Method of managing financial instruments, equipment lease derivatives and other collateral instruments, data architecture, application and process program

• US 20100250464A1
• Filed: 02/01/2010
• Published: 09/30/2010
• Est. Priority Date: 06/19/2001
• Status: Active Grant

• Current Assignee: Digitech Information Systems Incorporated
• Original Assignee: Digitech Information Systems Incorporated
• Inventors: Beverly, Robert E. IV, Gulati, Deepak
• Granted Patent: US 8,489,491 B2
• Time in Patent Office: Days
• US Class Current: 705/36.R
• 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 computer-implemented process ad methodology that selects collateral instruments such as equipment leases, using mathematical models, based on selection criteria, risk-reward relationships, and maturity needs resulting in the creation of new financial instrument derivatives. These new derivatives allow for creation of secured private equity, public equity, mutual funds and venture capital funds where the investors'"'"' principal is safeguarded against loss regardless of the performance of the investments being made. A two-tier investment structure is created whereby the principal amounts from the fund are invested in specially identified high yield vehicles such as residual equipment leases with high yields over certain maturities. The high yield cash flow only is then invested in higher risk investments such as venture capital start-ups companies.

Claims

1-18. -18. (canceled)

19. A method for selecting collateral instruments to optimize an investment portfolio comprising the steps of:

a. receiving data regarding a collateral instrument;

b. calculating by computer a rate of return of investing in said collateral instrument by manipulating the received data;

c. selecting a collateral instrument based on the rate of return being greater or equal to a predetermined value; and

d. using the selected collateral instrument to create collateral instrument backed financial instrument derivatives and optimize the investment portfolio.

20. The method of claim 19 wherein the collateral instrument comprises a financial instrument that has a principal component and an interest component and provides a calculated low risk and a calculated high cash flow.

21. The method of claim 19 wherein the collateral instrument is selected from the group consisting of equipment leases, bonds, treasury bills, preferred stock, asset backed securities, securities credit card debt and mortgages.

22. The method of claim 19 wherein the predetermined value is dependent on an investment grade rating of a type of investment vehicle.

23. The method of claim 22 wherein the type of investment vehicle is one of venture capital, private equity, public equity and/or debt instruments.

24. The method of claim 19 wherein a plurality of collateral instruments are selected to create collateral backed financial instrument derivatives for securing high risk investments forming a two tier investment structure.

25. The method of claim 24 wherein the two tier investment structure is applied to a venture capital environment, private equity, public equity and/or debt instruments.

26. The method of claim 19 wherein a plurality of collateral instruments are selected to create a NASDAQ type trading exchange.

27. An apparatus for facilitating a selection of collateral instruments to optimize an investment portfolio comprising:

a storage device;

a processor connected to the storage device, the storage device storing a program for controlling the processor, wherein the processor operates with the program for receiving data regarding a collateral instrument;

calculating by computer a rate of return of investing in said collateral instrument by manipulating the received data;

selecting a collateral instrument based on the rate of return being greater or equal to a predetermined value; and

using the selected collateral instrument to create collateral instrument backed financial instrument derivatives and optimize the investment portfolio.

28. The apparatus of claim 27 wherein the collateral instrument comprises a financial instrument that has a principal component and an interest component and provides a calculated low risk and a calculated high cash flow.

29. The apparatus of claim 27 wherein the collateral instrument is selected from the group consisting of equipment leases, bonds, treasury bills, preferred stock, asset backed securities, securities credit card debt and mortgages.

30. The apparatus of claim 27 wherein the predetermined value is dependent on an investment grade rating of a type of investment vehicle.

31. The apparatus of claim 30 wherein the type of investment vehicle is one of venture capital, private equity, public equity and/or debt instruments.

32. The apparatus of claim 27 wherein a plurality of collateral instruments are selected to create collateral backed financial instrument derivatives for securing high risk investments forming a two tier investment structure.

33. The apparatus of claim 32 wherein the two tier investment structure is applied to a venture capital environment, private equity, public equity and/or debt instruments.

34. The apparatus of claim 27 wherein a plurality of collateral instruments are selected to create a NASDAQ type trading exchange.