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INTRODUCTION TO BANK DEBENTURE 
TRADING PROGRAMS  

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Introduction to Bank Debenture Trading Programs

    What is a bank debenture trading program?
 

    What is the investors risk in this program? 
    How often does the program to transactions?
    Why are these "high returns with safety" programs not generally publicized? 
    Leveraged trading programs 

History and Development of Bank Instruments (Member section)
   
Keynes, Harry White and Bretton Woods (Member section)
    Marchall plan. IMF. World Bank and Bank of International Settlements  

    Bank of International Settlements (Member section)
    World Bank
(Member section)
    The tie that binds: the bank of international settlements and the World Bank  
    Multi-use instrument
(Member section)
    Insufficient gold supply
(Member section)
    Nixon and Kennedy 
(Member section)
Detailed Overview (Member section)
    Capital accumulation by banks of bank debenture trading (forfeiting) programs: (Member section)
    The key to safety and profits
(Member section)
    "Too good to be true"
(Member section)
Commonly asked questions
(Member section)

Introduction to Bank Debenture Trading Programs

What is a bank debenture trading program?   (more info)  
Also referred to as a secured asset management program, this is an investment vehicle commonly used by the very wealthy where the principal investment is fully secured by a Bank Endorsed Guarantee. The principal is managed and invested to give a guaranteed high return to the investor on a periodic basis. There is no risk of losing the investor's principal investment.

This investment opportunity involves the purchase and sale of Bank Debentures within the International Market in controlled trading program The program allows for the investor to place his funds through an established Program Management firm working-directly with a major Trading Bank.

The investment funds are secured by a Bank-Endorsed Guarantee by the Banking institution at the time the funds are deposited. The Investor is designated as the Beneficiary of the Guarantee unless otherwise instructed by the Investor. The guarantee is issued to secure the Investor's principal for the contract period. This guarantee will be Bank Endorsed with the Bank Seal, two authorized senior Officers' signatures, and will guarantee that the funds will be on deposit in the Bank during the contract period and will be returned fully to the Investor at the end of the contract term.

The Investor is also guaranteed by the program Directors, by contract that they will receive what is in effect a percentage of each trade made by the Trade Bank. This can be in the form of a guaranteed profit/yield paid on a periodic basis upon terms as set forth in the contract

The Instrument to be transacted under the Buy/Sell Program are fully negotiable Bank Instrument. delivered unencumbered, free and clear of any and all liens, claims or restrictions. The Instrument are debt obligation of the Top One Hundred (100) World Banks in the form of Medium Term Bank Debentures of 10 years in length. usually offering 7 1/2% interest; or, "Standby Letters of Credit" of one year in length with no interest but at a discount from face value. These Bank Instrument conform in all respects with the Uniform Customs and practice for Documentary Credits as set forth by the International Chamber of Commerce, Paris, France (ICC) .

What is the investors risk in this program?     (more info)  
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 Instrument 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.

How often does the program to transactions? 
Operations will take place approximately forty (40) International Banking Weeks per year. with specific transactions taking place approximately one or more times per week depending on circumstances" Although there are 52 weeks in a year, there are only 40 international banking weeks during which transactions take place. An International Banking week is a full week which does not include an officially recognized holiday. However, this does not preclude that transactions may occur on short weeks that have a holiday.

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 enrollment programs.

Individual programs can quickly become filled and are then closed to further Investor participation.

Leveraged trading programs       (more info)   
By leasing assets, usually in the form of United Sates government Treasury Bills, for a fraction of their face value, the ability to purchase and subsequently resell bank instrument in large quantities is possible....................

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Recommended further reading:
Bonds 
Bankers Acceptance
Commercial Paper 
Discounting of bank guarantees (BG's)  (Redeeming for cash or raising a credit line) 
Guarantees  
Introduction to Institutional Trading 
Zero Coupons and STRIPS


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