tag:blogger.com,1999:blog-2208442994581866623.comments2021-12-25T17:32:18.561+01:00Financialization of Physical Energy Commodities MarketsProfessor Eric Abhyankarhttp://www.blogger.com/profile/03554977696371759766noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-2208442994581866623.post-22833620644266829122015-02-11T07:05:46.605+01:002015-02-11T07:05:46.605+01:00Yes,Banks do issue Fresh cut BG/SBLC at 45%-50% to...Yes,Banks do issue Fresh cut BG/SBLC at 45%-50% to their clients which are valid for one year one day.You will see for Bank BG/SBLC is a piece of paper maturing after one year one day and selling it for 50% they are getting 50% of the face value of the BG/SBLC,they make more money much more money in trading so that they have no problems in paying full face value of the BG/SBLC at maturity.<br /> Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-81827399204415412762014-01-29T17:40:51.771+01:002014-01-29T17:40:51.771+01:00The 50% "CASH" margin is the initial req...The 50% "CASH" margin is the initial requirement to issue the Bank Guarantee. Banks make sure that institutions have Assets to make up for the difference plus any interests due. <br />Such liquid assets are most of the time -M1 or near cash - type of assets that are very liquid and easy to trade. <br /><br />In fact the amount securing the instrument amounts to more than 100% the face value.<br /><br />Such institutions have close relations with their clients and in some cases insurance contracts are made to compensate parties in case of default.<br /><br />It seems that there are a lot of individuals with believing that it is very common and normal to have such instruments issued. Such high value contracts take long negotiations and percentages are discussed extensively. 1% is huge in financial services industry. 2% may represent a constrain in many cases due to the margins in sales, Taxes and so many other elements. <br /><br />If Banks charge 1 or 2% they are making as much money as they possibly can. There are no free lunches in this industry. Those who think of 1% as low, have no clue how the Bank and financial services industry work.<br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-17265583921298068632013-01-26T13:36:37.852+01:002013-01-26T13:36:37.852+01:00Hello Ahmed,
better pay by ICBPO instead of MT103...Hello Ahmed,<br /><br />better pay by ICBPO instead of MT103 as buyer´s bank transfers the money only after verification and authentication and receipt of the BG<br /><br />CharlesAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-18728098789214089872012-05-25T22:07:06.313+02:002012-05-25T22:07:06.313+02:00In reality, a bank would not extend a guarantee un...In reality, a bank would not extend a guarantee unless the principal had, in return, the assets to cover the bank's potential exposure. Thus, in this way it can be seen that the bank guarantee has the effect of securing the existing assets of the principal for the benefit of the beneficiary, but in a more liquid and accessible formrent guaranteeshttp://www.chj-suretybonds.com/products/rent-guarantees/noreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-81111363926093090422011-09-03T13:12:03.248+02:002011-09-03T13:12:03.248+02:00And so does a knowledgeable University professor k...And so does a knowledgeable University professor kindly shed some light for those seeking truths through the oceans of information on-line..<br /><br />Thank you, professor!<br /><br />Your insight shared is very much appreciated.<br /><br />I really wish you all the very best in your work in the finance world and may someday cross paths with you to say thank you in person.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-20599977809931652462010-11-16T16:32:08.561+01:002010-11-16T16:32:08.561+01:00Can you please explain this...?
If the Bank issue...Can you please explain this...?<br /><br />If the Bank issues a Fresh Cut BG for Client "A" with only 50% margin (for example, basically at a discount to face value); and subsequent sales put it into the hand of the last buyer who bought it at say 80% of the face value who holds it to maturity and redeems it at the bank; then the bank is forced to pay the full face value of 100%.<br /><br />So why would a bank issue something at 50% and redeem it at 100%? The banks are not in business of making losses.<br /><br />Please explainAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-2233894571753666452010-06-06T11:00:07.592+02:002010-06-06T11:00:07.592+02:00I think Peter got his own fresh cut BG and is reti...I think Peter got his own fresh cut BG and is retired now. enjoying his life!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-29914382457719066802010-05-12T08:03:29.963+02:002010-05-12T08:03:29.963+02:00Has Part 3 materialized yet???Has Part 3 materialized yet???Anonymoushttps://www.blogger.com/profile/04475321904232183669noreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-35186553742713145862009-03-13T15:23:00.000+01:002009-03-13T15:23:00.000+01:00Eric,Your knowledge of the financial instruments h...Eric,<BR/>Your knowledge of the financial instruments has been very helpful and I look forward to Part 3.Unknownhttps://www.blogger.com/profile/14122692481802426759noreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-28049593266648076802008-12-11T14:10:00.000+01:002008-12-11T14:10:00.000+01:00Dear Sir,I agree with you when you wrote that: "Th...Dear Sir,<BR/><BR/>I agree with you when you wrote that: "The MT-103 is used to send a conditional SWIFT transfer of cash funds used for fresh cut bank guarantees. Hence settlement of payments for Bank Guarantees must be transacted through NON-Euroclear Delivery Versus Payment (DVP) procedures agreed in advance by transacting parties."<BR/><BR/>What I would like to know is how does the client, who pays these services with MT 103, be assured that the Provider of the BG will refund his money if the Provider cannot deliver the Instrument by SWIFT MT760 to the client's Banker within 72 hours of confirmation of client's payment of the charges my MT103.?<BR/><BR/>What can the client do? <BR/>Any recourse?<BR/><BR/>Thanking you advance for your clarification.<BR/><BR/>Ahmedpageshttps://www.blogger.com/profile/04271319090619506542noreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-35301126622688225162008-09-27T07:30:00.000+02:002008-09-27T07:30:00.000+02:00Where can I find part 3 ?Where can I find part 3 ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2208442994581866623.post-26263146925842184232008-03-26T14:53:00.000+01:002008-03-26T14:53:00.000+01:00Is a "Proof of Funds" letter considered a BG? Is ...Is a "Proof of Funds" letter considered a BG? Is it customary for a client to lease a POF? Once leased could this POF (cash value) be moved to another financial institution given the financial institution would provide a guarantee return of capital via issuing a Letter of Credit say in the amount of 108%. All institutions being at least AA rated. Thank you.Anonymousnoreply@blogger.com