Foreign Government or Corporate Medium Term Notes (MTN's)

Foreign Government or Corporate Medium Term Notes (MTN's)

Medium Term Notes (MTN's) - "Cash" them in for real dollars or raise a "Credit Line".

Value conversion depends on many factors, some fixed, some floating such as:

Type of Instrument or Note (Issuing Body) - Government or Corporate Government Issued are the most desired.
Rating from issuing institution - Government, Bank, Security House, Private What Currency, US Dollars is always preferred, but others are also acceptable Currency Fluctuation, if not already in US dollars.
Ownership of MTNs - Corporate, Bank, Trust, Endowment, Pension Fund, Private, Other
Bank Policy Agent or Bank Holding Note(s)
Where MTNs are actually held - Security House, Bank Vault, Bank Safety Deposit Box, Licensed and Insured Agent, Trust, Other
Market Conditions
Security House, Bonding Agent, Underwriter, etc. - Rating, location, etc.
Client Anticipation of Return
Place Transaction Occurs

What is done with 'Cash' after conversion

This is becoming a paramount issue with banks and security houses converting the instrument, the preferred and acceptable method is to deposit a portion of the redeemed funds with the honoring bank or security house, usually not less than 50% for a period of not less than six (6) months. If with a security house the funds can be put into a money market or reinvested into other securities.

Hints

MTN's are a method or avenue of selling off 'Debt'.
MTN's are usually issued by a Government Entity.
MTN's can be issued by a Public Listed Corporation.
MTN's held by individuals are highly questioned by banks and trading houses throughout the world.
Often times, in this case, it may be easier to raise a 'Credit Line' than convert the instrument to CASH, especially if an individual is selling the MTNs.
Fluctuating World Market Conditions set the pace and determine the trading value, if any.
Usually most every instrument can be converted, however, some are just Not desirable Trading Instruments on the current World Market.
MTNs and T-Bills are one of the most sought after instruments.
Substantiated "Documentation' is needed for this type of transaction.

Important Notice

It is widely considered a trading rule that any securities are deemed NOT Tradable if they originate from a non recognized international public trading exchange. This applied to Any type of Security Note (stock, bond, mutual fund, trust, MTN, debentures, etc.).