Historical Bonds Myth or Fact

We have many requests for information for members of The Joker Brokers.   We want to set the record straight with Historical and Mexican Bonds.

Historical bonds including the Mexican Bonds are worthless as securities.  For example, none of the historical United States railroad bonds are payable by today's successor railroads such as Norfolk Southern and Union Pacific. Instead, historical and Mexican bonds only have value as collector's items. A Collectors Guide has the value anywhere from $25 to $700 each.  Some of the Mexican Gold bonds can reach as high as 70,000 dollars.

A program for them?

The Mexican bonds are similar to the Gold Rush of the mid 1800's.  However, the Mexican bonds are more myth than fact:  White doves, blue doves, red doves, pink ladies, vintage gold-backed bearer bonds issued by the Mexican government with a supposed booming trade in historical debt instruments which are fueled by rumors and representations that the (allegedly authentic) certificates can somehow still be used as securities in sophisticated "trading programs" (sic) through a global network of buyers ,sellers, brokers, jokers, and scammers, even legitimate collectors and investors are selling hope.  Although you have claims there are going into a program because they are backed by Gold, they are not!

It is important to take a look at the facts where most joker brokers in this community are not connected to a program which they say they are, no connection to authentic the bonds, saying the old historical bonds are on Euroclear, and the list goes on and on.  Some of the Mexican Bonds where posted on Ebay, an e-commerce site, for 900 dollars.

We recommend staying with the basics and using common sense.

Bank Guarantees Part Two

We at, The Joker Brokers are asked “What is a Bank Guarantee at 75 + 1?  BG’s are issued by a bank and in some instances approval by the World Bank, to ensure a loss against principal in a transaction.  How do you get a BG at 75 percent (discount) of face value?   We have a question to ask you.  Let’s be a little personal now.  How many of you have heard of anyone closing a Bank Guarantee deal at 75, 80, or any discount?  Truly be honest with yourself?  How many times do you believe a bank will wholesale money as described by joker brokers all over the internet?  We do not want to burst your bubble, but at the same time we do not want you to waste your time on a fruitless endeavor.

First of all BG’s do not come with isin numbers because they are not a public security.  They can be “parked”, not blocked (as some use) on the screen for authentication purposes and will come with an identifier in that instance.  Customer A has 100 million plus dollars in  Bank B or Top World Bank, which has a long, good, relationship.  Customer A needs a bank guarantee from Bank B for a certain transaction where the bank will need to know of “everything” about the transaction before issuing a bank guarantee on their behalf.  In ordinary folks terms, the bank will not issue a BG without knowing the customer, the proposed transaction, and not having the funds in the account.

Therefore, if customer A needs 100 million dollars to have the BG issued how do you get a discounted BG?  Let’s take a look at the numbers.  Customer A had to have 100 million dollars in his account to get the BG issued in the first place.  If Buyer B comes along and says I would like to buy your BG at 80 million dollars, why would the first customer (A) do such?  They wouldn’t.  BG’s are not traded like bonds.  This is where the confusion takes place.  BG’s come with an owner and if someone would like to borrow against it for a period of time they have to pay for borrowing the instrument.  Where is the discount?  In our previous paragraph Customer A is not going to discount the BG because he/she would lose money.  Let use the example of the bank.  The bank which issues the BG would give you the guarantee, (remember, this is a bank guarantee), that you can buy at 80 million dollars, or 80 percent of face, and to get in return one year later about 20 million dollars in revenue for doing what?

The basics of a BG.  A bank does not issue them at a discount.  We do not care what anyone says.  A bank will issue a BG based on criteria met for a proposed transaction where the customer of the bank will have met the requirements for the bank to issue a bank guarantee.  In which, a bank will not wholesale you money for no reason.  A bank would not give you a BG at a discount because you would be operating at the bank level and this is not going to happen, which is contrary to broker believe.

With that said.  If you can get a BG at 80 percent of face from a bank we will use this as an example:  Said bank issued you a BG at 80 million dollars, but the instrument will net you 20 million dollars at the end of the term or maturity.  The bank, did you a favor by (1) issuing you a BG at a discount, and (2) reap 20 million dollars in benefits.  And we say for what?  This is not common sense and defies logic.

Bank Guarantees Part One

Bank Guarantees are issued from a bank for surety against loss in a future or proposed transaction.  In essence, what a BG does is guarantee a payment on behalf of the owner of the instrument.

How do you get a BG at a discount?  Let’s start with the basics of issuing a BG.  To receive a BG from a top world bank you have to have the financial capability or the funds in the account to receive it.  What that means is you need 100 million dollars in the bank to received the 100 million dollar BG.  Just because you have the said amount of funds in the bank does not mean you are going to receive it.  Most of the clientle using BG’s have had a long term relationship with their bank and other business transactions in which the bank will feel comfortable issuing the BG.  What the instrument is used for is a performance bond of sort in bulk commodities and real estate transactions.

With all of that said, how do you get a BG at a discount?  We have heard story after story of buyer so and so wanting a BG at 80 percent of face value?  Why would a bank  or owner discount a one year instrument for a buyer to wholesale money to them?  The answer is – they wouldn’t.  If you took the numbers you would see how ridiculous this is; so what we are going to do for you in the next article?  We are going to show you the numbers and why no one is going to issue a discounted BG.

To learn more please visit The Joker Brokers