OfflineI brought this up some time ago without too much insight. Has anyone heard of them and/or have had success with them?
As I'm understanding them, the premise is you buy a $100M bond for $80K, lets just say; and then you get assets to fill the bond to make it worth that $100M. The bonds are fully insured at $100M, so will pay out the $100M at the maturity in 10 years; or you can sell them earlier at a discount of 30% (so $70M for a $100M bond).
I remember all kinds of bad things about bonds in corruption a couple of years back; but I never heard not even a peep about these. Does anyone know anything about them?
I've enclose a Q & A sheet about them, but I'm reluctant as they sound too good to be true; and USUALLY if something sounds too good to be true, it is.
Anyone?
Sounds like the old zero coupon bond that was used creatively in real estate about 20 years ago. Package it nice and market it twice. It was also used in the note business but todays low yields make it impractical. But this may be a new version that works with todays low yields.
Further research yields that it is nothing like the old zero coupon bond. It appears to be a way for small companies with debt to raise capital instead of going public. I may be wrong. It's out of my league. I would defer to Mr. Bill Pohl who has the accounting background
is an exemption for the sale of securities (stocks, bonds, notes, etc.) to qualified institutional buyers in an interstate offering. If the securities were sold completely intrastate, the SEC rule/exemption would not apply. But then you have to watch out for state rules/exemptions, so nothing is easy. Warren Buffet can buy them but Tammy cannot. (Unless you are a real powerhouse investor and have a bazillion dollars!!)
The high yield portion simply refers to the abnormal risk that these bonds hold. They do not have to be zero coupon bonds, but bonds of this nature often are. Hope this helps.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
(at least YET
) buy the AMERICAN 144A corporate bonds, but I *CAN* buy the Euro Clear ones... Do you know about them at all? Thanks for the responses Bill and Tom!
I have a Private Banker that I can refer you to, he knows about EuroClear Bonds. PM me your contact info and I will point you in the right direction.