Historical Bonds--Mexican, Chinese, German, LTNs...

The market for historical bonds is a confusing one, filled with misinformation and distrust.  On the one hand you have sellers who have been searching for real buyers, sometimes for years, only to be disappointed time after time when the buyer turns out not to be real.

On the other hand you have buyers who are looking for real bonds only to find out that the "owners" don't actually own the bond, or the bond is a counterfeit, or has been stolen, etc.  Our goal is to provide the best possible information gathered from real buyers to help real sellers understand the process for selling or monetizing their bonds.

REASONS WHY TRANSACTIONS DON'T CLOSE

Uncooperative Sellers--Unfortunately, most historical bond transactions are doomed from the start.  Many owners, having been burned by unscrupulous brokers who have defrauded them of money, or "shopped" their packages to multiple sources, have reached the point where they are unwilling to provide any information to anyone until they have spoken with an actual buyer or buyer's rep.  These transactions have little chance of ever closing because NO buyer or buyer's rep will speak with a seller until they have seen a full package--they simply don't have the time.

Multiple Packages and/or Multiple Owners-Often, in an attempt to find a real buyer, owners will place their packages with multiple brokers at the same time.  This is known as "shopping" a package and is a guaranteed method for getting your package rejected.  It is not unusual for a buyer to receive the same bond package on Monday, then again on Tuesday and Wednesday--even with different individuals listed as the "owners". If an owner is unhappy with the current broker, send them a Cease and Desist letter before forwarding the package to someone else.

Misunderstanding the Buyer/Seller Relationship--Many owners often try to dictate the relationship with the buyers. They feel that since they own the bonds and the buyers are somehow "desperate" to buy their bonds, they can dictate the terms and conditions under which the transaction will occur.  Nothing could be further from the truth.  As is true with buyers in every other industry, there is an industry-standard way of doing business that is dictated and controlled by the buyers.  After all, at the end of the day, they are the ones writing the check.

KEYS TO A SUCCESSFUL TRANSACTION

1. A complete package that includes: Know Your Client (KYC) forms, enlarged passport photograph; attorney attestation and "Proof of Life"--a picture of the bond and owner's passport on a current newspaper with the date and bond folio number clearly visible.

2. A well documented history of the bond ownership going back as far as possible, i.e., 3-5 years or more, if possible.  Tracing the history of ownership will make a huge difference, not only in authenticating the bond, but increasing the value and price of the bond--often many times over.

3. Tell the truth.  As obvious as it may seem, don't embellish the story.  State what you know in as accurate and factual a manner as possible.  If you are not the bond owner but simply the bond holder state that.  You will be surprised by how much buyers will be willing to work with you if you are willing to tell the truth about every aspect of your transaction.

Want us to review your bond? Click here to download our brief Historical Bond Questionnaire.

Contact: For more information, contact James Robinson at (602) 896-9000.