System and Method for High-Yield Investment Returns in Riskless-Principal Interest Rate/Yield Arbitrage

• US 20080262956A1
• Filed: 04/20/2005
• Published: 10/23/2008
• Est. Priority Date: 04/20/2004
• 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:
  US11/578,888
• Publication Number:
  US 20080262956A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A multi-participant financial transaction with no downside risks that results in a net profit for all participants (FIG. 2) when the transaction is accomplished according to certain required steps, including the step of having simultaneously closings in escrow. A multi-step approach to issuing and selling custom-designed, specially engineered and underwritten securities or bank instruments is also described.

Claims

1. A method of performing a multi-participant financial transaction that includes a lender and that will result in a net profit for all participants, comprising:

acquiring and forfaiting an investment portfolio formed from plural financial instruments via a simultaneous escrow closing, thereby making a riskless-principal transaction wherein the refinancing proceeds are exchanged against delivery of all rights, title and interest to the investment portfolio to the lender.

2. A method of performing an investment cycle with multiple participants that will result in a net profit for all participants, comprising:

underwriting an investment portfolio formed from plural financial instruments;

purchasing the investment portfolio as part of a simultaneous escrow closing that requires plural closing documents and exchanging simultaneously all closing documents;

aborting the simultaneous escrow closing in the event the simultaneous escrow closing does not occur within a preselected time, thus eliminating any and all transaction risks for all participants;

exercising a call option, in escrow; and

choosing a simultaneous-investment-portfolio-refinancing mechanism that functions in escrow and includes an exit strategy substep chosen from the group consisting of the following substeps;

performing a defeased refinancing of the investment portfolio;

forfaiting the financial instruments in the investment portfolio at a price based upon the relationship of the income stream of the instruments to their present value at a yield-to-maturity desirable to a third-party buyer;

selling the investment portfolio to one of the issuers of the financial instruments;

or

combinations of at least two of the substeps.

3. The method of claim 2, including the step of repeating the investment cycle recited in claim 2.