Jpmorgan Chase Bank, N.a.

John C Barone

Gerald F Topitzer

A system and method for hedging risks in commercial leases is disclosed. In one particular exemplary embodiment, a method for hedging risks in a commercial lease may comprise: receiving information related to a lease agreement between a lessor and a lessee, the lease agreement calling for the lessor to lease an asset to the lessee for a period of time in return for lease payments; estimating potential losses that the lessor will suffer if at least one credit event causes the lessee to default on the lease agreement; and providing the lessor a put option, whereby, upon the at least one credit event, the lessor can choose to sell a claim against the defaulting lessee at a strike price, the strike price being an amount that varies based at least in part on the estimated potential losses and the time at which the lessee defaults.

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Brewster, NY, United States of America

John C Barone