Why Private Placement Programs never fail?

Why Private Placement Programs never fail?

Trading Programmes in the Private Placement Programs arena, all trade bank instruments.

Private Placement Programs involve trading with discounted debt notes, in some fashion. Furthermore, in order to bypass the legal restrictions, this trading can only be executed on a private level and with new funders or clients. Meaning it’s not allowed between banks or via clients with encumbered funds. These are the main differences between PPP trading and ‘normal’ trading, the latter of which is highly regulated almost everywhere across the globe.

Private Placement Programs (PPP) never fail because they don’t begin before all participants have been contracted, and each participant knows exactly what role to play and how they will profit from the transactions. A trader who is able to secure this leverage is able to control a line of credit typically 10 to 20 times that of the principal. Even though the trader is in control of that money, the money still cannot be spent. The trader need only show that the money is under his control, and is not being used elsewhere at the time of the transaction.

For Example: Assume you are offered the chance to buy a car for $30,000 and that you also find another buyer that is willing to buy it from you for $35,000. If the transactions are completed at the same time, then you will not be required to “spend” the $30,000 and then wait to receive the $35,000. Performing the transactions at the same time nets you an immediate profit of $5,000. However, you must still have that $30,000 and prove it is under your control.

Confusion is common with Private Placement Programs because most seem to believe that the money must be spent in order to complete the transaction. Even though this is the traditional way of trading – buy low and sell high – and also the common way to trade on the open market for securities and bank instruments. This is why a client’s funds in Private Placement Programs are always safe without any trading risk.

Private Placement Programs – Compared to the yield from traditional investments

These PPP’s usually get a very high yield. A yield of 50%-100% per month is possible. Yet 70% of the returns are then provided to Humanitarian and Social Projects globally.

For example: Assume a leverage effect of 10:1, meaning the trader is able to back each buy-sell transaction with ten times the amount of money that the client has in his bank account. In other words, the client has $10M, and the trader is able to work with $100M. Assume also the trader is able to complete three buy-sell transactions per month for 40 banking weeks (one year), with a 5% profit from each buy-sell transaction:

(5% profit/transaction) (3 transactions/month) = 15% profit/month

Assume 10x leverage effect = 150% profit…Per month!

Even with a split of profit between the client and the Private Placement Programs trading group, this still results in a double-digit monthly yield. This example can still be seen as conservative, since first tier trading groups can achieve a much higher single spread for each transaction, as well as a markedly higher number of monthly trades.

For more information on PPP’s reach out directly, I have been involved for nearly 24 years and can be contacted for serious investors (no time-wasters please). Simply click on either the Teams or LinkedIn icons below to tell me about yourself and or your client.

About The Author

About the author

Stephen Robinson administrator