The Alternative Investments of most Prominent Investors in the world.

Many Sophisticated and Accredited Investors turn to Alternative Investments, as a tool to reduce risks, reduce volatility and increase the potential return. Most experienced HNWI (High Net Worth Individuals) Investors understand the importance of incorporating Alternative Assets into their investment portfolio. In fact, if a decade ago, the question at hand was whether it was worthwhile to engage in Alternative Investments at all, now the new questions arise - such as what is the appropriate exposure risk rate for these investments, and how the fund secure the funds, and what are the underlying assets in which it is worth investing. In search of answers to these questions, it is worth looking at Large and Prominent Investors (HNWI) worldwide and examining what their approach to Alternative Investments is. A good example is Yale University, which as of the end of 2020, held a $31 Billion Investment Portfolio. "According to Publications, Yale's Portfolio has been considered the best of its kind among colleges and...
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Is the emotional aspect activated in Alternative Investments?

Is the emotional aspect activated in investments and with an emphasis on Alternative Investments? Last week in a meeting with an HNWI investor, who has extensive experience in the capital market, who has already made an impressive exit, the conversation came up about the no sleep points while investments, his recommendation to his friends and acquaintances is to adjust their investments up to no sleep point. If the investment causes them not to sleep at night it is not right for them. The truth is I agree with him, 15 years ago when I was a beginning as Forex trader, an intraday trader, in a short time it hit the concentration in the real business Insurance risk management, lack of sleep while moving I changed strategy, from 5-minute trades to an hour and 4-hour planning, Using the long-term mechanisms, I entered to the last position with a stop-loss at the end of the 4-hour trajectory, in addition, gave an order at each...
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What is a better way to leverage funds? SBLC vs Debt

What is a better way to leverage funds? SBLC vs Debt

Let’s start with Financial Leverage Definition: Financial Leverage is the use of debt (borrowed capital) results from using as a funding source when investing to expand the company's asset base and generate returns on risk capital. Financial Leverage is an alternative investment strategy of utilizing Debt borrowed funds specifically, the use of various financial instruments to increase the potential return of an investment. Financial Leverage can also refer to the amount of debt a company uses to finance assets. The financial leverage ratio is one of several financial measurement analyses that calculate the risk of how much capital comes in the form of debt or assesses the ability of a company to meet its financial obligations. How Financial Leverage Works: When purchasing assets, four main options are available to the company for financing: using equity, debt, leases, obtain IPO's. Besides equity, the rest of the options involve costs that should be lower than the income that the company expects to earn from the asset/project. The...
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Certificate of Deposit vs Bond Certificate, what is better?

What is a Certificate of Deposit (CD)? A certificate of deposit (CD) is a type of savings product offered by commercial banks and credit unions that provides a higher interest rate associated with regular savings deposit accounts and in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time. The CDs are insured "money in the bank" and thus, virtually risk-free. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. What is an RMG - Bond Certificate? A Bond Certificate of deposit (BCD) is a type of alternative investment savings product offered by R.M.G Capital Group that provides a high coupon rate and in exchange for the customer agreeing to leave a deposit in an escrow account untouched for a predetermined period of time, with an option to exit every 30 banking days after the first 60 banking days. The Bond Certificate is insured "money...
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Why raising equity for projects fails?

Establishing a new project => learn more If you are an Entrepreneur or Developer, one of the required skills is deep knowledge in finance, and economy in addition to the other skills required for the project. Moreover, surround yourself with the right counselors. The developer company from Chicago, the project is a commercial combination of luxury hotels and residences in one of the coveted areas. The client request for licensing Standby Letter of Credit (SBLC) 100M USD, in order to be qualify, the client needs to provide BCL from his bank, therefore, the client submit a request to the Bank - credit committee to issue BCL that includes payment of fees 13% and undertake to return the SBLC 15 days before maturity. His bank refused. Why did the bank refuse?  What is the type of project? Why you need SBLC? Who is your adviser? The client answer, we are Real Estate Developers, our project about 200M USD, the bank give us approval for Senior debt 150M USD, so we...
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Guarantees and Surety Bonds

Every Guarantee/Surety Bond must be carefully examined to determine its legal significance and viability. Guarantees and Surety Bonds By issuing a guarantee/surety bond, the bank or the insurance acts as the guarantor for an obligation owed by the debtor. What these two instruments have in common is the bank’s/insurance’s promise to stand in for the payment of a debt or performance of service should the debtor fail to fulfill his or her contractual obligations. With this promise, the bank/insurance undertakes to pay a maximum specified amount when the conditions of the guarantee/surety bond are met. Difference between a Guarantee and a Surety Bond Guarantee A guarantee is a distinct promise to pay and is not dependent on the principal obligation. The guarantor (the bank) may not raise any objections or defenses based on the underlying transaction. This means the guarantor pays upon the first written demand (claim) on the part of the beneficiary, i.e. on the presentation of the confirmation specified in the guarantee text...
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