Multi-asset participation structured note and swap combination
DCFirst Claim
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1. A computerized investment product comprising:
- a benchmark performance portfolio of assets having a benchmark portfolio exposure;
a computer that manages a leverage portfolio comprising a commodity index portfolio, of long and short positions, having a commodity index portfolio exposure equal to the benchmark portfolio exposure multiplied by a leverage factor of at least 100%;
wherein the benchmark performance portfolio and the leverage portfolio together reduce the risk while increasing the return of the investment product as compared to the benchmark performance portfolio alone.
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Abstract
The present invention provides a unitary note investment instrument and method of use that has two performance components. An investor invests in the issuer the principal amount of the investment. The first component is a base portfolio. The second component is keyed to a passive commodity index, having long and short positions. The instrument'"'"'s commodity index exposure is established as the product of a leverage factor of at least 100% and the amount of the base portfolio exposure. The return to the investor comprises the change in value of both the base portfolio exposure and the commodity index exposure over a predetermined period of time multiplied by a payout factor.
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Citations
30 Claims
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1. A computerized investment product comprising:
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a benchmark performance portfolio of assets having a benchmark portfolio exposure; a computer that manages a leverage portfolio comprising a commodity index portfolio, of long and short positions, having a commodity index portfolio exposure equal to the benchmark portfolio exposure multiplied by a leverage factor of at least 100%; wherein the benchmark performance portfolio and the leverage portfolio together reduce the risk while increasing the return of the investment product as compared to the benchmark performance portfolio alone. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. A computer adapted to manage an investment product comprising:
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a computer; data stored on the computer that corresponds to the investment product; the investment product comprising (a) a benchmark performance portfolio having a benchmark portfolio exposure, and (b) a leverage portfolio comprising a commodity index portfolio, of long and short positions, having a commodity index portfolio exposure equal to the benchmark portfolio exposure multiplied by a leverage factor of at least 100%; wherein the benchmark performance portfolio and the leverage portfolio together reduce the risk while increasing the return of the investment as compared to the benchmark performance portfolio alone; and wherein the computer creates, structures, issues, monitors and reports information about the investment product.
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19. A computerized investment product comprising:
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a benchmark performance portfolio of assets having a benchmark portfolio exposure; an incremental benchmark portfolio of assets having an incremental benchmark portfolio exposure less than or equal to 50% of the benchmark portfolio exposure; a computer that manages a leverage portfolio comprising a commodity index portfolio, of long and short positions, having a commodity index portfolio exposure equal to the benchmark portfolio exposure multiplied by a leverage factor of at least 100%; wherein the benchmark performance portfolio and the leverage portfolio together reduce the risk while increasing the return of the investment as compared to the benchmark performance portfolio alone; an investment principal that is invested in the commodity index portfolio, serves as collateral for the benchmark performance portfolio and is returned to an investor by an issuer at the end of a predetermined time period; a return comprising a change in value of the benchmark performance portfolio and the commodity index portfolio over the predetermined time period. - View Dependent Claims (20, 21, 22, 23, 24, 25, 26, 27, 28, 29)
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30. A computer adapted to manage an investment product comprising:
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a computer; data stored on the computer that corresponds to the investment product; the investment product comprising (a) a benchmark performance portfolio of assets having a benchmark portfolio exposure, (b) an incremental benchmark portfolio having an incremental benchmark portfolio exposure less than or equal to 50% of the benchmark portfolio exposure, (c) a leverage portfolio comprising a commodity index portfolio, of long and short positions, having a commodity index portfolio exposure equal to the benchmark portfolio exposure multiplied by a leverage factor of at least 100%, (d) an investment principal that is invested in the commodity index portfolio, serves as collateral for the benchmark performance portfolio and is returned to an investor by an issuer at the end of a predetermined time period, and (e) a return comprising a change in value of the benchmark performance portfolio and the commodity index portfolio over the predetermined time period; wherein the benchmark performance portfolio and the leverage portfolio together reduce the risk while increasing the return of the investment product as compared to the benchmark performance portfolio alone; and wherein the computer creates, structures, issues, monitors and reports information about the investment product.
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Specification