Methods, software programs, and systems for managing one or more liabilities

• US 8,548,901 B1
• Filed: 03/20/2002
• Issued: 10/01/2013
• Est. Priority Date: 11/28/2000
• Status: Expired due to Term

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Butcher, George H. III
• Primary Examiner(s): TINKLER, MURIEL S
• Application Number:
  US10/102,195
• Time in Patent Office: 4,213 Days
• Field of Search: 705/37, 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

The present invention relates to various methods, software programs, and systems for managing one or more liabilities. More particularly, certain embodiments of the present invention relate to methods, software programs, and systems for managing debt in the form of at least one credit issued by a borrower.

Claims

1. A computer implemented method for structuring a variable rate municipal bond, comprising:

setting by a computer a predetermined expected principal amortization period for the variable rate municipal bond;

setting by a computer a budgeted debt service for the variable rate municipal bond, wherein the budgeted debt service minus a predetermined interest equals an actual principal paid;

adjusting by a computer the predetermined expected principal amortization period to the extent that the actual principal remains to be paid; and

setting by a computer the budgeted debt service based on a savings versus debt service associated with a fixed interest rate on a bond which is similarly structured to the variable rate municipal bond.

2. The method of claim 1, wherein the variable rate municipal bond is a term bond.

3. The method of claim 1, wherein the savings is represented by a savings pattern.

4. The method of claim 1, wherein the budgeted debt service is set periodically over a life of the variable rate municipal bond.

5. The method of claim 1, wherein the budgeted debt service is set yearly over a life of the variable rate municipal bond.

6. The method of claim 1, wherein the budgeted debt service remains substantially constant over a life of the variable rate municipal bond.

7. The method of claim 1, wherein the budgeted debt service varies over a life of the variable rate municipal bond.

8. The method of claim 1 wherein at least part of the savings are used to refund a fixed rate bond.

9. The method of claim 1, wherein the variable rate municipal bond is selected from the group including:

(a) a single issue variable rate demand bond; and

(b) a series of variable rate demand bonds.

10. A computer implemented method for structuring a variable rate municipal bond, comprising:

setting by a computer a predetermined expected principal amortization period for the variable rate municipal bond;

setting by a computer an expected debt service for the variable rate municipal bond, wherein the expected debt service minus a predetermined interest equals an actual principal paid; and

adjusting by a computer the predetermined expected principal amortization period to the extent that the actual principal remains to be paid;

wherein the expected debt service that is set utilizing a computer is based on;

i) the predetermined expected principal amortization period and a target interest rate that is substantially between an initial interest rate on the variable rate municipal bond and a fixed interest rate on a bond which is similarly structured to the variable rate municipal bond.

11. The method of claim 10, wherein the variable rate municipal bond is a term bond.

12. The method of claim 10, wherein the savings is represented by a savings pattern.

13. The method of claim 10, wherein the target interest rate remains substantially constant over a life of the variable rate municipal bond.

14. The method of claim 10, wherein the target interest rate varies over a life of the variable rate municipal bond.

15. The method of claim 10, wherein the expected debt service remains substantially constant over a life of the variable rate municipal bond.

16. The method of claim 10, wherein the expected debt service varies over a life of the variable rate municipal bond.

17. The method of claim 10, wherein at least part of the savings are used to refund a fixed rate bond.

18. The method of claim 10, wherein the variable rate municipal bond is selected from a group including:

(a) a single issue variable rate demand bond; and

(b) a series of variable rate demand bonds.