Private placement programs, also known as "high-yield investment programs", are private (non-governmental) investment programs based on the purchase or sale of bank financial instruments. In most cases, the main tools are MTN. These instruments are purchased at a large discount from their strike price, and then resold on the secondary market at a higher price. The difference between the sale price and the purchase price is the investor's profit. These programs are offered to investors with a high credit rating and can only be carried out by qualified traders licensed to conduct such transactions.
The peculiarity of these programs is that most of the proceeds usually go to humanitarian purposes, as well as to finance larger corporate projects.
Thus, each institution has priority in this type of transactions. In fact, private placement programs are little known to the general public, and only a very small group of investors with significant funds or banking instruments have access to them.