What is a Private Placement Program & How does a Private Placement Program work?

July 31, 2009

Private placement trading programs usually involves trading with medium term bank notes (MTNs) or Treasury Bills called T-Bills.

PPP refers specifically to private placement trading programs with a high return on the investment associated with humanitarian project funding programs or Fed programs as compared to capital enhancement programs.

These programs provide the traders with fresh issues of MTNs or T-Bills that produce high profit margins. This is known as the first tier. In the commercial world this would be called the B2B wholesale market. Now we all know that end users usually do not have access to the prices offered in the wholesale market, so they buy goods in the convenience store and not direct from the producer.

Most of the time these programs require the investors to use a portion of their earnings for projects of humanitarian, social, or economic development in nature to make sure that part of these Profits are put back into the economy.

Even after deducting the portion of earnings to be used for projects, the investor is still left with a very substantial profit for their own investments.

Performing PPP programs are difficult to find and are not always available. Only a very restricted number of high-level traders can get access to these type of programs.

Many capable investors have been looking around for PPPs for years and are unable to find a performing provider. Often they have wasted large sums of money by sending MT760’s to banks and so called traders that simply can not perform.

Genuine programs are without risk to the investor what so ever, as the credit line raised against the capital is underwritten by the trading group. The (Investor) therefore is involved for the purpose of audit only, as it is by law that Financial institutions are not allowed to participate and therefore have to find a Private entity either a private person or company. At no time are the investor’s or better called Audit Fund Provider’s funds used for the trade.

The procedures to enter are simple and fairly standard, however the Audit Fund Provider will have to adhere to strict compliance and non-disclosure. Many claim to be next to traders, this is 99.99% not the case. Traders are very busy people and have no time to sit down and have a chat. Therefore they have a structure in place where the first contact is with a compliance officer who will go through the submission papers and sort out the good from the nonsense.

For information on Private Placement Programs, Private Placement Investment, Private Placement Platform, PPP, MTN trading and MTN buy sell programs  visit www.sovereignsecurities.com

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