Saturday, May 19, 2007

SECRETS OF BECOMING A PPP/HYIP TRADER 1

PPP means :Private Placement Program while HYIP means :High Yield Investment Program.
With the increase in the volume of trade in the world economy due to emergence of stronger
National economies and increase in world population, there is a need for the rise in the involvement of financial institutions since they are agents of settlement of debt in trade. They are however to provide shock absorbers to these large trades between these emergent strong economies. As a result, they resulted to the more use of credit enhancements
which are bank instruments. Though, these have been in existence for long, but it is now more prominently used than it was before.
Large scale businesses use credit enhancements more and that is the reason for high demand of
credit enhancements as bank instruments and the use of experts on bank instruments. The use takes the form of leasing, buying, and selling thereby inevitably using the services of Lessors by lessees, Sellers as well as buyers. We have the following types of credit enhancements.
1. BG - Bank Guarantee
2. MTN - Medium Term Note
3. SBLC - Standby Bank Letter of Credit
4. L/C - Letter of Credit
5. Bonds - Could be corporate bonds i.e issued by Corporations, Government bonds, Performance bonds, Treasury Bonds
which are also government bonds mostly administered by the Treasury or the Central Bank or Federal Reserve of the country.
6.Foreign Currency (Strong Currencies) such as the United States Dollars (USD), Great Britain Pounds, , Euro, Japanese Yen, Chinese
Yuan, Swiss Francs(CHF) and so on.
7.Appraised Landed or Real Estate
8.Appraised artworks (Artwork are appraised by considering the years of existence and the artist that created it)
9. SKR (Safe Keeping Receipt) for Jewelleries, Precious stones, gold, diamond, Platinum
10. Cash
11. Line of Credit or Credit-line
All these are exchanged for credit and settlement of debt

HOW IT IS DONE
The trade for these instruments are conducted mainly as you would conduct a business which we all know here. Procedures given by either parties that is between Lessor and Lessee, buyer and seller must be followed in order to close deals.
Banks are ready to issue BGs to individuals and corporations but the individual or corporate must have been found worthy by the bank and have a credit standing with the bank. The person might have been using the bank for long so that the bank can stand for any day and anytime. With this condition, the bank can issue Bank guarantees for such people. Corporations can also issue bonds
provided they have a very strong bank account balance. The instruments are used for payment of goods and services especially when the cash to be used is not readily available and since business is very unpredictable, one cannot wait till he has the cash to get what he needs at that particular time, therefore the use of bank guarantees or credit enhancement becomes inevitable.
Bank Guarantees are usually used as collaterals to get loans from Financial Houses, Banks and Private Lenders. They are used to give line of credit.
Most individuals are not able to have bank guarantees issued to them but it is only few individuals that are able to. But one can act as mandate for these few individuals and can conduct businesses on their behalf. So almost anybody with at least any business ideas can enter into this trade so far the rules and procedures are followed.
SECRETS OF PPP/HYIP are usually done using credit enhancements. This will be explained using figures and examples. A BG which has 100 million USD face value was leased at 10% of face value that is paying 10 million USD for 100 million USD worth for one year. He gets the BG and gets a credit line against it from a Bank or from other private sources such as finance houses, wealthy individuals and Hedge funds. At least a credit line of 80% of BG value will be granted which can be used in form of a loan.
At the end of this chain of transaction, we use the 10 million USD to get 80 million USD that is 800% gain. Though for the main time, it is like a loan in which you made an equity contribution towards. Since a large amount of money has come in as profits, then this can be put into large volume trade to yield more. This is just the secret.

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