IFA GROUP is focused on FC MTNs issued by HSBC Bank London or other top rated bank in UK or Europe
We can arrange the issuing of a contract by the Seller for Fresh Cut MTN, and issuing bank is HSBC London or other top rated bank in UK or Europe.
Price of FC MTNs is generally around 25-35 percentage points lower than the price of Slight Seasoned (SS) MTNs. Further, an exit Buyer can be provided by contract for setting a buy/sell transaction, which it means for the Buyer a minimum spread around 25-35 percentage points yields, depending by the daily buy/sell securities rate.
The FC MTN purchasing procedure is a fully bank-to-bank transaction, with “full responsibility” as it will be stated in the SWIFT procedure by the Issuing Top Bank, then the purchasing procedure is with zero risk for the Buyer.
The Provider, after positive due diligence, will contact straightforward the Buyer, to arrange the purchasing of the FC MTN.
The FC MTN is issued with ISIN (along with the CUSIP) and it’s assigned by the Seller at the same time as the assignment of the FC MTN to the Buyer.
Note that the purchasing procedure contemplates that the Seller purchases the FC MTN in the Buyer’s name, then the FC MTN will be available for delivery within 48 – 72 hours from that first purchasing. The Buyer won’t sign the purchasing contract until that the FC MTN has been purchased in its (Buyer) name by the Seller, and the Seller’s Bank confirmed it with “full responsibility”.
In fact, only after that the FC MTN has been purchased and it is lodged in the Seller’s custodial top bank account, ready for delivery, only in that moment the Buyer is requested to sign the Purchase Contract.
The confirmation message by SWIFT MT799 from the custodial bank with “full responsibility” will include the registered ISIN and CUSIP for the FC MTN and references the Purchase Contract number.