Without Medium Term Notes, the potential of utilizing them in Private Trading and the profits derived from such, many of the participants of these programs would never launch over the first tier with regards to the programs they are included in.

Typical Minimum Investment Requirement: Mid-Term Note Trading and investing is not easily accessible to the typical high-net worth investor or well capitalized corporation unless they first know these types of programs exist and then are either introduced to the trading platform from a referring client or through a series of referral educational sites where the client can thereafter request admission. Most Trade Programs typically will accept investors who are willing to commit as little as $25 million to have blocked for the purposes of leverage. Although some Trade Managers have dropped their minimums to only $250K with coupled by a series of A,B,C programs to ramp up the clients capital to higher level trades.

Fund of Funds: A fund of funds holds the leveraged funds of many private partnerships that invest in private trades. It provides a way for firms and individual participants to increase cost effectiveness and thereby reduce their minimum investment requirement. Since a fund of funds is leveraging against those original funds, sometimes up to 20 to 50 times, the accumulated return for that specific funds of funds becomes much more lucrative.

In addition, because of its size and diversification, a fund of funds has the potential to offer greater returns than you might experience with an individual MTN Trade Program. This only holds true to those Programs that are under the $100 million dollar level though since most times the lesser amounts are leveraged through funds of funds or equivalent means.

The main disadvantage, if it could be considered such, is that there is an additional layer of fees paid to the fund of funds manager. Though typically $100 million and up will roll out the welcome mat, investors can on occasion, participate with $250,000 - $10 million to the respective fund of funds manager. For those smaller amounts under $10 million, the platform manager may not let you participate unless you are an accredited investor with a net worth between $1.5 million to $5 million.

Is it worth the time and consideration? There are several key risks in any type of investing since you essentially, with any investment, can guarantee a return (except for low yielding T-Bills, etc.) Private Trading is no exception. As mentioned earlier, the fees of Private Trade Programs that cater to smaller investors can be higher than you would normally expect with conventional investments, such as mutual funds. With a pre-established historical return rate on these smaller (less than $100M) funds may be in the double to triple digits as reflected in previous scenarios. The promulgation of these fees are irrespective and of little consequence to the investor although many investors feel that they deserve more, do essentially doing very little.

In a market as volatile as the one we currently face, it is much harder to find streamlined programs that offer little risk. Transferring of investors' funds is not evidenced in these Private Trade Programs that are at or above $10 million dollars. A block is placed on the client's funds within their account for the duration of the trading period. Hence, the safety the client experiences remains secure with the leveraged program they enter into.

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