A Nontraditional Investment You Need to Know About COMMODITY REPO DEFINED
There are many nontraditional ways to invest your money and to put it to work for you. One such method that offers low-risk returns is a commodity repo.
When it comes to sugar, the product is insured, and it is working capital for the sugar producers, which lowers investor risk. At the end of the term agreement, the seller buys back the sugar and then sells it on the open market. This allows them to pay the farmers while also earning profit. It’s a win-win for all involved parties. If you would like to participate in a commodity repo offer please contact your Personal Portfolio Manager to participate in the Jamaica Cane products Commodity Repo outlined below: JCPS 10.5% COMMODITY (REPO) REPURCHASE AGREEMENT Investment Type COMMODITY Vendor Purchaser Minimum Purchase Total Amount of Commodity for Sale Sale/Repurchase period Yield Currency Maturity Date Tax Insurance Offer Period Offer is based on Commodity Sale and Repurchase Agreement Sugar Jamaica Cane Products Sales (JCPS) Investors JA$5,000,000.00 JA$100,000,000.00 Five (5) months 10.5% p.a. JA$ February 2018 No tax withheld Commodity is insured September 4 – 15, 2017 First come, first served
The commodity repo, or repurchase agreement, has a lot in common with the traditional repo. Rather than securities, commodities are bought and sold. Commodities include metals, livestock, and agricultural products, such as coffee and sugar. One commodity repo that we recommend, for instance, is sugar. Generally, the “true sale” nature of commodity repo transactions (i.e. the transfer of title from one party to the other by way of sale, rather than the creation of a potentially unsecured loan obligation) is a key part of these structures. How does a commodity repo work? The sugar producer offers their sugar to a buyer or investor, and during the exchange, the seller agrees to buy back the sugar at a later date at a specified price. This date can vary and may be defined in the agreement, but it is generally short-term. It may be days, weeks, months, or longer. Additionally, the cost of buying back the sugar is higher than the selling price. The difference between the initial selling price and the repurchase price is comparable to accumulated interest. The buyer earns the difference in return. Commodity repos are ideal for investors who want to diversify their portfolios instead of tying up all their cash in long-term investments. Repos are generally fast, simple, and low risk, as commodities are always in demand.
TRIVIA 1. WHO WAS THE FIRST HUMAN IN SPACE?
TAKE A BREAK!
A) Yuri Gagarin B) Buzz Aldrin C) Sally Ride D) Neil Armstrong
2. WHAT IS THE LONGEST RIVER IN JAMAICA?
A) Rio Cobre B) Rio Minho C) White River D) Black River
4. WHAT IS THE OLDEST KNOWN VEGETABLE? A) Pea
3. HOW MANY OF SNOWWHITE’S SEVEN DWARVES HAVE BEARDS? A) Four B) Seven C) Six D) One
B) Eggplant C) Pumpkin D) Brussels sprouts
COMMODITY DIVERSIFY EDUCATION FISHING INVESTMENT JAMAICA JMMB MARKETS
MARLIN MONEY MONTEGOBAY NONTRADITIONAL PORTFOLIO
SUGAR SUNNY WEALTH
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(876) 704-3734
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