Investing and Funding With CoolStarts

Monday, April 09, 2018

Funding for you project

Recently I have become involved in project funding. I offer many options of funding. If you are interested in a business line of credit up to $250,000 with 0% interest for the first year, or a term loan for up to $300,000 with no upfront fee and low interest rates, I can assist you.If you have a larger project of $20M or more that needs funding, I can help you with that as well.

Friday, February 20, 2009

The Mechanics of an MTN Private Trading Program

The Mechanics Of A MTN Private Trading Program




Considering that top major banks issue Medium Term Notes (known as MTNs and Mid-Term Notes) to raise funds in both U.S. and Euro dollars, we can better understand that they are for the purpose of generating Operating Loans and issuing Letters of Credit to businesses which wish to buy material and products from other business organizations in other countries. To further expand on this in laymen terms, this therefore results in an International Treaty whereby the U.S. Dollar (or the Euro) becomes the common Medium of Exchange for International Trading.



By Federal Law, a European bank is not allowed to sell such Medium Term Notes directly to the Public. They must be issued and sold through a Federal Reserve Licensed Trader; just as in the same context a Corporation or a Municipality must sell Bonds through a Dealer or Underwriter.



The Trader, aiding in the distributional sales of newly issued MTNs from the major sized Bank will have a $50B (Billion) contract (or of equivalent amounts) with the Issuing Bank to purchase MTNs for immediate resale. This Trader would instigate the following:



A Non-Revocable Contract (see further explanation in Paragraph A) with an Exit Buyer, such as a Pension Fund, to buy those MTNs from them immediately, and with a contract with a Participating Investor, acting as the Trader's 'Associate' to furnish the Proof Of Funds (POF) required, simply as a formality, to start and continue the Purchase and Resale series of Transactions.



The Trader also makes contractual arrangements with their own bank, through their bank's 'Back Room' Trading Department, to act for them during the Transactions of $100M (Million) or greater. This $100M amount is the minimum set by the U. S. Federal Reserve for this type of Bank issued MTN Distribution.



The 'Associate' thereby arranges for their own bank to issue to themselves a POF using $100M in Cash Funds, which are wholly owned by them, in their account at their own bank. This enacts the ability to obtain cash credit of $100M for the POF. This POF is then sent to the Trader in accordance with the contract between Trader and their 'Associate'.



It is important to note that Medium Term Note Trading is a very specific process. When less than experienced Associates expect absolute perfection and "up-to-the-minute" communication, these immediate reactions inevitably cause more delays, short-comings and frustrations on behalf of not only the Associate but the Trade Platform as well.



Several factors influence the timing of entering a trade; the current availability of Medium Term Notes, which can easily be in short supply, the timing of the trade submission and the specific programs that cancel without notice. On occasion, these unexpected market trends give a false illusion resulting in the sophisticated MTN Trading Platform to appear chaotic. Nothing is further than the truth.



Below is a typical scenario of a Private Mid-Term Buy/Sell Program.



a. The Trader's Bank communicates with the Issuing Bank as well as with the Exit Buyer's Bank, obtaining a detailed agreement with the Issuing Bank Officer and with the Exit Buyer's Bank that they are both prepared to commence the contracted series of Transactions. The Exit Buyer's Bank forwards a POF to the Trader's Bank for the amount of the first purchase of $100M (Note - When a POF has been issued for the Exit Buyer and forwarded to the Trader's Bank, there is a legal Funding Commitment to complete that Transaction, which may NOT be revoked while the transaction is taking place).



b. The Trader's Bank forwards to the Issuing Bank a POF in the name of the Trader and requests that a MTN be issued in the name of the Trader, along with an Invoice at a discounted price, say for example only $97M, payable in 8 Hours.



c. A copy of the Note and an invoice at $97M, is forwarded to the Trader's Bank, which authenticates signatures and MTN terms to verify compliance with the Purchase Contract.



d. The Trader's Bank then forwards the copy of the MTN, along with a Conditional Assignment of the MTN, to the Exit Buyer's Bank, along with an Invoice at the Exit Buyer's Purchase Contract Price, $100M for example purposes, payable in 4 hours.



e. The Exit Buyer's Bank authenticates signatures, verifies compliance with the Purchase Contract, and pays the $100M Invoice price to the Trader's Bank for credit to Trader's account, within the 4 hour limit.



f.The Trader's Bank pays Issuing Bank's Invoice for $97M within the 8 hour limit, along with instructions for the Original MTN to be sent to the Exit buyer's Bank by courier.



g. The Trader's Bank debits the Trader a Bank Fee (1/4% for example purposes) for their Services Rendered, and forwards the balance, $100M minus $97M minus 1/4 %, to the Trader, who pays the Trader's 'Associate' for their Service Rendered.



h. The Procedure used for this example, typically takes place 4 times each day of a 4 business day week, and repeats until the Trader's Purchase Contract is completed. Using this formula, the weekly payments to the 'Associate', would be equal to 22% of their POF amount. (3% per transaction x 4 per day x 4 days per week = 48% - 4% as Bank Fee = 44% / 2 = 22% = $22M per week)



Note: The Operation described above is a very conservative one. There are other MTN Trade Operations, of the same MTN basis but involving a resale of the MTNs by the 'Exit Buyer', which have a higher Rate of Return to the Trader involved, and therefore an even higher payment to the 'Associate' involved.



An experienced Associate can safely state that with the listed procedure and controls for the Transactions, the only reason for a Transaction failing, once commenced, would be for the Exit Buyer's Bank to default on completing a contracted purchase of a Note, which would result in a jeopardy to their Bank Charter.



Should any default take place, it would be quite simple for the Trader to make the required Payment, using their own Funds, to complete their purchase of the Instrument, and to immediately sell it to a different contracted Exit Buyer. This action by the Trader eliminates any risk of loss by the Buyers and Exit Buyers and 'Associate'.



NOTE: With minor variances in the connection of an Investor's Funds to a Trader's $100M Operating Fund, an Investor may enter into an Operation with $10M, or more, with similar percentage payments to them for services rendered. By the same token, an Investor may enter into a trading operation with as much over $100M as they have available.




InvestorEarth.com is an educational site dedicated to providing investors proven, high yield investments in a global recession market. Please visit http://www.investorearth.com.



Source: http://www.submityourarticle.com



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Wednesday, January 28, 2009

MTN's Usage For Managed Buy-Sell Programs

Banks Role In Providing MTNs Used For Managed Buy-Sell Programs




We are in a day and age where the best methodologies of investing in a safe, secure and highest yielding arena seems to be as available as an ice cold drink in the center of the Sahara. While there is a cause for alarm, do not despair. Those who truly understand the inevitable opportunities, regardless of the markets and economy of whole, understand the importance of capital influx in this otherwise lackluster financial environment. All that is required is the appropriate knowledge.



When a corporation decides to generate additional capital, outside of the daily meanderings of business, those 'in the know' who take an inclusive survey of their financial affairs begin the process of further growth by a certain process. This process of generating additional liquidity can be done by filing a shelf registration with the SEC. Upon acceptance, MTN programs can be further perused, pursued and implemented into their modus operandi. Once a MTN program is established, this corporation is queued up to either enter the MTN market with frequency or on an intermittent level at both sizeable and moderate offerings and levels. MTNs provide much more flexibility than those more traditional underwritten corporate bonds that are also issued from shelf registrations because the entire debt issue is not made all at once through a single maturity and coupon rate.



MTNs are primarily offered on an agency basis. While this is the standard protocol, most programs consider additional distribution means. As one example, agents of these MTN programs acquire notes for their own accounts, as well as for resale, at par or the standing market rates. It is also common to see MTNs sold on an underwritten basis as well, as this still substantiates the task at hand.



When a corporation has arranged to play the role of agents to apportion the notes to investors, their registration filing usually incorporates a list of these investment banks as well. With MTNs, most will see four or less agents since the inclusion of additional agents emboldens competition amongst investment banks and decreases financing costs. Inherent to the financial mecca, we see that the subjugation and allocation of MTNs is ruled by those New York derived investment banks.



Agents, who are enveloped by their issuing MTN provider(s), post these offering rates through a range of maturities. To get a broader understanding of how this works, it could fall under the following classification: nine months to one year, a year to eighteen months, eighteen months to two years, and annually thereafter. It could also be a perpetual sort of offering where it will remain 'open' for up to five years at a time in certain scenarios. Many of these issuing MTN providers post rates as a yield spread over a Treasury security with a comparable maturity rate.



The attractiveness of these posted yield spreads with maturities of three to five years indicate the issuers desire for fund raising at these maturity levels. When a corporation, or investor, shows willingness to perform on an MTN offering, the agent will then contact his issuer, gathering validation with regard to terms of the transactional contracts to be drafted. Within this maturity range, the corporation and/or investor can determine the end maturity of the note sale as long as it is acknowledged by the issuing company. The issuer will then lower its posted rates once it raises the desired amount of funds at a given maturity.



As a closing, so we can play the role of the issuer, to give you an example, the issuer might lower its posted rate for MTNs with a five-year maturity to 40 basis points over comparable Treasury securities after it sells the desired amount of debt at this maturity. Bear in mind, issuers also change their offering rate scales in response to changing market conditions. Issuers may withdraw from the market by suspending sales or, alternatively, by posting narrow offering spreads at all maturity ranges.



The proceeds from primary trades in the MTN market vary considerably dependent on the size of the transactions. After the amount of registered debt is sold, the issuer may "reload" its MTN program by filing a new registration with the SEC.



Subsequently, the process begins again.




InvestorEarth.com is an educational site dedicated to providing investors proven, high yield Private Trading Investments in a global recession market. Please visit http://www.investorearth.com .

Tuesday, September 02, 2008

Funding your business or Project

Recently I have become involved in project funding. I offer many options of funding. If you are interested in a business line of credit up to $250,000 with 0% interest for the first year, or a term loan for up to $300,000 with no upfront fee and low interest rates, I can assist you.If you have a larger project of $20M or more that needs funding, I can help you with that as well.

Tuesday, June 17, 2008

Bulk REO Packages Available Nationwide!

Hello fellow Investors,

I am a consultant in obtaining Bulk REO (bank owned real estate) packages. If you have been seeking true bulk REO packages, then I am the person to contact. I have direct contact with nation wide banks and can set you up with packages from $5MM - $1B+ and up. I can get both residential and commercial REO's.
You must be able to show verifiable intent with both an LOI (letter of intent) and then a POF (proof of funds.) Smaller packages are sometimes available as well. If you are interested please contact me. I have complete details. Steven 615-337-8332 or coolstarts@gmail.com




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Thursday, May 08, 2008

Looking for Bulk REO (real estate owned)Packages?

If you have been seeking true bulk REO packages, then I am the person to contact. I have direct contact with nation wide banks and can set you up with packages from $50MM and up. Easy-to-follow procedure develops Bulk REO packages - new, clean and custom made. $50M - $1B+
Call me and I will tell you what you need to do to get what you are looking for.
Call Steven at
615.337.8332 Central Time

coolstarts@gmail.com

www.coolstarts.com

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Tuesday, March 20, 2007

Greetings to Everyone!

Last night, Steven and I were honored to meet with a young couple in search of a new home for themselves and their children.

Because of a few credit blips along the way, they were unable to qualify for a conventional mortgage, but thankfully they ARE able to receive help through the Home Buyers Assistance Program.

They are highly motivated, because their motivation comes from wanting a better life for their two girls. Soon, they will be able to move out of a crowded apartment and into a home that will meet their needs, in an area where they want to live and where their children want to attend school.

In other words, this couple soon will be living the American Dream!

It means a lot to Steven and myself to help them achieve the American Dream.

If you have credit challenges, self-employment income, or other reasons for not being able to qualify for a regular morgage, visit our website at http://www.coolstarts.com to see if we can help you.

To your success,

Karen and Steven