In a world where using others money is a daily practice what exactly is a secured account loan? Very simply put, one obtains a fixed rate loan. The loan is secured for one year and one day. The interests are paid every month and the capital at term.
The amount is normally in the hundreds of millions USD or even billions. The lending bank will agree to the terms and deposit the loan money in a secured non-signatory account. The borrower gets a second account where the interests will be paid from.
Now the good part, the secured account becomes part of the trader’s portfolio and is daily scanned for transactions. The trader issues a contract to the borrower with copy to the bank that the funds in the secured account will never be altered or remove and are one hundred percent secured.
For one year the trader is generating a return for the loan amount. The results are enough to generate the interest payments on the loan, a commission for the intermediary and a large amount to pay back the loan with a generous surplus.
The returns are set by contract with the usual restrictions about risk and the basic loan remains secured. The only way to end the process is to retrieve the funds from the secured account before or at term. But considering the returns, the practice shows a repeat of the process.
As I said, I did verify this protocol with a major bank and they did confirm it was a bank practice in association with privileged clients. Needless to say those clients are showing large assets and / or collateral. Most important, I was clearly told that although I was well informed on the protocol I would not be able to get that type of loan. In clear I am not, yet, in there sand box.
Not being able to participate I lost real good opportunities but being in direct contact with the trader allows me to think I will someday serve as the intermediary. Why would one need an intermediary and who would that be? Quite simply because one needs to be introduced to the trader unless like the CEO you have a privileged relation with your bank. But the bank must have in turn a privileged relation with a trader in that protocol. Not all have and not all like the idea of there client make more money then they do.
Did you know about that protocol?
This one allows you to invest as little as 2$
