Apparatus and Method for Component Analysis of Pooled Securities

Abstract

A system for valuation of pooled financial products contracts comprises receiving or extracting or generating data elements regarding financial products contracts, determining valuations of the financial products contracts data elements by calculation or comparison methods, creating a data report in a standard data format, storing the data report in the one or more data storage devices, receiving new data items relating to nonfinancial risk or financial risk affecting quality or risk of one or more of the financial products contracts, performing calculations with respect to the new data items to determine an updated valuation of the financial products contracts; and adding to or modifying the data report to create a risk updated data report incorporating updated financial products contracts valuation, and storing the updated data report in the one or more data storage devices.

1 . Apparatus for valuation of pooled securities, comprising:
 a data processing system having one or more program executing computers, and one or more data storage devices;   one or more computer programs executing on said data processing system for:
 receiving or extracting or generating data elements regarding financial products contracts included in a pooled security, 
 determining valuations of the financial products contracts data elements by calculation or comparison methods; 
 creating a data report in a standard data format containing the financial products contracts data elements, 
 storing the data report in the one or more data storage devices, 
 receiving new data items regarding one or more of the financial products contracts, 
 determining updated valuations of the financial products contracts data items by calculation or comparison methods; 
 adding to or modifying the data report to create an updated data report incorporating the new data items, 
 storing the updated data report in the one or more data storage devices. 
   
     
     
         2 . The apparatus of  claim 1  wherein said standard data format contains data tags to identify each data element. 
     
     
         3 . The apparatus of  claim 2 , wherein said standard data format is an XBRL (eXtensible Business Reporting Language) data format. 
     
     
         4 . The apparatus of  claim 1  wherein said one or more computer programs perform calculations with respect to said new data items to determine valuation. 
     
     
         5 . The apparatus of  claim 1  wherein said valuation is determined relative to predetermined standards. 
     
     
         6 . The apparatus of  claim 4  wherein said one or more computer programs add to or modify the data report to create a valuation updated data report incorporating determined valuation identified with valuation data tags. 
     
     
         7 . The apparatus of  claim 1 , wherein said financial products contracts comprise insurance contracts, reinsurance contracts, loans, or lines of credit, or subsequent and derivative transactions relating thereto. 
     
     
         8 . The apparatus of  claim 7 , wherein said data regarding financial products contracts comprise one or more of insurance underwriting standards, insurance financial terms, insurance applicant data, loan application standards, loan financial terms, loan applicant data, or comparable transaction details. 
     
     
         9 . The apparatus of  claim 8  wherein said new data items regarding one or more of the financial products contracts include one or more of payment history, appraised value, loan to value ratio, comparable transaction details, comparable property defaults or value changes or risks, related financial instrument changes, or derivative contract data. 
     
     
         10 . The apparatus of  claim 1 , wherein said financial products contracts comprise credit default swap contracts which are against either covered or uncovered positions. 
     
     
         11 . The apparatus of  claim 1 , further comprising:
 one or more computer programs executing on said data processing system for determining if a person has provided data elements regarding financial products contracts to said data processing system and calculating a system credit related to a quantity of data elements provided by said person.   
     
     
         12 . The apparatus of  claim 11  wherein said system credit may be applied by the person to a cost of obtaining data reports from said data processing system or to reduce other costs charged for uses of said data processing system. 
     
     
         13 . The apparatus of  claim 12  wherein said system credit is operably connected to a data element, data report, new data item, or updated data report. 
     
     
         14 . A computer program product for use in valuation of pooled securities financial contracts, said computer program product embodied on computer-readable medium and comprising code that, when executed on a computer, causes the computer to perform the following steps:
 create a data report file in a standard data format using data tags to identify financial products contracts data elements for one or more financial products contained in a pooled security,   store said data report file as one of a plurality of electronic data files;   receive new data items affecting valuation of one or more of the financial products contracts,   perform calculations with respect to said new data items to determine an updated valuation of one or more of the financial products contracts;   add to or modify said data report file to create an updated data report file incorporating updated valuation of one or more of the financial products contracts identified with updated valuation data tags, and   storing the updated data report file in said one or more data storage devices.   
     
     
         15 . The computer program product of  claim 14 , wherein said financial products contracts comprise insurance contracts, reinsurance contracts, loans, or lines of credit, or subsequent and derivative transactions relating thereto. 
     
     
         16 . The computer program product of  claim 15 , wherein said data regarding financial products contracts comprise one or more of insurance underwriting standards, insurance financial terms, insurance applicant data, loan application standards, loan financial terms, or loan applicant data. 
     
     
         17 . The computer program product of  claim 16  wherein said new data items regarding one or more of the financial products contracts include one or more of payment history, appraised value, loan to value ratio, comparable transaction details, comparable property defaults or value changes or risks, related financial instrument changes, or derivative contract data. 
     
     
         18 . The computer program product of  claim 14  wherein said risk conditions are determined relative to predetermined standards. 
     
     
         19 . A method, comprising the steps of:
 receiving or extracting or generating data elements regarding financial products contracts in a pooled security from one or more persons at a data processing system having a program executing computer and a data storage device;   determining valuations of the financial products contracts by calculation or comparison methods;   a computer program executing on said program executing computer formatting the data elements including the valuations of the financial products contracts into a data report having a standard data report format and storing the data report in said data storage device,   receiving new data items relating to nonfinancial risk or financial risk affecting valuation of one or more of the financial products contracts at the data processing system,   said computer program executing on said program executing computer adding to or modifying said data report to create an updated data report incorporating the new data items, and   determining updated valuations of the financial products contracts by calculation or comparison methods, and   storing the updated data report including the updated valuations of the financial products contracts in said one or more data storage devices.   
     
     
         20 . The method of  claim 19  wherein said computer program performs calculations with respect to said new data items to determine valuation. 
     
     
         21 . The method of  claim 19 , wherein said risk conditions are determined relative to predetermined standards. 
     
     
         22 . The method of  claim 19  wherein said computer program adds to or modifies the data report to create a risk updated data report incorporating determined valuation. 
     
     
         23 . The method of  claim 19 , wherein said financial products contracts comprise insurance contracts, reinsurance contracts, loans, or lines of credit, or subsequent and derivative transactions relating thereto. 
     
     
         24 . The method of  claim 19 , wherein said data regarding financial products contracts comprise one or more of insurance underwriting standards, insurance financial terms, insurance applicant data, loan application standards, loan financial terms, loan applicant data, payment history, appraised value, loan to value ratio, derivative contract data, changes in related financial products, or defaults in related financial products. 
     
     
         25 . The method of  claim 19 , wherein said standard data format contains data tags to identify each data element and are contained, tracked and audited across the life of the instrument by the transaction credit. 
     
     
         26 . The method of  claim 19 , further comprising:
 one or more computer programs executing on said data processing system for determining if a person has provided data elements regarding financial products contracts to said data processing system and calculating a system credit related to a quantity of data elements provided by said person.   
     
     
         27 . The method of  claim 26  wherein said system credit may be applied by the person to a cost of obtaining data reports from said data processing system or to reduce other costs charged for uses of said data processing system. 
     
     
         28 . The method of  claim 26  wherein said system credit is related to a data element, data report, new data item, or updated data report. 
     
     
         29 . A system for evaluating pooled securities for users, comprising:
 a database;   pooled security creating software executing on a computer readable medium for creating a pooled security data record for a pooled security and storing it in the database;   risk creating software executing on a computer readable medium for creating a risk data record for a risk, storing it in the database, and associating it with pooled security data record; and   evaluation software executing on a computer readable medium for evaluating the value of a pooled security based at least in part on any associated risk data records;   wherein each pooled security record has one or more risk data record associated therewith;   each risk data record contains data used for calculating the monetary value of the risk; and   users on the system are provided access to the value of pooled security and associated risks.   
     
     
         30 . The system of  claim 29  further comprising reporting software executing on a computer readable medium for reporting data related to pooled security data records and/or risk data records. 
     
     
         31 . The system of  claim 29  wherein the pooled security creating software creates pooled security data records for pooled securities which are combinations of one or more of loans, insurance contracts and lines of credit. 
     
     
         32 . The system of  claim 29  wherein the pooled security creating software creates pooled security data records for financial instruments such as subsequent or derivative instruments. 
     
     
         33 . The system of  claim 32  wherein a subsequent or derivative instrument is associated with at least one risk similar or the same as a risk associated with the preceding or original financial instrument. 
     
     
         34 . The system of  claim 29  wherein the risk creating software creates risk data records for risks such as underwriting standards, financial terms, borrower information, appraised value, loan to value, comparable transaction information, diversification, economic indicators, environmental issues, liquidity, litigation, global conflicts, and market volatility. 
     
     
         35 . The system of  claim 29  wherein users disclose risk data to the system which is used by the risk creating software in exchange for transaction credits. 
     
     
         36 . The system of  claim 35  wherein the transaction credits can be used to access system reporting features, obtain data from the system, and/or reduce other costs charged for use of the system. 
     
     
         37 . The system of  claim 35  wherein a transaction credit is associated with a risk data record, a pooled security data record, and/or a disclosing party. 
     
     
         38 . The system of  claim 35  wherein a transaction credit value is correlated to or defined by the timeliness of a disclosure of risk data.