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

• US 8,489,491 B2
• Filed: 02/01/2010
• Issued: 07/16/2013
• Est. Priority Date: 06/19/2001
• Status: Expired due to Term

• Current Assignee: Digitech Information Systems Incorporated
• Original Assignee: Digitech Information Systems Incorporated
• Inventors: Gulati, Deepak, Beverly, Robert E. IV
• Primary Examiner(s): Liu, Marissa
• Application Number:
  US12/658,087
• Publication Number:
  US 20100250464A1
• Time in Patent Office: 1,261 Days
• Field of Search: 705 1- 50, 709200-205, 707 5- 27
• US Class Current: 705/37
• 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. A method for selecting collateral instruments to optimize an investment portfolio comprising the steps of:

a. receiving dynamic data pertaining to collateral instruments;

b. calculating by computer a rate of return of investing in said collateral instruments;

c. selecting by computer collateral instruments based on an investment rate of return; and

d. using the selected collateral instruments to create financial instrument derivatives and optimize the investment portfolio by computer, wherein the financial instrument derivatives are backed by the selected collateral instruments,

wherein said collateral instruments each comprise a financial instrument having a principal component and an interest component and providing a calculated low risk and a calculated high cash flow.

2. The method of claim 1 wherein the selected collateral instruments are selected from a group comprising stocks, equipment leases, bonds, assets, receivables, debt instruments, treasury bills, preferred stock, asset backed securities, securities, credit card debt and mortgages.

3. The method of claim 1 wherein the appropriate investment rate of return is dependent on an investment grade rating of a type of investment vehicle.

4. The method of claim 3 wherein the type of investment vehicle is one of venture capital, private equity, public equity, asset-backed securities and/or debt instruments.

5. The method of claim 1 wherein the collateral instruments and the financial instrument derivatives are used to form a two tier investment structure.

6. The method of claim 4 wherein the two tier investment structure is applied to a venture capital environment, private equity, public equity, asset-backed securities and/or debt instruments.

7. The method of claim 1 wherein collateral instruments are selected to create a securities trading exchange.

8. 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 dynamic data pertaining to collateral instruments;

calculating by computer a rate of return of investing in said collateral instruments;

selecting by computer collateral instruments based on an investment rate of return; and

using the selected collateral instruments to create financial instrument derivatives and optimize the investment portfolio by computer, wherein the financial instrument derivatives are backed by the collateral instruments,

wherein the selected collateral instruments each comprise a financial instrument having a principal component and an interest component and providing a calculated low risk and a calculated high cash flow.

9. The apparatus of claim 8 wherein the selected collateral instruments are selected from a group comprising stocks, equipment leases, bonds, assets, receivables, debt instruments, treasury bills, preferred stock, asset backed securities, securities credit card debt and mortgages.

10. The apparatus of claim 8 wherein an appropriate rate of return is dependent on an investment grade rating of a type of investment vehicle.

11. The apparatus of claim 10 wherein the type of investment vehicle is one of venture capital, private equity, public equity, asset-backed securities and/or debt instruments.

12. The apparatus of claim 8 wherein the collateral instruments and the financial instrument derivatives are used to form a two tier investment structure.

13. The apparatus of claim 12 wherein the two tier investment structure is applied to a venture capital environment, private equity, public equity, asset-backed securities and/or debt instruments.

14. The apparatus of claim 8 wherein collateral instruments are selected to create a securities trading exchange.