If you're in the historical bond business, you know full well that deals are hard to come by, especially when you want to sell a high-end bond. I have come to know more than fifty brokers, perhaps five real sellers, and just two real buyers. When I say "real," I mean someone with capacity to close a deal. It's one thing to have a lot of enthusiasm for the transaction and something else to have the capacity to do it. The real buyers I know - one in the Western U.S. and the other in New York - don't just talk, they negotiate and close. Buyers from Europe are non-existent as far as I know. Beware of brokers who try to sell your bonds in Europe. If they do, you'll get pennies for them. Beware of brokers who ask for complete packages. That's a sign someone will use your bonds for collateral for a bridge loan while you sit there waiting to be paid. It's definitely best to do these deals attorney-to-attorney or bank-to-bank. As far as brokers go, I would say they are all very hopeful - some are outright dishonest - some are misinformed - but very, very few are well-connected. A word to the wise.
Tuesday, October 22, 2013
Saturday, October 19, 2013
The popular bond of the moment seems to be the Liberty 10000. Bond buyers are paying really good money for it. A close friend recently made an offer on one (which I located for him) but was rebuffed. His seven figure offer was just too low. When you get to discussing more than seven figures for one of these (or any other) bonds, one of the problems is that buyers and sellers get quite intransigent. Of course, that's no way to make deals. If you want to sell, shove your ego to one side, even if you don't need the money. If you are a buyer, be careful of anyone offering a Liberty 10000 because they are more rare than a Stradivarius violin. You are under no obligation, of course, but you may contact me at pronetoviolins at gmail dotcom if you have a bond and are seeking a real buyer. We DO NOT deal in packages - only face-to-face transactions. Those are the best deals and the only ones that work. Have a great day.
Monday, July 15, 2013
We got very close to selling 20 Petchili bonds last month - so close that we almost started thinking about how we would spend the substantial commissions. Well, as usual, the deal didn't happen because the buyers were in one place and the sellers were in another and the two could never agree to trust each other enough to meet halfway. On the other hand, so many sellers have gone to Zurich to sell their bonds for millions and even billions - with contracts in hand and bank invitations as well - then they have been let down BIG TIME. Who would want to go through that again? I know one seller who has had his packages with a strong and well-connected broker for two months and NOTHING has happened and, by all indications, NOTHING will happen. He is now to the point that if someone shows up with 70 thousand in cash, he will sell, even though he has been promised 50 million per bond. A bird in the hand is better than two in the bush, as they say.
Wednesday, January 2, 2013
This is my first 2013 post here but it is about nothing. It is ONLY for the record - read it at your own risk.
Monday, December 31, 2012
In keeping with my Realist (not necessarily Pessimist) view of things, let me predict what might happen in the U.S. in the near future - very possibly in or by 2014. First, the U.S. Federal Government will run up an unimaginably huge deficit, its credit rating will plummet, and the dollar will become nearly worthless. The government will then, of course, be unable to meet its obligations as far as pensions and Social Security payments. China, India, and Europe will come to the rescue by buying American companies, industries, and businesses and hiring Americans to run them and work in them. The U.S. will have to sell U.S. territory as well in order to survive. The American Southwest will again become part of Mexico. As a result of several natural catastrophes, American food production will shrink to well below minimal subsistence levels. Millions will starve. Violence, political chaos, and social desperation will prevail in every American city. Millions will die from simple diseases. In return for total disarmament, Russia will help out with the food shortages. America's economic and military presence all over the globe will be scaled back to zero. This will plunge the entire world into a new dark ages for a short while. Europe will then take control of all Middle Eastern countries and will become dominant among world nations once again. Prosperity will have disappeared but the world will have peace and security. I might, of course, be way off the mark. Pay no attention to me.
Saturday, December 15, 2012
Twenty children and a few adults were murdered yesterday in Newtown, Connecticut. The school Principal was among the victims. The violence occurred in Sandy Hook Elementary School at around 9:40 in the morning. Now, my point is this: when the Principal got up that morning - let's say around 6:00 a.m. - she had absolutely no idea that she would die later that morning. No clue whatsoever. In fact, even ten minutes before she died, she knew nothing about what was about to happen. Neither did anyone else who got shot and died. But God knew. He knows everything, even before it happens. God chose not to intervene. My question - and I keep asking this - why didn't God save them? God is all-powerful and saving the victims would have been absolutely no problem for Him. Why did He not save them? Anyone know?
Thursday, December 13, 2012
We came close to selling a 4 Head bond yesterday. The only problem? The seller wouldn't show the bond. Is that impractical or what? Our offer: 500 million USD. Why do bond owners say they want to sell and then not show up? The only reason I can think of is this: they don't really have the bond, even if all the documentation shows they do.