THE “DISBELIEF FACTOR"
From time to time an investor, when first presented with an opportunity to participate in Bank Debenture Trading Programs, may be very skeptical about the existence and authenticity of such Investment Programs. This is quite understandable but it invariably means that the investor is unaware of the process involved and the important safeguards that are in place to protect his/her funds at all times against loss.
Please consider these points:
- Many Bankers say these Investment Programs do not exist, they are fearful that investors would not buy their CD’s anymore, knowing that MTN’s are available exceeding CD yields many times (2.5% to 8.0% approx.), with comparable security.
- Potential investors have not taken time to fully understand the issue, security and trading mechanisms and are suspicious.
- Participants in Bank Debenture Trading Programs have signed very explicit non-disclosure agreements and therefore, cannot act as references.
- These opportunities have been successfully offered in Western Europe for over 65 years (remember the Marshal Plan after WW2) and investors in other countries remain largely unaware of their existence.
WHY ARE THESE “HIGH RETURNS WITH SAFETY” PROGRAMS NOT GENERALLY PUBLICIZED?
- The answer is that these programs have been available, though not widely known for years, however, because of the extremely high minimum requirements to enter them, only a few could qualify. The minimums have been 10 to 100 million dollars previously. Only recently have the smaller minimums been available so that more can qualify and yet have the opportunity to earn exceptionally high and safe profit yields. Also, The Investor must be “invited in” to participate in these very limited enrolment programs.
- Individual programs can quickly become filled and are then closed to further Investor participation.
WHAT IS THE INVESTORS RISK IN THIS PROGRAM?
As stated, the Investment funds principal is fully secured by a BANK ENDORSED GUARANTEE (or, safekeeping receipt) which is issued by the Trading Bank at the time the funds are deposited. The Investor is designated as the Beneficiary of the Guarantee which is issued to secure the principal for the contract period and all elements of risk have been addressed. It must be stressed that, before an instrument is purchased, a contract is already in place for the resale of the Bank Debenture Instrument. Consequently, the Investors’ funds are never put at risk. The trust account will always contain either funds or Bank Instruments of equal or greater value. After each transaction period, the profits are distributed according to the agreement and the process repeats for the duration of the contract.
