Method of Managing Financial Instruments Equipment Lease Derivatives and Other Collateral Instruments Data Architecture Application and Process Program

Abstract

A computer-implemented process and methodology that selects collateral instruments such as equipment leases, using mathematical models, based on selection criteria, risk-reward relationships, and maturity needs resulting in the creation of new financial instrument derivatives. These new derivatives allow for creation of secured private equity, public equity, mutual funds and venture capital funds where the investors' principal is safeguarded against loss regardless of the performance of the investments being made. A two-tier investment structure is created whereby the principal amounts from the fund are invested in specially identified high yield vehicles such as residual equipment leases with high yields over certain maturities. The high yield cash flow only is then invested in higher risk investments such as venture capital start-ups companies.

1 - 18 . (canceled) 
     
     
         19 . A method for selecting collateral instruments to create, optimize, manage and trade investment portfolios comprising the steps of:
 (a) receiving, by a computing device, data including dynamic data pertaining to collateral instruments, said computing device being configured for determining, from the received data, a rate of return of investing in said collateral instruments;   (b) determining from the received data, by iterative processing of dynamic data by said data-receiving computing device, a rate of return of investing for each of a plurality of collateral instruments for which data is received as aforesaid;   (c) maintaining, electronically stored in a computer-readable medium, a data structure of criteria including a minimum rate of return of investing for selecting collateral instruments for a pool;   (d) selecting from said plurality of collateral instruments, by a computing device configured for electronically consulting the data structure and comparing therewith received data and determined rate of return of investing, collateral instruments for inclusion in a set of selected collateral instruments wherein each collateral instrument comprises a financial instrument having a principal component and an interest component and providing a calculated low risk and a calculated high cash flow; and   (e) creating, by a computing device configured for doing so, using a set of collateral instruments selected as aforesaid, financial instrument derivatives backed by the set of selected collateral instruments.   
     
     
         20 . A method according to claim  1 , wherein at least two of steps (b), (d) and (e) are performed by the same computing device. 
     
     
         21 . A method according to claim  1 , wherein the selected collateral instruments are selected from one or more of the group consisting of stocks, equipment leases, bonds, assets, receivables, debt instruments, treasury bills, preferred stock, asset backed securities, credit card debt and mortgages. 
     
     
         22 . A method according to claim  1 , wherein the minimum rate of return is dependent on an investment grade rating of a type of investment vehicle. 
     
     
         23 . A method according to claim  4 , wherein the type of investment vehicle is one of venture capital, private equity, public equity, asset-backed securities and debt instruments. 
     
     
         24 . A method according to claim  1 , wherein said derivatives constitute a first tier of financial instrument derivatives, and further including the step of creating, by a computing device configured for doing so, from said first tier of financial instrument derivatives, a second tier of financial instrument derivatives. 
     
     
         25 . A method according to claim  6 , further including the step of creating, by a computing device configured for doing so, a computer-based securities trading exchange for trading said derivatives. 
     
     
         26 . A system for facilitating a selection of collateral instruments to create, optimize, manage and trade investment portfolios, comprising:
 (a) a data storage unit having stored therein a data structure of criteria including a minimum rate of return of investing for selecting collateral instruments for a pool and   (b) a computer, coupled to said data storage unit, that is configured to
 (i) receive data including dynamic data pertaining to collateral instruments and determine from the received data, by iterative processing of dynamic data, a rate of return of investing for each collateral instrument for which data is received as aforesaid; 
 (ii) electronically consult the data structure and compare therewith received data and determined rate of return of investing for each collateral instrument for which data is received as aforesaid, to select collateral instruments for inclusion in a set of selected collateral instruments wherein each collateral instrument comprises a financial instrument having a principal component and an interest component and providing a calculated low risk and a calculated high cash flow; and 
 (iii) create, using a set of collateral instruments selected as aforesaid, financial instrument derivatives backed by the set of selected collateral instruments. 
   
     
     
         27 . A system as defined in claim  8 , wherein the selected collateral instruments are selected from one or more of the group consisting of stocks, equipment leases, bonds, assets, receivables, debt instruments, treasury bills, preferred stock, asset backed securities, credit card debt and mortgages. 
     
     
         28 . A system as defined in claim  8 , wherein the minimum rate of return is dependent on an investment grade rating of a type of investment vehicle. 
     
     
         29 . A system as defined in claim  10 , wherein the type of investment vehicle is one of venture capital, private equity, public equity, asset-backed securities and debt instruments. 
     
     
         30 . A system as defined in claim  8 , wherein said derivatives constitute a first tier of financial instrument derivatives, and wherein said computer is configured to create, from said first tier of financial instrument derivatives, a second tier of financial instrument derivatives.