Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
2011-07-26
2011-07-26
Akintola, Olabode (Department: 3691)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
C705S03600T, C705S037000
Reexamination Certificate
active
07987127
ABSTRACT:
A synthetic instrument known as a “Total Fair Value Swap” is disclosed. According to one embodiment, the Total Fair Value Swap may comprise an agreement between two counterparties, a “Fixed Rate Payer” and a “Floating Rate Payer”. According to the agreement, the Fixed Rate Payer makes a stream of payments to the Floating Rate Payer based on a fixed rate, and the Floating Rate Payer makes a second stream of payments to the Fixed Rate Payer based on a floating rate, wherein a first portion of the floating rate is based on a reference interest rate, and wherein a second portion of the floating rate is based on a credit spread associated with the Floating Rate Payer. The reference interest rate may be, for example, London Inter-Bank Offer Rate (LIBOR), prime interest rate, the US dollar swap rate, the U.S. Treasury Bond rate or any other widely traded interest rate that is reset periodically. The credit spread may be observed from the Credit Default Swap (CDS) market.
REFERENCES:
patent: 6304858 (2001-10-01), Mosler et al.
patent: 6347307 (2002-02-01), Sandhu et al.
patent: 7567928 (2009-07-01), Oaten et al.
patent: 2006/0143099 (2006-06-01), Partlow et al.
patent: 2006/0190377 (2006-08-01), Stanley et al.
Options Futures and Other Derivatives,John C. Hull, 5th Ed. Prentice Hall, 2003 (hereinafter Hull), pp. 145, 625, 640-642, 645-647.
Jhamb Pankaj
Oaten David A
Wolf Stephen J
Akintola Olabode
Campbell Kellie
Goodwin & Procter LLP
JP Morgan Chase Bank, NA
LandOfFree
Total fair value swap does not yet have a rating. At this time, there are no reviews or comments for this patent.
If you have personal experience with Total fair value swap, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Total fair value swap will most certainly appreciate the feedback.
Profile ID: LFUS-PAI-O-2665380