Elite Capital Assets-"Private Banking"

Elite Capital Assets - Trading

The information contained in this document is for informational purposes only and is
not intended as a solicitation nor an offer to sell any form of securities.

TRADING DISCOUNT NOTES

The trading in "debt instruments" is a multi trillion dollar industry worldwide. Top world banks (Money Center Banks) are authorized to issue blocks of debt instruments like Bank Purchase Orders (BPOs), Promissory Bank Notes or Mid-Term Notes (MTNs), Zero Coupon Bonds (Zeros), Documentary Letters of Credit (DLCs), Stand By Letters of Credit (SLCs), or Bank Debenture Instruments (BDls) under International Chamber of Commerce guidelines (ICC - 500 & 600 revised 2007).

The World Bank offers a wide range of debt instruments available in the capital markets. For more than 60 years, the World Bank has continuously been working to develop new types of debt products in order to meet the specific needs of both its institutional and retail investors throughout the world.

World Bank debt instruments can be classified into four main categories: (i) benchmark and global bonds in major world currencies that provide high liquidity and spread performance and are generally placed with institutional investors; (ii) plain vanilla and emerging currency bonds that offer a potential yield pick-up for retail and institutional investors without credit risk; (iii) structured notes that are often custom-made to fit the particular asset and liability management requirements of institutional investors, and (iv) USD discount notes with maturities from one day to 360 days.

The primary objective of issuing World Bank debt instruments is to meet investors' needs by providing a maximum degree of flexibility in its debt offerings.The World Bank issues bonds in a variety of ways: on very short notice and at any local business time; in most of the active borrowing currencies; in most maturities and issue sizes; in Eurobond, global bond or domestic bond formats; as registered or bearer bonds, in either definitive or global note forms; using a variety of settlement and clearing systems; and with a multitude of structured note elements and options such as calls and puts, floating and fixed-rate coupons, and equity and foreign exchange-linked coupons and redemptions. The World Bank works daily with a broad range of financial houses so as to utilize underwriters' strengths and deliver the best possible value to investors.

As these debt instruments are bought and sold within the banking community, the trading cycles generally move from the higher level banks to lower level (smaller) banks. Often they move through as many as seven or eight trading cycles, until they eventually are sold to an already contracted retail customer or "exit buyer" such as a pension fund, trust fund, hedge fund, foundation, insurance company, security dealer, etc. that is seeking a conservative, reasonable yield investment that is suitable for eight (8) figure amounts.

By the time the debentures ultimately reach the "retail" or secondary market level, they are of course selling at substantially higher prices than when originally issued. For example, while the original issuing bank might sell a 'MTN" at 80% of it's face value, by the time it finally reaches the "retail/exit" buyer it can sell for 91% to 93% of it's face value. Since these transactions are intended for large financial institutions, they are denominated in face amounts commonly ranging from US $10 million.

The key to safety and profits:

The key to successful trading in Bank Instruments lies in having the contacts, initial cash resources, and ability to purchase them at the maximum discount while also having the necessary resources and contacts to sell the Instruments in the higher priced secondary markets. The real secret of successful participation lies not in knowing the how, why and wherefore of these transactions, but far more importantly, in knowing and developing a strong working relationship with the "Insiders": the Principals, Providers, Bankers, Lawyers, Brokers, and other specialized professionals who can combine their skills and connections to turn these resources into lawful, secure, and responsible programs with the maximum potential for safe gain. There has been a lot of interest expressed by persons seeking to learn more about risk free capital accumulation by participating in Forfaiting (Trading) Programs Essentially, we are discussing a Money Center Bank Instrument or Bank Debenture Purchase and Resale Program in which these monetary securities are bought at a beneficially lower price and then sold in the money markets at a higher price.

Before a trader commits to any transaction, they must always ensure that they have a 'Guaranteed Exit Sale', (another party willing to purchase the bank debentures at an agreed to higher price, at the conclusion of a number of trading cycles). If no end customer is available before the transaction commences, then no trade will take place, as the trader must always protect his positions; This is, of course, vital for the maintaining of the profitability of the program.

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