Data processing systems and method for creating efficient...

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Reexamination Certificate

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C705S035000

Reexamination Certificate

active

07340427

ABSTRACT:
A method for creating investment securities structured from interest-rate derivative and mortgage pool components is described. The method includes analyzing the risk elements of the derivative and mortgage pool components, structuring one or more classes of securities, at least one of which is backed by these components in combination, and issuing the structured securities. A computer program product and data processing system for practicing the method are also described. A novel investment security is disclosed which incorporates cash flows from mortgage pool components and cash flows coming from derivative components. Finally, a method of adding value to mortgage-backed securities is described.

REFERENCES:
patent: 5966700 (1999-10-01), Gould et al.
patent: 6070151 (2000-05-01), Frankel
patent: 6208738 (2001-03-01), Goldenfeld et al.
patent: 6321212 (2001-11-01), Lange
patent: 2003/0074306 (2003-04-01), Rios et al.
Pricing Mortgage Backed Securities—Bow-Couldh. J.—NYU, Dec. 18, 1996.
Journal of Housing Research—vol. 6 line 2 (1995)—Chen, 1995.
“Relevance of Interest Rate Processes in Pricing” “Closer Look at Mortgage Racked Securities”—Cahill, May 1999.
“Investor's Guide to Mortgage Securities.”
Layer Eight Systems (1994).
Structured Notes—Pemberton, R./Canso Investment Counsel.
Wheeler, Douglas S., Bank Accounting & Finance, Boston, Spring 1992, vol. 5, Issue 3, p. 13.

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