The Bondfactor Company LLC

Stephen T Mark

George H Butcher, Iii

The invention relates to a computer-implemented method, system and non-transitory medium for managing debt instrument. Insuring for a default of a debt is managed by establishing an insuring debt related to an insured debt of a debtor based on an insured debt amount of the insured debt. The debts can be bonds issued by a municipality. A first loss class and a second loss class can be allocated in an insuring trust. A first class holder can be entitled to a payment from the insuring debt based on a debt owed to the first class holder from an established insuring fund of the insuring trust. The insuring fund is used to insure for a default of the insured debt. If the insured debt is not in default, the payment is diverted to the first class holder. Otherwise, the payment is intercepted, and an insuring payment from the insuring fund is paid to a holder of the insured debt to cure the default.

Method, software program, and system for structuring risk in a financial transaction

A computer-implemented method, system, apparatus, and media is directed to minimizing a risk associated with an anticipated value of an investment. An insurer establishes a capital structure within a computer memory of a computer system, the capital structure designed to minimize risk and structured with regulatory capital and a cash stream that is pledged to fund a default associated with the investment. Establishing the capital structure can include allocating regulatory capital based on a coverage factor multiplied by an average annual depression scenario default percentage for the investment and determining a portion of the capital structure for a pledged insuring investment that produces at least a portion of the cash stream. A determination of whether the established capital structure is sufficient to obtain a minimal target credit rating for the insurer is generated. The desired target rating is electronically provided based on the determination.

A computer-implemented method, system, apparatus, and non-transitory media is directed to providing a graphical user interface for insuring a default of debts specified in financial instruments. A computer system establishes a capital structure which includes an insuring debt related to an insured debt of a debtor based on an insured debt amount representing at least a proportion of the insured debt. A first loss class and a second loss class is allocated for an insuring trust. The capital structure is simulated, including a payment payable from the insuring debt to a first class holder in the first class, wherein the first class holder is entitled to the payment based on a debt to the first class holder of an insuring fund of the insuring trust. An user interface provides a simulation of the capital structure including an insuring scenario based on various alterable inputs.

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Redding, CT, United States of America

Stephen T Mark