Wealth & finance International - Finance Awards 2016

www.wealthandfinance-intl.com 15 Arbitrage transactions with discounted bank instruments are done in a similar way. The involved traders never actually spend the money, but they must be in control of it. The client’s principal is reserved for the trader to leverage a non-recourse line of credit. The trader is responsible for the unlikely need for repayment. Confusion is common because most seem to believe that the money must be spent in order to complete the transaction. Even though this is the traditional way of trading - buy low and sell high – and also a common way to trade on the open market for securities and other instruments, it is possible to set up legal arbitrage transactions if there is a secondary buyer in place, and the trader can show he had the money in hand (the credit line) before he executed the first round purchase. When dealing in excess of hundreds of millions in face value, obtaining the credit line first is where your funds come into play, and you are rewarded handsomely for allowing them to support acquisition of the line. Let me repeat: The reason why client funds blocked for use in a Project Funding Trade Programs are always safe without any trading risk: The trader is using the Client funds to obtain a credit line, which is what is used in his or her trading activities, and with responsibility for repayment of the line on the trader, not the investor, for repayment. A qualified investor must (a) be a corporation or other entity, (b) must have cash assets in a top western bank or gold bullion equivalent to at least 140-Million Euro or more, and (c) must follow specific instructions to make such a contract possible. Funding projects using free-cash money from these profits, along with protection of the investor principal allows the investor to build debt-free projects, which can be profitable in their own right. Michael Weiner is based in Washington, DC, and can be reached at [email protected] or 001- (202) 657-6960. His website is www.preconstructioncatalysts.com There IS such a thing as free-cash funding. But it’s only forUltra-High-Net-Worth Corporations, Foundations and Nations.