PPP: FAQs

A private placement program or a secured asset management program is a program of managed transactions commonly used by the very wealthy where the principal investment is fully or substantially secured through structured mechanisms provided by the program’s bank or the program group.
Although some private funding programs may have more flexibility, we represent that private placement programs can only be entered with clean, unencumbered cash funds owned by the client and over which the owner/participant has full control.
There is little risk of a participant losing his principal investment. The program participation amount is fully or substantially secured through structured mechanisms provided by the program’s bank or the program group. These mechanisms provide that the participant’s funds cannot be moved, transferred, encumbered or withdrawn during the program term. Before entering any program, potential participant's should carefully review program contracts to ensure they are comfortable with any risks associated with that program.
After the participant’s funds are protected, the program directors will put up, through their own credit facilities, counterpart funds equivalent to the value of the participant’s funds. These are the funds that are utilized for program purposes.
By contract, the program directors may either specify a "best efforts" yield or a guaranteed yield to participants as well as the length of the program and timing of yield disbursements.
  • How much is the Client placing into the trade?
  • What is the bank in which the Client’s cash accounts are held?
  • Where is the bank located?
  • Does the Trader operate a trade desk in the depository bank?
  • Is the Client ready, willing, and able to move his funds to the trade bank if a higher return is desired?
  • Is the Client’s bank ready, willing and able to issue a block against the funds?
  • What type of bank instrument will be placed into trade (BG, SBLC, MTN, CD)?
  • Does the Client have an existing instrument or is the Client intending to procure an instrument to place into trade?
  • What assets are backing the instrument?
  • What bank issued/will issue the instrument?
  • Is the issuing or depository bank ready and able to issue a block against the instrument or transfer instrument to the trade bank?
  • Is the instrument owned or leased?
  • If an instrument is leased, are all acquisition costs and interest paid?
  • Does the Client intend to fund projects with the returns?
  • What type of projects does the Client intend to fund?
  • What is the total required by the Client to fund his projects?
  • Are consultant commissions paid by deduction from the Client’s gross return or from Trader/Trade Platform earning?
  • Is the program provider a Trader or a Trade Platform
The transactions executed in these programs are the buying and selling of fully negotiable bank instruments. These instruments are delivered unencumbered, free and clear of all liens, claims or restrictions. The instruments are debt obligations of the top one hundred world banks in the form of medium term bank debentures of ten years in length. 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 program’s funds are never put at risk.
Operations will take place approximately forty 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. This does not preclude, however, that transactions may occur on short weeks that have a holiday.
  • 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 traditionally have been $10 to $100 million dollars or more. Only recently have smaller minimums been available, allowing more participants to qualify and have the opportunity to earn exceptionally high and safe yields. Participants must be “invited” to engage in these very limited enrollment programs. Individual programs can quickly become filled and are then closed to further participation.
  • The international trading of these banking instruments is a privileged and highly lucrative profit source for participating banks, and as a result, these opportunities are not generally shared with even their very wealthiest clients. It would be difficult, at best, to entice bank customers to purchase certificates of deposit yielding less than 3% if they were aware of the availability of other opportunities from the same institution yielding much higher rates of return.
  • The banks always employ the strictest non-disclosure and non-circumvention clause in program contracts to ensure the confidentiality of the transactions. They are rigidly enforced, and this further accounts for the concealment of these programs from the general public. Participation is an insider privilege. As a result, virtually every contract involving one of these high-yield bank instruments contains explicit language forbidding the contracted parties from disclosing any aspect of the transactions for a period of five years.
  • As a result, there is difficulty in locating experienced individuals whom are knowledgeable and willing to candidly discuss these opportunities and the high profitability associated with them without severely jeopardizing their ability to participate in further transactions.
  • As is quite evident from the foregoing, the key to profitability of these bank instruments lies in having the contacts, the initial resources to purchase them at the level required by the issuing bank, and the necessary resources and contacts to negotiate the instruments to the most profitable level of the retail or secondary markets. As one might imagine, those contacts are most zealously guarded by those asset managers regularly and commercially involved with these instruments.
  • As a result, the real secret of successful participation in private placement programs or secured asset management programs lies not in the how, why and wherefore of these transactions, but, and more importantly, in knowing and developing a strong working relationship with the program principals, bankers, lawyers and other specialized professionals who combine their skills and run these resources into lawful, secure and responsible programs with the maximum potential for safe yields.
The truth is that there is no smoke and mirrors involved. All of the programs are conducted under the specific guidelines set up by the International Chamber of Commerce (ICC) known as ICC 500 . The ICC and your local Chamber of Commerce are not affiliated. The ICC is the regulatory body for the world’s great money center banks and is located in Paris, France. It has existed for more than 100 years, and exerts strict control on world banking procedures.
The providers themselves are also NOT allowed to transact or do business on their own behalf, so this presents an opportunity for qualified individuals to take part and to participate as the initiators of the various transactions. Initially, these privileged opportunities were not offered outside of the Western European markets, but as the world economy has continued to grow and more real money poured into the safety of West European markets they needed to put this capital to work earning profits. This allowed the door to be opened for the first time to American and Canadian participants and to provide them with a unique opportunity to accumulate capital in a confidential manner, and to decide for themselves how and where that capital will be disbursed. Recent restrictions put in place by the U.S. Government, however, have led many foreign banks to restrict U.S. citizens from participation in their trading opportunities as individuals. Sometimes U.S. citizens can overcome this restriction through a corporate entity participation.
It’s important that everyone understands the difference between an intermediary and a referral source. To qualify as an Intermediary, you will have to play an active role in processing the transaction. That means educating the client or another intermediary so that everyone understands what is required and expected. It also includes being an active part of assisting in the preparation and/or review of the compliance package and facilitating the provision of additional documents or information. A Referral Source is someone who simply introduces two parties and is not actively involved in any transaction that ensues from that introduction. Referral sources are considered to have provided incidental assistance and will be paid a referral fee by the intermediary(ies) to whom their assistance was provided.
No. It should be pointed out that a few major U.S. banks do participate from within their banking operations based in Europe and the Far East, but they do not normally make their programs available to their customers. The chances are very great that your local branch manager has absolutely no knowledge of them, and may even deny their existence.The vast majority of U.S. citizens have not been made aware of the money making opportunities already available for fifty years to qualified European investors. The banks themselves are NOT allowed to take part in the management of these programs. This would lead to a massive cartel generating huge unregulated profits. The banks do, however, manage to make substantial profits from the program in the form of fees. Program management is the job of the non-bank private placement program providers.

IMPORTANT NOTICE

  • The answers above pertain primarily to large private placement programs available only to very wealthy parties. They have been included here to provide a larger context for the smaller private programs. That said, much of the information above is applicable to smaller programs.
  • Our provision of information regarding secured asset management programs and the programs that we illustrate is not a solicitation for anyone to participate in these programs. This information is strictly for clients and their agents who contact us directly for these services. We do not advertise or solicit for customers or function as a broker, dealer or investment adviser.
  • Potential program participants must always obtain specific answers to their questions directly from the principals of any private program that they are evaluating.

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  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.
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  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.
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