Synthetic funds having structured notes
First Claim
1. A computer-implemented system for issuing a structured note, the structured note comprising a contract that permits an obligor to offer an exposure to a requestor, wherein the exposure is to at least one objective valuation measure, the system comprising:
- a request module receiving a request from the requestor to purchase the structured note from the obligor, the structured note having an investment return based on terms of the structured note including at least one purchaser-selected objective valuation measure;
a generating module generating the structured note based on the request received by the request module;
an issuing module issuing to the requestor a confirmation of issuance of the generated structured note in response to the request; and
customization components implemented by a computer processor that display a graphical user interface providing customization capabilities that customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability that receives an initial selection of the exposure to the at least one objective valuation measure from the requestor, (b) a post-issuance capability that receives a unilateral alteration of the initial selection of the exposure from the requestor,wherein the obligor does not minimize a liability and asset mismatch between structured note liabilities and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced by the system to exceed the return achievable by investors through taking the exposure to the at least one purchaser selected valuation measure directly.
3 Assignments
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.
88 Citations
49 Claims
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1. A computer-implemented system for issuing a structured note, the structured note comprising a contract that permits an obligor to offer an exposure to a requestor, wherein the exposure is to at least one objective valuation measure, the system comprising:
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a request module receiving a request from the requestor to purchase the structured note from the obligor, the structured note having an investment return based on terms of the structured note including at least one purchaser-selected objective valuation measure; a generating module generating the structured note based on the request received by the request module; an issuing module issuing to the requestor a confirmation of issuance of the generated structured note in response to the request; and customization components implemented by a computer processor that display a graphical user interface providing customization capabilities that customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability that receives an initial selection of the exposure to the at least one objective valuation measure from the requestor, (b) a post-issuance capability that receives a unilateral alteration of the initial selection of the exposure from the requestor, wherein the obligor does not minimize a liability and asset mismatch between structured note liabilities and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced by the system to exceed the return achievable by investors through taking the exposure to the at least one purchaser selected valuation measure directly. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
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25. A computer-implemented system for issuing a structured note, the structured note comprising a contract that permits an obligor to offer an exposure to a requestor, wherein the exposure is to at least one objective valuation measure, the system comprising:
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a request module receiving a request from a requestor to purchase the structured note from the obligor, the structured note having an investment return based on terms of the structured note including at least one purchaser-selected objective valuation measure, where the request comprises the terms of the structured note and the amount of purchase, and where the terms of the structured note further comprise the valuation of the structured note and a time period for redeeming the structured note; a generating module generating the structured note based on the request received by the request module, where the generating module generates a unique identifier for the structured note and where the purchaser has an identifier; an issuing module issuing to the requestor a confirmation of issuance of the generated structured note in response to the request; customization components implemented by a computer processor that display a graphical user interface providing customization capabilities that customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability that receives an initial selection of the exposure to the at least one objective valuation measure from the requestor, (b) a post-issuance capability that receives a unilateral alteration of the initial selection of the exposure from the requestor, wherein altering the initial selection comprises altering weightings of the purchaser selected objective valuation measures; and a storage module, where the storage module stores and links the unique identifier for the structured note and the purchaser identifier, wherein the obligor does not minimize a liability and asset mismatch between structured note liabilities and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced by the system to exceed the return achievable by investors through taking the exposure to the at least one purchaser selected valuation measure directly. - View Dependent Claims (26, 27, 28, 29, 30, 31)
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32. A computer readable medium for causing a process to issue a structured note, the structured note comprising a contract that permits an obligor to offer an exposure to a requestor, wherein the exposure is to at least one objective valuation measure, the medium comprising:
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code that receives a request from a requestor to purchase the structured note from an obligor, the structured note having an investment return based on terms of the structured note including at least one purchaser-selected objective valuation measure; code that generates the structured note; code that issues a confirmation of the structured note in response to the request; and code that provides customization capabilities implemented by a computer processor to display a graphical user interface to customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability that receives an initial selection of the exposure to the at least one objective valuation measure from the requestor, (b) a post-issuance capability that receives a unilateral alteration of the initial selection of the exposure from the requestor, wherein the obligor does not minimize a liability and asset mismatch between structured note liabilities and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced by the system to exceed the return achievable by investors through taking the exposure to the at least one purchaser selected valuation measure directly. - View Dependent Claims (33, 34, 35, 36, 37, 38, 39, 40, 41, 42)
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43. A computer readable medium for causing a processor to issue a structured note, the structured note comprising a contract that permits an obligor to offer an exposure to a requestor, wherein the exposure is to at least one objective valuation measure, the medium comprising:
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code that receives a request from a requestor to purchase the structured note from an obligor, where the request comprises the terms of the structured note and the amount of purchase, the structured note having an investment return based on at least one purchaser-selected objective valuation measure; and
where the terms of the at least one structured note further comprise the at least one purchaser-selected objective valuation measure for valuation of the structured note and a time period for redeeming the at least one structured note;code that generates the structured note, where the code for generating generates a unique identifier for the structured note and where the purchaser has an identifier; code that issues a confirmation of the structured note in response to the request, code that stores and links the unique identifier for the structured note and the purchaser identifier; and code that provides customization capabilities implemented by a computer processor to display a graphical user interface to customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability that receives an initial selection of the exposure to the at least one objective valuation measure from the requestor, (b) a post-issuance capability that receives a unilateral alteration of the initial selection of the exposure from the requestor, wherein the obligor does not minimize a liability and asset mismatch between structured note liabilities and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced by the system to exceed the return achievable by investors through taking the exposure to the at least one purchaser selected valuation measure directly. - View Dependent Claims (44, 45, 46, 47, 48, 49)
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Specification