What is a prime bank instrument?
A. The term “prime bank instrument” refers to any private, insured debenture (or debt instrument) issued by any of 100 of the top global banking companies in the world (which are also known as “prime banks”). Prime bank instruments include prime bank notes, roll programs, international certificates of deposit, stand-by letters of credit, ICC 3039 and 3034 instruments, and other high-yield investment programs. While the purchases and sales of prime bank instruments occur primarily between European banks, several larger domestic banks and banks in Hong Kong, Malaysia, and Japan trade prime bank instruments among themselves. Because we buy and resell these instruments on a quick turnover basis, we can earn staggering returns for our clients, especially if you reinvest your dividends.
Related Questions
- rate loan is defined at 2% below Prime and very low-rate loan is defined at 4% below prime. What is the credit for a bank that makes a loan that is between 2 and 4% below prime?
- Why does the Bank need a new instrument? Isn’t the Bank already supporting results-based lending through existing instruments?
- What is a prime bank instrument?
