Private Placement Programs (PPP) act as a bridge between the public or private sector investors and the financial markets. They provide an opportunity for a dynamic flow of funds thereby increasing the trade avenues.

private placement program (PPP) is a particular type of investment that allows access to the marketplace for trading bank assets, most commonly Medium Term Notes (MTN’s).

Medium Term Notes are essentially debt notes that allow banks and other institutions to lend to customers.

Definition of High-Performance Plans or Private Placement Program

PPP is an investment system which was previously reserved only for the very wealthy, with returns dedicated in whole or in part to humanitarian works. Right now this system can access people not considered to hold great fortunes.

PPP has nothing to do with the traditional business of banking. Practically none of the professionals who are currently working in a financial institution know about this. However, in the press, we have the opportunity to read articles from the Fed and the IMF advising financial institutions to reduce the number of trading operations and engage in their traditional business.

PPP is not focused towards the public, so the person who does not have a high degree of financial knowledge will not know. It is forbidden by law to advertise it. Whoever has been involved in a PPP will never admit to it, especially as he has signed a confidentiality agreement with a Trader.

In a more “real world” example, the process is like an investor buying a car for $1,000 and selling it for $1,500, making a $500 profit. The person trading the car knows they will make a profit, and before they even spend the $1,000 to buy the car, they have an agreement to sell it for $1,500 so they know they will not be left holding the car without a buyer. This is why the risk of this type of investment is so low as long as the trading platform is legitimate. It also explains how the returns can be so high and why it should be considered as completely different to the trading of other assets, such as buying and selling stocks for example.

The safety of the invested capital is determined by the rules governing the secondary market. The investor is the one who orders his bank to make a block of its funds (Swift MT-760). However, this bank must always be a top 25. For the Bank to initiate this “business” with its own funds, it is required by law, the receive the investor’s contribution collateral. This collateral can be CASH, Financial Instruments (e.g. bank guarantees, MTN’s, CD’s), plus assets such as bank deposits of gold or diamonds.

All contracts between the Investor and the Bank, are set under the rules of the FED, the FMI and the ICC. 

Cassiopea Group – Key Steps

This type of investment program is only accessible
by “invitation” by the Trading Platform.

PPP: Ref. Process Flow

The client provides a proof of funds and passport copy along with their compliance package
Most of the assets that people try to apply with do not meet the criteria for secured asset management program. We represent that private placement transactions can only be done with clean, unencumbered cash funds owned by the client and over which the owner/participant has full control.
Program group submits application to the compliance department for review
Within hours, most program principals will know if the asset and owner are legitimate. Also at this time, the origin and history of the funds are examined to ensure that the funds are clean (i.e., without criminal background or involvement in money laundering, drug trafficking, terrorist activity and the like). In addition, if the client has over $100M, program groups typically either know of the applicant, or have seen the person try to apply before.  There is a very small circle of real program providers, so when someone applies with large assets, the word gets around rather fast.
Client conducts “due diligence,” speaks with the program principal, and receives the contract
Most clients have never been involved with a private placement program before. Consequently, many will show the contract to their attorneys, who may advise against proceeding due to their lack of familiarity with secured asset management programs.  Needless to say, this can kill the deal or, at the very least, make the potential participant feel uncomfortable. The problem at this stage is transparency and trust and due to the private nature of the secured asset management program business, there is only so much information the program principal can reveal—and this is a common obstacle that prevents some participants from proceeding.
Client signs the contract, and then the program principal countersigns it to make it official
If a client signs the contract and does not complete the transaction, they may be reported to the authorities, and by doing so, they will be permanently prevented from participating in any secured asset management program in the future. As we said before, there is a small circle of program providers, and if they label a potential client as a non-performer, it is rare that any other program provider will spend their time to work with them in the future.
Client contacts their bank to complete the private placement program transaction
Banks are in the business of making money, and customer requests are secondary to the profit of the bank. When a client asks to block, conditionally assign, or transfer their funds, they are cutting into the pockets of the bank. If the bank loses that asset, they actually lose up to 20x that amount in potential loans from their central bank (Federal Reserve). With this in mind, most banks stall with excuses since that will frustrate most customers enough to kill the transaction. Even though this may be an obstacle, this should never be a deal killer since it is the client’s money, not the bank's. To complete a deal, you either need a bull personality or a great relationship with the bank. Otherwise you may encounter problems with the final steps.
Client’s funds are blocked/reserved, conditionally assigned, or transferred to the program group
Very few program groups request that the client transfers ownership of their assets. If they do request this, be very cautious, and expect something is not as it seems. Most private placement program traders only need a conditional assignment of assets, temporary beneficiary access, or the blocking of the assets in their favor for the period of the trade. This allows them to access a line of credit based on those assets which they trade for the client as per their contract agreement.
Program provider accesses his bank's line of credit
The program provider is the only one who can access a line of credit against the client's blocked assets. The bank completes thorough due diligence on anyone it loans to, and when that loan involves millions of dollars, it is far more diligent. In short, no bank will offer a line of credit for millions to someone they do not thoroughly trust, so there is not a lot to worry about when blocking assets in someone’s favor.
Program provider uses line of credit to purchase and resell discounted bank instruments
First, the issuing bank sells the instrument directly to the program provider at a significant discount (ex. 60% of face value). After the program provider buys the instrument, they then sell it to their “commitment holder” (ex. 66% of face), who then sells it to their “commitment holder” for a higher price (ex. 72% of face). This continues until the “exit buyer” purchases it with the intent to hold the note to collect the coupon/interest, and the difference between the discounted note and its value at maturity. This is the basic idea of how yields are generated in private placement programs using bank instruments.

Characteristics of investment programs

a) There are basically two types of programs:

  • The traditional investment programs, which have a duration of one-year banking, or ten months, or 40 weeks continuing.
  • The so-called “SPOT” or “BULLET” Trades which last for days or weeks and hardly exceed the period of one month.
    • These are used to boost the Investors balance

b) Income from programs

  • Yields of these programs are confidential and only the Trader corresponds directly with the Investor at the time of signing the contract. Rarely do Brokers and Advisors know sufficiently in advance any yield details of the programs.
  • We always ask investors to be wary of people who offer investment programs where monthly yields are exaggerated and outrageous.
  • Our Traders aim at all times is to create the maximum returns for the Investor.
  • Yields of these programs vary according to the time of year, according to the amount of collateral, the worldwide standing of the Investors bank, and according to the type of collateral used by the investor.
  • When we speak of returns for Investors, we always refer to gross returns, after which they take their benefits, both the financial institution and the  Trader. This is deducted from the Investors gross income, as are the nominal fees and commissions for Facilitators and Advisors.

Legal Disclaimers

  1. The information provided on this webite page is solely for educational and informational purposes. Our information is of a private nature and not intended for any commercial or non-commercial purpose and it does not involve the sale of securities. By providing this information, Cassiopea Group Ltd is not acting in the capacity of a Securities & Exchange Commission broker, dealer or investment advisor.
  2. We hereby declare that we are not licensed dealers, brokers or investment advisors. We are an educational consultant only and make no warranties or representations as to any buyer, any seller or any transaction. The information herein is not intended for the purpose of buying, selling, trading, recommending securities or offering counsel or advice with respect to any such activities.
  3. This is not a security offering. This is not an offer to purchase or invest. Because participation in private placement financial programs may be deemed a security under state or federal law, it is hereby disclosed to me that no part of any program outlined on this website has been registered with or approved by the Securities and Exchange Commission or any state securities commission, nor have any of the foregoing authorities passed upon the accuracy or adequacy of the information presented herein.
  4. Information provided on this website page about any financial programs is believed to be accurate and reliable, but Cassiopea Group Ltd does not represent that any specific returns or terms are obtainable from the financial programs described. Information contained herein could be erroneous. All financial programs are subject to change without notice. Potential program participants must do careful due diligence on and obtain specific information about each private program directly from the program managers.
  5. In providing project finance related services, we are not in any way acting as legal, tax and or other professional advisers, or giving legal, tax or other professional advice. We strongly recommend that any party intending to participate in any kind of financial transaction obtain independent legal or tax advice, as appropriate from a certified public accountant (CPA), a certified financial planner (CFP), an attorney-at-law or other licensed professional as regulated by your State or Country.
  6. This information it is not intended for the general public and all materials are for your PRIVATE USE ONLY.  Intermediaries are NOT advisors of any kind. We are business consultants providing business information to private individuals and private companies.
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