You aren't ansering anything. You said that you buy European medium term notes. They are fundamentally the same as any other bond, someone borows some money, they give you coupons and final payments in return. The yield you get depends on the perceived credit quality of the issuer. There is nothing that unusual there, and nothing that would mean you can get 20% risk free over 10 months risk free.
Everyone else in the developed world is crying out for yield, but you can go through some unnamed financial advisor and make chunks buying and sellling these bonds/notes through him. If you are the middle man, why do people go through you and pay a premium? There are a whole host of ways I can buy Shell's corporate debt for instance, why would I choose you/your FA?
Why would a triple A corporate be effectively paying 20%+ interest + comissions to go through some back market to raise finance? There are a whole truckload of institutions happy to pay you 2 or 3% a year for your AA and AAA bonds, and they aren't even risk free.
You have funds in a trust, but you have positions on two trades, who are they with? Why is the no risk with these trades? Why do your counterparties always pay when the ones the companies I work for suffer defaults? What happens if the underlying bond defaults? Is there any hidden gearing? Who set up the trust, your advisor or your solicitor?
There are no obvious reasons why you can't name a financial advisor or the firms involved. There is nothing illegal about buying and selling bonds and notes, and nothing illegal about giving financial advice. There are also legal ways you can hold them and not pay tax on them.
I don't get it.
are super knowledgeableEveryone else in the developed world is crying out for yield, but you can go through some unnamed financial advisor and make chunks buying and sellling these bonds/notes through him. If you are the middle man, why do people go through you and pay a premium? There are a whole host of ways I can buy Shell's corporate debt for instance, why would I choose you/your FA?
Why would a triple A corporate be effectively paying 20%+ interest + comissions to go through some back market to raise finance? There are a whole truckload of institutions happy to pay you 2 or 3% a year for your AA and AAA bonds, and they aren't even risk free.
You have funds in a trust, but you have positions on two trades, who are they with? Why is the no risk with these trades? Why do your counterparties always pay when the ones the companies I work for suffer defaults? What happens if the underlying bond defaults? Is there any hidden gearing? Who set up the trust, your advisor or your solicitor?
There are no obvious reasons why you can't name a financial advisor or the firms involved. There is nothing illegal about buying and selling bonds and notes, and nothing illegal about giving financial advice. There are also legal ways you can hold them and not pay tax on them.
I don't get it.
love this, always interesting to read your posts.