Synthetic funds having structured notes
First Claim
1. A computer-implemented process for creating and 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 process comprising:
- displaying customization components using one or more computer processors, the customization components providing customization capabilities allowing the requestor to customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability allowing the requestor to make an initial selection of the exposure to the at least one objective valuation measure, and (b) a post-issuance capability allowing the requestor unilaterally to alter the initial selection of the exposure;
receiving and processing, using the one or more computer processors, a request from the requestor to purchase at least one structured note from the obligor, the request including an initial selection of the exposure to the at least one objective valuation measure made through the customization components, the structured note having an investment return based on terms of the structured note including the at least one objective valuation measure, 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, using the one or more computer processors, 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;
issuing to the requestor, using the one or more computer processors, a confirmation of the at least one structured note; and
subsequently displaying, using the one or more computer processors, a user interface providing for entry of a request to modify the structured note through the customization components, the modification request including alteration of the initial exposure selection,wherein the obligor creates a liability and asset mismatch between structured note liabilities defined by the portfolio and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced to exceed potential return achievable through direct exposure.
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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.
188 Citations
29 Claims
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1. A computer-implemented process for creating and 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 process comprising:
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displaying customization components using one or more computer processors, the customization components providing customization capabilities allowing the requestor to customize the exposure of the structured note, the customization capabilities comprising (a) an initial selection capability allowing the requestor to make an initial selection of the exposure to the at least one objective valuation measure, and (b) a post-issuance capability allowing the requestor unilaterally to alter the initial selection of the exposure; receiving and processing, using the one or more computer processors, a request from the requestor to purchase at least one structured note from the obligor, the request including an initial selection of the exposure to the at least one objective valuation measure made through the customization components, the structured note having an investment return based on terms of the structured note including the at least one objective valuation measure, 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, using the one or more computer processors, 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; issuing to the requestor, using the one or more computer processors, a confirmation of the at least one structured note; and subsequently displaying, using the one or more computer processors, a user interface providing for entry of a request to modify the structured note through the customization components, the modification request including alteration of the initial exposure selection, wherein the obligor creates a liability and asset mismatch between structured note liabilities defined by the portfolio and offsetting hedge instruments, thus incurring increased risk, thereby enabling the investment return produced to exceed potential return achievable through direct exposure. - 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, 25, 26, 27, 28)
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29. A process for creating and 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 process comprising:
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displaying a first user interface through implementation of one or more computer processors, the first user interface providing selectable options enabling the requestor to select a fund-of-funds composition representing a portfolio including one or more assets with market exposures, the assets including passive and active assets, wherein the market exposures are objective valuation measures, the selectable options including an investment amount selection option for selecting a total investment amount and a weighting option for enabling distribution of the total selected investment amount across the assets in accordance with a requestor selection; receiving and processing, using the one or more computer processors, 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, using the one or more computer processors, the at least one structured note based on the request; receiving payment for the at least one structured note; issuing confirmation of the at least one structured note through implementation of the one or more computer processors; and subsequently displaying a second user interface using the one or more computer processors, the second user interface facilitating requestor-selectable modification of the purchased structured note, available requestor selectable modifications including an overall investment amount modification and a weighting modification for enabling market exposure to be redistributed by modification of a percentage of the overall investment amount corresponding to one or more selected assets; wherein performance of the at least one structured note is customized by the obligor, providing an ability to the obligor to buy and manage at least one asset differently from requestor selected market exposure of the structured note, thereby providing an ability by the obligor to short performance of the structured note and to establish a hedge position for the structured note and providing an ability for the requestor to leverage or short performance of at least one of the selected assets.
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Specification