Next Level Holdings Launches Insured Annuity Alternative for Fixed-Income Investors
Miami, Florida--(Newsfile Corp. - February 21, 2023) - Next Level Holdings LLC announced the launch of its Principal & Interest Protected Fixed Income Note™. This unique investment includes a dedicated insurance policy to provide a new higher-earning option for retirement investors.
To make this possible, the company employs a unique strategy called arbitrage in a pioneering manner.
Need for More Retirement Investment Options
According to the Financial Times, simultaneous drops in the stock and bond market in 2022 resulted in investor losses of over 30 trillion dollars. These conditions sent investors fleeing to the safety of annuities at a record pace. But according to Paul Regan, Next Level's CEO and Fund Manager, "Annuities usually yield around 4%, which is lower than the recent inflation rate of 6.4%. That means those buying annuities today might be locking in future losses of purchasing power. That's why we developed a better-yielding alternative using arbitrage investment strategies."
"Arbitrage is nothing new," says Regan. These strategies have been used for decades, but usually on a smaller scale. With arbitrage, the fund manager looks for opportunities to exploit price differences for the same commodity in different markets. For example, due to market inefficiencies, the price of gold may vary slightly in Asia from its equivalent price in North America. The manager simultaneously buys and sells the commodity and pockets the difference. With no directional bet and a holding period of only seconds, investment risks are minimized.
One cannot necessarily predict when these price differences will occur or how frequently. To provide more opportunities, Regan developed a way to generate arbitrage investment opportunities on demand.
Profiting From Inefficient Markets
"Having been in commodities for decades, I knew that many industries have traditionally been dominated by corporate giants. For example, with gold mining, there are many smaller family-run mines in South America that struggle to distribute their product."
Regan negotiated a series of standing agreements to buy supplies from these smaller establishments at 97% of the market (spot) price. Next Level then sells the product at the spot price and retains the 3% as profit, less shipping and insurance costs. "Our suppliers are happy to sell for a 3% discount with virtually no marketing costs and hassles. At the same time, this arrangement provides Next Level with a steady stream of profitable transactions."
An Investment Strategy Eligible for Insurance
According to Regan, "Our Principal & Interest Protected Fixed Income Notes™ provide returns of 24% per year or greater. While these returns are high compared with annuities, these returns are not unusual in the alternative investment space. However, alternative investments usually carry substantial risk. "
To mitigate risk even further, Regan came up with the idea of approaching insurers.
"Since our strategy is already a low risk, I approached insurers to see their interest level. While it was extremely time-consuming to go through the due diligence process, it was worth it, as the insurers I approached ultimately agreed to insure the product."
The insurers involved are all B++ or higher rated by A.M. Best, which was critical for Regan. "We wanted only high-quality insurance, so it was meaningful to investors."
An IRA-Eligible Inflation-Fighting Investment
The firm has partnered with two custodians so individuals can invest in these notes through a self-directed IRA. Regan comments on the importance of this. "With higher yields, being able to place these in a tax-advantaged vehicle is important. So we're proud to offer this capability through two well-established custodians."
About Next Level Holdings
Next Level Holdings, LLC, is a multinational holding company developing risk-managed investment strategies that help people invest safely in all market conditions. Its arbitrage-based approach focuses on physical commodities, including gold, lumber, timber, and coffee. Visit https://www.nextlevelholdings.co/ for more information.
Paul Regan, CEO, Next Level Holdings, LLC
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