General Information

Below the Procedere is to be represented with the completion by money market business by means of MTN' s bank debentures as well as Treasury bond and Treasury Bills. The knowledge around such possibilities is a condition for understandable recognizing of the chances on the money and capital market and basis for a smooth execution of such transactions.

It is well-known that there is outside of the bank switches of cash transactions, in which the normal banking customer cannot participate, so z. B. Euro-dollar business, foreign exchange and interest arbitrage business, trade with certificates of indebtedness and. A. m. One of the reasons for the exclusion of the broad bank public probably lies in the height of the transactions and/or. the acted papers (i. D. R. at least 10 millions USD) as well as the complicated and pedantic way.

By Brokern, models are offered to loan agents and partly also of doubtful companies, which give also the opportunity to Small investors to take part in money market business. This is to be seen quite positive from the thing, from the risk however problematic, there the investor its money usually an unknown company (non-bank) to entrust is.

In the consequence the investor has only limited right of disposal over his money as well as only one partial requirement on offered collateral (usually over trustees) and is on the seriosity of the respective partners dependent for better or for worse.

If world-wide daily hundreds money market business between large investors and banks are locked, then in the press only on dubious machinations particular is reported. (see also „Crime report "to the international Chamber of Commerce, Paris). Obscure business does not correspond however to the conceptions of respectablly working investment companies.

The goal is direct it, with the respective investor, quite also over a respectable advisor to complete and from this bank (or a third bank) guaranteed have in a bank these business. Usually the capital of the investor necessary for the investor business does not even leave its account, as far as it lies in the account of the investor with a Western European major bank. One year may not be only moved long, is thus blocked.

This is examined via screen. The money market business as such is absolutely respectable and by important companies is accomplished. The participation in a direct participation possibility at bank-secured on and sales of MTN' s or other bank papers is a privilege of fewer investors, who check up the money and capital market business and to the conditions of the FED submit.

Which are now Geldmarktpapiere, which offer absolute security

It distinctive between short term bank papers, the SLC `s (Standby type character OF Credit) with a running time of one year and one day and medium-term, the MTN `s (medium term Notes) with a running time of ten years and one day. First (SLC) are so-called Zerobonds, have thus no interest promise. They are discounted acted therefore. The MTN `s is with interest charges of 7,5% per annum. equipped.

Both bank instruments become normally only starting from an order of magnitude of 50 millions In addition, USD spent, it are papers in an order of magnitude of 10 millions USD in the market. These minimum amounts are fixed of the FED. The completion of such business takes place following the regulations after ICC 500 (international Chamber of Commerce, Paris).

As now these bank instruments (SLC and MTN) developed

Both bank instruments have their origin in the USA, where it is forbidden due to legal regulations the banks to make bank guarantees available. Here with the SLC an instrument was created, which essentially corresponds to a bank guarantee and the possibility of special liquidity creation gives which to the banks.

Both instruments (SLC and MTN) are spent on the trade at the money market exclusively by select major banks. The SLC `s is brought as Zerobonds into the trade and is comparable with abgezinsten bank debentures.

They were developed following the recommendations regarding Dokumentenakkreditiven of the international Chamber of Commerce in Paris with the standards ICC 500. Same applies s to MTN for', whereby however an interest promise (usually 7.5% per annum) in the document (separate) is defined. In adjustment to the respective market interest this MTN is brought `s likewise discounted into the trade.

These Geldmarktpapiere in the normal letters of credit (CSLC or DLC) have their formal-legal origin, the classical letter of credit of a irrevocable receipt in the international business after uniform guidelines. These letters of credit/letters of credit for the provision of security of payments from commercial transactions were extended in the course of the years to warranty letters of credit (SLC `s).