need to see some sample formats of documents that you would typically use-- again for informational purposes only- we have prepared a set that can be yours for downloading here.
If You Do NOT Yourself Own A Instrument, Please Do Not Reply To This! This is For Owner's Only. |
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How We Work
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Rules Of Engagement |
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FIRST RULE:
NO PHONE CALLS!!!
EMAIL IS THE BEST WAY TO START A CONVERSATION!
SECOND RULE:
NO BROKERS OR INTERMEDIARIES WHO ARE NOT DIRECT! NO CHAINS WHATSOEVER!
If The Person You Are Talking To CANNOT WRITE A CHECK OR SIGN A CONTRACT.... Please Do NOT Waste Time.
Unfortunately, it seems to be a regular occurrence where people claim to have the ability to deliver a product and truly don't... most of the time due to their misrepresentation, some of the time due to circumstances beyond their control.
In order to effectively put a Principal buyer together with a specific opportunity, we ask each buyer to complete the downloadable request form-a "wish list" if you will, for each of the paper they are looking for.
The more specific the description of the instrument the buyer wants, the closer we can come to finding them what they are looking for. Otherwise, it's like walking into a grocery store filled with thousands of items and asking someone to 'show me what you got'. Waste of Time.
As buyers and sellers come together, they can be directed to each other when there is a fit that is close, or exact. If you know where you are going, getting there is a lot easier.
For legal reasons as mentioned above, paper sellers want to see the Buyer prepare either a Letter of Request or an LOI.
Some Buyers ask that the Seller provides some kind of letter or ISIN or CUSIP numbers. What they don't realize by asking that is they ask the Seller to SOLICIT an offer. Until a Seller has cleared the Buyer and his/her money, and provided a non-solicitation statement, the Seller can be looking at fines or jail time.
The Sellers are very cautious about this, even if the particular instrument is not subject to Solicitation rules. They tend to err on the side of caution.
This opens the door for a conversation once the seller has had a chance to look over the buyer's request and do a quick due diligence check. It helps even more if a Non-Solicitation Letter or clause is included to better ensure compliance.
Because the owner of an instrument is prohibited by law from soliciting, or appearing to solicit, someone to buy their paper, all initial interest in it must FIRST start from the buyer.
The seller cannot send out a LOI or other documents without first having been approached by the buyer prospect.
So many buyers want to see the seller's LOI first, they don't realize they are actually asking for the seller to break the law!
This is many times the reason a buyer is unsuccessful.
Without even knowing it, they have demonstrated a lack of understanding of the manner in which a transaction is facilitated, and sent that message to the seller, who naturally will decline any reply or response.
The role that I play is to facilitate the information about a buyer to an owner or seller of the paper desired, which helps overcome the issue of putting the seller at legal risk for being seen as soliciting.
If I am not acting as the principal in the deal, simply providing the opportunity for a meeting of the minds with a buyer/seller is much like posting a "Want to Buy" notice, and having that delivered personally directly to a possible opportunity.
As of last week, I am DIRECT to several platforms managers and owners as well as certain banks. I am connected generally either to the provider's representative, or rarely no more than 1 away.
In the case where other intermediaries might be involved in bringing the end buyer to the table, they must stand back immediately and allow for direct conversations to be facilitated with the buyer principal. However, if there is a chain of more than one broker between the Principal and you, we will most likely not be interested in discussing it.
Group conference calls and broker interference in any way automatically kill the deal. If there is no one on the phone who can sign a contract or write a check, there is no reason to talk.
Compensation is generally broken into two categories: Full Share and Referral Group.
A Full Share of a box may be shared by those who are doing the heavy lifting in a deal, versus those would be considered a Referral Fee recipient-making a phone call or email to introduce the parties is not an entitlement to a full share of a box. |
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Outlook and Opportunities
In no way are these a solicitation to sell. They are provided as information only. We are not responsible for the accuracy of information should it later be discovered to be incorrect. Caveat Emptor.
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Our Focus
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| BG's | MTN's | PPP |
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Fresh Cut. Slightly Seasoned. Seasoned. Or for those who know the real terminology-- New Issue, or Issued.
How to get started? Send an email with your staus as a Principal Buyer, or legal, papered representative status. We can only respond to these two positions in the buying chain for this opportunity.
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Private Placements
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There are several providers of Private Placement Programs that we are working with. Some will even accept hard assets (like the offer above for Gold); and some will accept certain types of in-ground assets with certain criteria.
If you have assets other than cash to put into a program, you must send front and back copies of the instrument and proof of ownership along with a non-solicitation letter. OR, if you can get a SKR (Safe Keeping Receipt) from a major Top 25 European or Canadian Bank, that can be used!
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Sender is not a licensed United States Securities Dealer, Broker, US Investment Advisor or Commodities Trader. This electronic transmission and or attached documents are not to be considered a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities. And is sent so as a request for information.
NOTE: This communication is private, confidential, and between the parties. It is not public disclosure and not a public offering. It contains information which may be proprietary and privileged, and does not constitute a legal agreement, nor is it to be construed as legal advice or consulting. Any review, re-transmission, dissemination or other use thereof, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited.
This material is for information purposes only, and is not a solicitation of funds to buy and/or sell Securities, nor a solicitation to provide financial services. The afore-referenced instruments are not offered for sale herein. We are not the Providers. Bank Instruments are for private sale and do not come within the purview of security laws of any nation.
Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of PCC Funding, PO Box 1222, Olney MD 20830.
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BGMTN.COM:
An Information Service of PCC Funding
News, Views, Opportunities, Opinion.
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Nothing in this communication is to be construed as solicitation or an offer to sell. Due to widespread fraud perpetuated by certain brokers, sellers and buyers, the information contained in this newsletter is provided with the caveat that all Principal parties are warned to beware and verify any items in this newsletter. This newsletter is a compilation of experiences and observations of the writer, and are not intended, nor to be mistaken, for legal or financial advice. Unfortunately, the industry has become fraught with individuals of questionable ethics and behaviors, so each reader must take responsibility for their own due diligence. Should you find a gross inaccuracy in one of the items, it is appreciated if you would let us know so it can be further researched and, if necessary, retracted, corrected, or validated. |
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Q and A of the Week
This week we have received some typical questions from would-be buyers or brokers. Notice the theme.
Q. Please send over what you have available to me? My buyer is ready to go. He wants to close with T+1 Procedures. He also holds a letter from XXXX Bank that states he has the ability with out limits to purchase from his XXX credit line. Please call me so we can set up a call to work on how we can proceed.
A. It doesn't work that way. Your Buyer FIRST tells us, in his LOI, exactly what he wants to buy. Not a general, "I'll take anything you've got"-that's not serious, nor is it credible.
I want to know EXACTLY what he wants in a specific instrument description. Let him start with 1 item. I don't care if he wants to buy everything-I've never had ANYONE walk in who could buy the whole store, and even if they wanted to, the sellers would never let them because it would disrupt the markets.
Secondly, only the Seller's procedure matter. If he wants to pay T+1, he better be a very strong buyer showing his money without hesitation. Otherwise it's plain old BS. I cannot and will not waste my trader's time with it. Buyer MUST MUST MUST!!!! start the process with his LOI, Clients Information Sheet, Passport and bank to bank authorization for POF.
If he won't he is invited to leave our store (and all other real sellers will say the exact thing!).
This sounds suspiciously like a tire-kicker. We won't waste time with them.
There is only one way to do this right, and if the buyer says anything else, he is not a buyer we are interested in dealing with.
Sorry to be so harsh, but the amount of time wasters and tire kickers out there takes away from precious time working with the real people. Don't have time or interest in doing that.
Q. I AM DIRECT TO THE BUYER'S MANDATES FOR BOTH FC BG'S REQUIREMENTS. THESE TWO BUYERS ARE READY TO PURCHASE AT 54+1. SEND ME THE DRAFT OFFER/LOI FOR THE TWO BUYERS TO SIGN. THEY ARE RWA TO PROCEED IMMEDIATELY.
THANKS.
A. What I need to start the process is the Client Information Sheet, Passport, Authorization for Bank to Bank Proof of Funds, and the client's LOI exactly as attached. Also, of course, they need to complete and sign the MFPA, as do you. Once all docs are signed and in place, they will go to the trading house.
Please note: ALL Sellers are becoming extremely cautious about buyer's performing bank to bank POF. It is absolutely essential that full disclosure from your buyers make it possible for a quick compliance check.
The procedure for verifying funds starts with the buyer requesting the seller to allow the buyer bank to send POF to the seller bank coordinates, which will be provided. The seller needs to alert Credit Suisse (the seller's bank) to expect a POF to come to their account. Once that is done, things start to move quickly.
If a Buyer submits a contract offer (LOI) and it turns out they do not own the money or have the money to buy, the authorities are notified. There have been many instances of this, so the sellers are being very careful these days.
Q. Are you able to provide a current list of MTNs with ISIN for sale so buyer can examine on the screen?
We are seeking a list something like below in which if possible screen shots can be sent so buyer can examine details of the instrument.
After buyer looks up the instrument on Bloomberg, buyer's rep would be require to conference with seller's rep before any paperwork is exchange?
I have a buyer willing to issue a buy ticket directly from a HSBC Bank Trader for smaller amounts to verify MTN is real, then purchase entire quantity plus take down several seasoned MTNs.
A. None of my sellers will blindly send out anything about instruments for sale until the buyer presents himself and has cleared through due diligence.
I do not maintain a list of instruments that are for sale-if they are appearing on a list floating around broker-ville, then either it is a fake instrument or it has been sold long before the list started circulating.
If the buyer wants to deal, he needs to put forth his CIS, Passport and LOI detailing exactly what he wants-not just a laundry list of possible interesting instruments. We NEVER EVER EVER provide ISINs or other numbers like CUSIPS without know exactly who we are sending it to. And the only way we know is through the courtesy of the buyer introducing himself via his documentation. THAT's the way through the sellers front door.
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Bank Instruments for Trade Programs and Platforms
Does your private placement program or trade platform require you to provide an instrument to their trade program to maximize your earning potential?
We are direct to a provider who contracts with clients for the issuance of cash backed certificates of deposit, bank guarantees and standby letters of credit to be issued by globally recognized banks.
These instruments are strong due to the fact that they are issued in the name of the client as beneficiary and are fully lienable, callable, transferable and assignable which allow them to be used as primary collateral for a credit facility and/or transaction.
Most instrument transactions fall apart because the bank instruments are leased. The issuing bank and/or lessor require the client's bank to undertake to return the instrument on a certain date. This is the only way a leased instrument can be used, however very few banks will do this.
Since leased assets are not practical, our provider has created a exclusive method of collateral infusion in which the instruments only require a corporate undertaking to return or repay the instrument on a certain date between the beneficiary and our company. You will not find this type of product any other place in the market today.
The minimum instrument they issue is Fifty Million United States Dollars.
Send Email Request to Info@BGMTN.COM to receive pricing and documentation.. Use of Instruments:
The Client/Beneficiary has the ability to participate in any legal financial transaction with the bank debt instrument provided through this provider.
The bank instrument may be used as the only, primary, or as a secondary source of collateral. It is agreed that the bank debt instrument can be monetized directly by the beneficiary or an assignee, designated by the beneficiary. Issuance Pricing: Price Sheet upon email request: Info@BGMTN.COM
Instrument Types:
1. Standby Letters of Credit (SBLC)
2. Bank Guarantees (BG)
3. Certificates of Deposit (CD)
4. Reserved and Blocked Funds - Cash Collateral Accounts (CCA)
REFER TO DB102809 WHEN REQUESTING MORE INFORMATION.
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Placing Cash, a Bank Guarantee, or MTN
Directly Into a PPP WITHOUT MOVING IT!
Each program manager has his or her own specific strategy. We are fortunate enough to be in touch with a number of them. Shoot us an email for more details. info@pccfunding.com
If you have assets other than cash to put into a program, you must send front and back copies of the instrument and proof of ownership along with a non-solicitation letter. OR, if you can get a SKR (Safe Keeping Receipt) from a major Top 25 European or Canadian Bank, that can be used as well. It must be a western European, Canadian or US bank. |
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Thank you for reading this. If this newsletter does not apply to your interests or business, please Unsubscribe at the bottom.
If this DOES have value to you, please share it with other reputable people who are principals in the business.
Sincerely,
Michael Weiner, President/CEO
PreConstruction Catalysts, Inc | |
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