Method for investing yield restricted monies

• US 7,376,604 B1
• Filed: 12/27/2001
• Issued: 05/20/2008
• Est. Priority Date: 12/27/2001
• Status: Active Grant

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Butcher, George H.
• Primary Examiner(s): Dass, Harish T.
• Application Number:
  US10/034,419
• Time in Patent Office: 2,336 Days
• Field of Search: 705 35- 38, 705/1
• 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 40/03 Credit; Loans; Processing thereof
• 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

In one embodiment the present invention relates to a method for investing yield restricted monies including bond proceeds associated with at least one bond having a bond yield, wherein the bond proceeds achieve a return above the bond yield to which the bond proceeds would otherwise be restricted by regulation, comprising: obtaining the bond proceeds; and investing at least part of the bond proceeds in a tax-exempt inverse-floater financial instrument, wherein the inverse-floater financial instrument has a first rate of return which varies substantially inversely with regard to a second rate of return of a floater financial instrument. In another embodiment the present invention relates to a method for investing yield restricted monies including bond proceeds associated with a portfolio containing at least two bonds, wherein each of the bonds has a respective bond term and a respective bond yield, wherein the portfolio has a term overlapping at least the terms of each of the bonds, wherein an aggregate bond yield is formed of a combination of the yields of each of the bonds, and wherein the bond proceeds achieve an aggregate return, over the term of the portfolio, above the aggregate bond yield to which the bond proceeds would otherwise be restricted by regulation, comprising: obtaining the bond proceeds; and investing, for at least part of the term of a first one of the bonds contained in the portfolio, at least part of the bond proceeds in a tax-exempt inverse-floater financial instrument, wherein the inverse-floater financial instrument has a first rate of return which varies substantially inversely with regard to a second rate of return of a floater financial instrument.

Claims

1. A method for investing yield restricted monies, comprising:

obtaining bond proceeds associated with a portfolio containing at least two bonds, wherein the bond proceeds are from the issuance of the bonds by a bond issuer, wherein each of the bonds has a respective bond term and a respective bond yield, wherein the portfolio has a term overlapping at least the terms of each of the bonds, wherein an aggregate bond yield is formed of a combination of the yields of each of the bonds, and wherein the bond proceeds from the issuance of the bonds comprise at least part of the yield restricted monies; and

investing on the part of the bond issuer, for at least part of the term of a first one of the bonds contained in the portfolio, at least part of the bond proceeds from the issuance of the bonds in a tax-exempt inverse-floater financial instrument, wherein the inverse-floater financial instrument has a first rate of return which varies substantially inversely with regard to a second rate of return of a floater financial instrument;

wherein the bond proceeds from the issuance of the bonds achieve an aggregate return, over the term of the portfolio, above the aggregate bond yield to which the bond proceeds from the issuance of the bonds would otherwise be restricted by regulation.

2. The method of claim 1, wherein the term of the first one of the bonds in the portfolio differs from the term of a second one of the bonds in the portfolio.

3. The method of claim 2, further comprising investing on the part of the bond issuer, for at least part of the term of the first one of the bonds in the portfolio, at least part of the bond proceeds from the issuance of the bonds in the floater financial instrument.