System and method for high-yield returns in riskless-principal interest rate/yield arbitrage

• US 20060010056A1
• Filed: 02/14/2005
• Published: 01/12/2006
• Est. Priority Date: 02/12/2004
• Status: Abandoned Application

• Current Assignee: Alain L De La Motte
• Original Assignee: Alain L De La Motte
• Inventors: De La Motte, Alain L.
• Application Number:
  US11/058,750
• Publication Number:
  US 20060010056A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system, method and strategy of investment can be executed in any currency and amount and, when constructed, can be executed and closed in certain steps to result in a pre-defined, guaranteed and quantifiable level of profitability for an investment without risk that the principal investment amount will be lost or depleted. The system, method and strategy also simultaneously guarantees the following results for all other transaction participants: (a) a pre-defined level of profit for the Investor and/or his Asset Manager (“Manager”) and the lender for the refinancing or discounting; (b) an option to call which when executed by the original issuer of the instruments will result in a profit for the original issuer (e.g. insurance companies, banks, brokerage firms, financial institutions, and/or corporations); (c) an exit strategy that allows each and every participant in the transaction to exit its original position without exposure to ongoing currency fluctuations, changes in interest rates and yields, or default by the issuers of financial products.

Claims

1. A method of investment for an investor who works with an escrow manager, comprising

underwriting plural financial products;

purchasing an investment portfolio that includes at least some of the plural financial products by making and closing a single transaction within a preselected time period;

aborting the transaction if it does not close in the pre-selected time period;

exercising a call option in escrow;

initiating a simultaneous investment portfolio refinancing mechanism facilitated by an escrow manager according to preselected exit-strategy options; and

generating profits for the investor and escrow manager.

2. The method of claim 1 wherein the steps make up an investment cycle and wherein the steps are repeated to make plural investment cycles that maximize investment returns via the compounding of profits achieved through each successive investment cycle.

3. The method of claim 1 wherein one of the financial products is repurchased by the issuer of that one of the financial products.