Method for investing yield restricted monies

Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance

Reexamination Certificate

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C705S03600T, C705S037000, C705S001100, C705S038000

Reexamination Certificate

active

07376604

ABSTRACT:
In one embodiment the present invention relates to a method for investing yield restricted monies including bond proceeds associated with at least one bond having a bond yield, wherein the bond proceeds achieve a return above the bond yield to which the bond proceeds would otherwise be restricted by regulation, comprising: obtaining the bond proceeds; and investing at least part of the bond proceeds in a tax-exempt inverse-floater financial instrument, wherein the inverse-floater financial instrument has a first rate of return which varies substantially inversely with regard to a second rate of return of a floater financial instrument. In another embodiment the present invention relates to a method for investing yield restricted monies including bond proceeds associated with a portfolio containing at least two bonds, wherein each of the bonds has a respective bond term and a respective bond yield, wherein the portfolio has a term overlapping at least the terms of each of the bonds, wherein an aggregate bond yield is formed of a combination of the yields of each of the bonds, and wherein the bond proceeds achieve an aggregate return, over the term of the portfolio, above the aggregate bond yield to which the bond proceeds would otherwise be restricted by regulation, comprising: obtaining the bond proceeds; and investing, for at least part of the term of a first one of the bonds contained in the portfolio, at least part of the bond proceeds in a tax-exempt inverse-floater financial instrument, wherein the inverse-floater financial instrument has a first rate of return which varies substantially inversely with regard to a second rate of return of a floater financial instrument.

REFERENCES:
patent: 2002/0077955 (2002-06-01), Ramm
Heap “Investments: Rochestor Fund Manager Touts Virtues of Inverse Floaters”, Bond Buyer. New York, N.Y.: Nov. 21, 1995.vol. 314, Iss. 29782; p. 24.
David F. Babbel et al. “Inverse Floaters and Income Stability of a Debt Securities Investment Portfolio”, Journal of Portfolio Management, winter 2000.
“Oppenheimer Main Street California Tax-Exept Fund”, supplement dates Sep. 9, 1994 to the Prospectus dated Oct. 25, 1993.

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