Synthetic funds having structured notes
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0 Petitions
Accused Products
Abstract
The present invention relates to synthetic funds for purchase by investors. A structured note is structured to provide customized equity returns/exposure. Terms of each structured note may be specified by the purchaser and the structured notes may be unsecured liabilities of the obligor, e.g., there are no underlying assets upon which the structure note is based. Thus, there will be no limits on the use of structured note proceeds and management of assets and liabilities will be left entirely to the obligor'"'"'s discretion. Structured note payment obligations may be related to the performance of an objective valuation, but structured note holders will depend on the good credit of the obligor for payment.
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Citations
138 Claims
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1-80. -80. (canceled)
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81. A process for creating and issuing a synthetic fund comprising:
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receiving a request to purchase at least one structured note, where the request comprises;
an amount of the at least one structured note; and
at least one objective valuation measure of the at least one structured note;
generating the at least one structured note based on the request;
wherein the at least one structured note represents a portfolio of one or more assets with market exposures wherein the market exposures are objectively valued,receiving payment for the at least one structured note; and
issuing the at least one structured note. - View Dependent Claims (82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108)
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109. A synthetic fund for purchase as a financial product comprising:
a structured note issued by an obligor, where the structured note comprises an amount of the at least one structured note; and
at least one objective valuation measure of the at least one structured note;
wherein the at least one structured note represents a portfolio of one or more assets with market exposures wherein the market exposures are objectively valued.- View Dependent Claims (110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136)
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137. A process for creating and issuing a synthetic fund comprising:
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receiving a request to purchase at least one structured note, where the request comprises;
an amount of the at least one structured note; and
at least one objective valuation measure of the at least one structured note;
generating the at least one structured note based on the request;
wherein the at least one structured note represents a portfolio of one or more assets with market exposures wherein the market exposures are objectively valued, wherein the portfolio relates to market exposures of the at least one structured note or to market risk exposures of an obligor;
receiving payment for the at least one structured note;
issuing the at least one structured note;
modifying an investment amount associated with the at least one structured note, as desired by a note holder;
wherein an underlying asset of the least one structured note comprises one or more passive assets;
wherein one or more parameters associated with the at least one structured note is selected for customizing one or more of associated risk and return characteristics of the at least one structured note;
wherein performance of the at least one structured note is customized by an obligor without acquiring a direct interest in a corresponding underlying asset;
providing an ability by an obligor to short performance of the at least one structured note;
providing an ability for a note holder to leverage or short performance of at least one of a mutual fund, hedge fund, individual equities, bond, commodities, fund-of-funds or other underlying asset, wherein the asset is passive or active;
providing an ability to an obligor to buy and manage at least one asset of the portfolio differently from an underlying asset market exposure sold in the at least one structured note;
providing an ability to an obligor to establish a hedge position for the at least one structured note;
wherein the underlying asset comprises a customized fund-of-funds, an aggregation of underlying assets, such that a percentage contribution of the underlying asset or other assets are different from the referenced fund-of-fund, or other referenced aggregation of underlying assets.
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138. A synthetic fund for purchase as a financial product comprising:
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a structured note issued by an obligor, where the structured note comprises an amount of the at least one structured note; and
at least one objective valuation measure of the at least one structured note;
wherein the at least one structured note represents a portfolio of one or more assets with market exposures wherein the market exposures are objectively valued;
wherein the portfolio relates to market exposures of the at least one structured note or to market risk exposures of an obligor;
wherein an investment amount associated with the at least one structured note is modified, as desired by a note holder;
wherein an underlying asset of the least one structured note comprises one or more passive assets;
wherein one or more parameters associated with the at least one structured note is selected for customizing one or more of associated risk and return characteristics of the at least one structured note;
wherein performance of the at least one structured note is customized by an obligor without acquiring a direct interest in a corresponding underlying asset;
wherein the obligor has the ability to leverage or short performance of the at least one structured note;
wherein a note holder has the ability to short performance of at least one of a mutual fund, hedge fund, individual equities, bond, commodities, fund-of-funds or other underlying asset, wherein the asset is passive or active;
wherein the obligor has the ability to buy and manage at least one asset of the portfolio differently from an underlying asset market exposure sold in the at least one structured note;
wherein the obligor has the ability to establish a hedge position for the at least one structured note;
wherein the underlying asset comprises a customized fund-of-funds, an aggregation of underlying assets, such that a percentage contribution of the underlying asset or other assets are different from the referenced fund-of-fund, or other referenced aggregation of underlying assets.
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Specification