Barclays Capital Inc.

Michael Sherman

Diane M Rinnovatore

Kent Peer-Nous

Paul Robinson

Basil Williams

Steven R Halperin

Henry Domenici

In one aspect, the invention comprises a method comprising issuing perpetual preferred securities that provide non-cumulative dividends with a fixed liquidation preference; wherein valuation of the securities upon redemption or conversion is based on market value of a specified number of common shares, and wherein the securities are operable to receive treasury stock method accounting. In various embodiments: (1) the securities receive C or D Basket treatment from Moody's; (2) the securities receive treasury stock method accounting because, upon conversion or redemption, common shares are issued only with respect to the valuation of the securities in excess of the fixed liquidation preference; and (3) upon conversion or redemption the number of common shares is equal to (A&#xd7;B&#x2212;C)/B, where A=a conversion rate, B=price per share of the common shares, and C=the fixed liquidation preference.

Methods and systems for providing preferred income equity replacement securities

There is provided a financial unit security. The financial unit security includes a secured debt security and an option. The secured debt security and the option are coupled together as a unit.

Asset-backed convertible security

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Brooklyn, NY, United States of America

Michael Sherman