This Off-Market, PRIVATE PLACEMENT, capital Market maintained by the
FED thrives due to the fact that the FED regulated institutional
Investors (Insurance Companies, Pension Funds, etc.) which are the
major source for all Capital Investment, cannot fund capital into
securities which have not yet been issued. That is the management of
the future capital. Private Investors however, are not restricted in
this manner. The FED mechanism requires funds to be escrowed prior to
the issuance of the Bank Paper. In effect, each Issuance of Bank Paper
through the FED requires Bridge Financing. The same requirement exits
on all On-Market Issuances on Wall Street where the Investment Banks,
in Groups, use their Capital to uiderwrite and funds Issues. Each
Individual / Company Investor contributes to the Fed Issuance. The
securities are often then resold and distribute through normal retail
Channels to Institutional Investors and Individuals. In the case of
the FED, Private Market, high net worth Individual serve as the
Underwriters, pooled together by TRADERS or PROGRAM MANAGERS. These
Individual exist inthe FED´s Private Channels of distribution. They
purchase the Bank Paper at the HIGHEST POSSIBLE DISCOUNT offered by
the FED through their TRADER NETWORK and resell it to the
Institutiona. Buyers at the LESSER DISCOUNT. This explains the high returns.
As with the Investment Bankers and their On-Market Issues, this
Private FED Market generates a significant Trading Spread. This
spread, typically 7% to 25% depending on the term of the Bank Paper
being TRADED, is the essence and source of the SUPERIOR PROFITS,
"MIRACULOUSLY HIGH YIELD". Succesfull TRADERS Can
utilize the same pool of funds to purchase and resell blocks of Bank
Paper as often as two or five times per week.
Bank Paper is issued in minimum amounts of USD. 10´000´000.
Investment Funds below USD. 10´000´000 or larger. Because of the
Issuance of Bank Paper at minimun level USD.10´000´000, the Investors
with amount below USD.10´000´000 have often to wait for the delay of
entry, while the Investor from USD.10´000´000 and up can enter easily
into the Program.