FOREX INVESTMENTS

Have you heard about Forex, but don’t understand the risks and rewards of investing? If so, click here to learn more about the fastest growing market in the world.

HEDGE FUNDS

Did you ever wonder what makes Hedge Funds so successful? If so, click here to learn the real story about the hedge fund market, as well as the benefits and risks to hedge fund investing.

MANAGED FUTURES

Have you heard that Managed Futures Trading is rare and quite risky? Well, click here to learn the facts about one of the most profitable investment markets in the world.

PRIVATE EQUITY

Are you interested in learning more about Private Equity or Venture Capital investments? If so, click here to get more information on the market that fuels wall street.

PRIVATE PLACEMENT

Are you interested in Private Placement Programs, but don’t know what to believe? If so, click here to start learning fast from someone who has been successful.

Home » PRIVATE PLACEMENT

What is a Medium Term Note (MTN) ?

medium term note mtn bank instrumentDespite the growing number of people actively participating in the private placement and bank instrument business, there are very few that truly understand what a medium term note is.  Though this amuses us to some degree, it also has alarmed us enough to take action.  Since the “MTN” (medium term note) is a major reason the private placement business exists, we felt like it would be a good idea to connect the dots for our readers with less experience.

For those of you who understood bank instruments prior to this article, we hope this provides additional insight to educate you further. For the rest of our readers, this information will open the door to a new understanding of wealth, while providing facts to help remove uneducated PPP brokers from your network.

By definition, Medium Term Notes (MTN’s) are debt instruments which are created by banks and sold to investors, having a predefined face value, date of maturity, and annual interest rate.

For example, you may have a 10 year note issued from Barclays Bank worth 100M, collecting a coupon (interest) of 6.5% per year.  Each year you would receive 6.5M until the date of its maturity, where you may cash it in for its full face value.

Though an MTN has similar characteristics to other debt notes, it is completely unique due to its flexibility, price, resale potential, and ability to be purchased at a discount from face. Now that you know what a medium term note is, let’s see why they have become so popular recently.

Over 50 years ago, when medium term notes (MTN) started to become available, there were very few passive investments which could compete with the benefits of owning a bank instrument. Given the high annual interest rate, possible discount from face value, and solid backing by top 25 banks, many flocked toward those who issued and owned the notes, looking for ways to financially capitalize.   Once the idea of “trading bank instruments” caught on in the secondary market, the private placement business grew steadily, until the entire business changed with the introduction of the internet.

With the explosion of the internet, the secondary market has been flooded with tons of new brokers trying to broker buy/sells of medium term notes, and bank guarantees. Though it may be possible to close a bank instrument deal, it takes an act of god to do so. The real discussions about bank instruments, at least for those who are successful, revolve around private placement programs.

Bank instruments, such as medium term notes and bank guarantees, are the lifeblood to any private placement program.  Since these notes can be purchased at a discount from top banks, traders can earn quite a hefty profit, all while being risk free due to a prior contractual obligation they had with an “exit buyer”.

As we all know, an “exit buyer” is the entity which purchases the MTN/BG at a slightly higher value, but still discounted from face. Once the first exit buyer purchases the note from the trader, the process repeats itself several times until a final buyer purchases it to hold until maturity. By that time, the note has a very small discount (ex. 93% of face), but many conservative buyers are happy with the remaining spread and annual interest.

Though we could go on forever on the different topics related to medium term notes, if you understand this article, you will have far more knowledge than most you will speak to.  If you would like more information on bank instruments, and their role in private placement programs, please read our extensive article by clicking on this link: “Understanding Bank Instruments, from Bank to End Investor”.

Remember, education promotes safety, and in the private placement world, safety always comes first.

InsideTrade LLC Staff
Phone: (949) 444-2111

27 Comments »

  • mr finance said:

    I know these types of things exist but can you really make money in this business? I dont really know where to start. Can someone advise?

  • Alicia Bryan said:

    Yes, you really can. We'll show you how. Please, contact us to get started.

  • Shawn Mathis said:

    i would like to get started in the business but do know where to start could you please help me.
    Shawn Mathis

  • Harvey said:

    Hi Alicia what is your involvement in the business?

  • Glossary of Private Placement Program Terms | InsideTrade LLC said:

    [...] The individual listed as the owner of a debt instrument, such as a medium term notes (MTN’s) or bank guarantees (BG’s). Best Efforts: This is a term used in any real private [...]

  • Seb Oleg said:

    Sir, Firstly the best regulated Active assets managers are in Switzerland. They are regulated and there is no smoke and mirrors. There is no such thing as a FED TRADER or any other weird ideas that these Joker Brokers Like Alicia Bryan promote. A well versed RIA will give you correct advice. Any regulated trader in Switzerland will be regulated under A.R.I.F. if they are not DO NOT part with your money.

  • Bank Instruments (MTN / BG), from Bank to Investor | InsideTrade LLC said:

    [...] that you have gotten a true understanding of what a bank instrument is, as well as its various purposes, it’s time to do some more exploring through our related [...]

  • mtn programs said:

    [...] programs What is a Medium Term Note (MTN) ? | InsideTrade LLCMedium term notes (MTN's), are bank instruments that are traded in private placement programs. Read [...]

  • Billy said:

    Hi Alicia
    please can you send me test to my e-mail : sglxau@yahoo.com
    i would like to start with someone, and i will be happy if you advise me or join me.
    please be with me cuz i'm new and the money which i put it is 10M
    thank you

  • fred said:

    MY ASS $10m. You are smart enough to end up having $10m, and stuiped enough to ask help on this forum? Something is array.

  • Kenneth Barley said:

    I have clients looking no POF MTN's. Can you provide guidance?

  • Nikhil said:

    please send your specific requirement ( MTNs ) direct on our mail
    gateway_to_finance@yahoo.com
    so as to enable us to send you complete offer supported with paper work.
    Nikhil

  • www.gbciltd.com said:

    Good Information. But needs a good standing people not simples to do such a transaction, We are professionals in this issue

  • brian muhammad said:

    Dear Ms. Bryan, i am intersted in your MTN program that was mentioned in the Insider trader blog. could you please send any information youhave to my email. thank you

  • @thejokerbrokers said:

    This is a pretty good article on MTN's. Could there be better moderation? Thanks guys, from Jeff @ http://www.thejokerbrokers.com. Feel free to contact us at our 800 number.

  • Mike watson said:

    Can anyone direct me to real sellers of mtns. Thank you
    M. Watson

  • Ronnie Golding said:

    I am an appointed facilitator to various private placement programs/banking platforms, and I am in a position to introduce you to various Traders who operate such programs. However, there are stringent rules that must be adhered to, in order to be invited to join.

    Please contact me for further information. trading@ravensdalefinancial.com

    Look forward to b eing of value to you.

    Ronnie Golding CeMAP MIFS FIOTA

  • @babbargroup said:

    e-mail: babbargroup@yahoo.in

    I have USD provider…
    wanted euro : 15% gross
    net 8% to the euro provider
    commission: 4%
    2% to the usd provider side
    2% to the euro provider side
    3% to m/s universal exports

    Please check the following email:

    if you can arrange euro p in banco santandar, zurich or vienna of austria or europ have account in banco satandar in any european countries ,we can arrange the exchange within
    15 minutes , the provider now but must be paid we can close the deal tomorrow.

    Best Regards
    c.l.babbar

  • Azmi said:

    dear sir,
    when i try to view your website, i can see nothing except blue frontpage. What happen to your website?

  • InsideTrade Staff (author) said:

    Please try to view the website now. I am sorry, but we have never been informed of a problem like this.

    Thanks for your comment. Have a good day!

  • Finchley76 said:

    FRAUD – Has taken my money and failed to deliver the promised PPP platform – AVOID!

  • frederic said:

    I have connection for MTN , anyone who can buy let me know.
    encofr@aol.com

  • the truth said:

    all broker crap. General motors was the first to issue MTN's. Any security must have a prospectus, offering circular or term sheet. If the so-called seller cannot provide you with any of the above documents which would also include an ISIN, forget it. If you are not licensed and get involved in a MTN transaction you could end up in hot water. I Know many people who have been prosecuted behind these PPP's. Be careful this is not a business for those who do not understand the market or finance. All of this CIS, passport crap is for brokers. Real buyers and sellers execute MTN transactions trade desk to trade desk. Please remember that the trade desk is acting on behalf of their client, be he seller or buyer and has vetted the client prior to the securities account being opened. Therefore, say Merrill Lynch is my trade desk and you have passed compliance to open the account. Why would I send a Client Information Sheet to anyone? Never close on one of these and I guarantee it. Very highly regulated market

  • daniel said:

    I can thru my platform.Need face value, pop, codes, owner bank

  • DRAGAN GURU DJURAGIN said:

    My group is buying MTN. For details and contract write to: Wealthmatters@hush.com

  • John Ra said:

    My group has a buyer for MTN(Issued one up to 500M). For details and contract write to: ufmnewyork@gmail.com

  • Mark said:

    This website is a broker BS! A real trader never advertise , they always keep low profile and invisible.

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.


× five = 10

);