Method, system, device, and media for managing debt support

Abstract

A computer-implemented method, system, apparatus, and media is directed to minimizing a risk associated with an anticipated value of an investment. An insurer establishes a capital structure within a computer memory of a computer system, the capital structure designed to minimize risk and being pledged to fund a default associated with the investment. Establishing the capital structure can include allocating regulatory capital based on a coverage factor multiplied by an average annual depression scenario default percentage for the investment and determining a portion of the capital structure for a pledged insuring investment that produces at least a portion of the cash stream. A determination of whether the established capital structure is sufficient to obtain a minimal target credit rating for the insurer is generated. The desired target rating is electronically provided based on the determination.

What is claimed is: 
     
         1 . A computer-implemented method for minimizing a financial risk associated with an anticipated value of an investment, which comprises: establishing by a computer system of an insurer a capital structure within a computer memory, the capital structure designed to minimize the risk and being structured with capital to fund a default on payments associated with the investment; generating by the computer system a determination of whether the established capital structure is sufficient to cover a depression scenario period to obtain a minimal target credit rating for the insurer; and electronically receiving the target rating based on the generated determination. 
     
     
         2 . The method of  claim 1 , wherein the investment comprises at least one of a debt, a bond or a loan, and wherein the establishing of the capital structure comprises: allocating the regulatory capital in the computer memory to an amount equal to at least a coverage factor multiplied by an average annual depression scenario default percentage for the investment; selecting by the computer system an investment criteria to invest the regulatory capital to create an investment return; and determining by the computer system a portion of the capital structure for a pledged insuring investment. 
     
     
         3 . The method of  claim 1 , which further comprises: allocating, with the computer system, a first credit having a first obligation to make specified payments and a second credit having a second obligation to make specified payments, each of the first credit and second credit being in a non-default state when a respective obligation is met and being in a default state when a respective obligation is not met; associating, with the computer system, a first senior holder and a first subordinate holder with the first credit using (a) a respective first senior holder financial instrument through which payments from the first credit flow to the first senior holder and (b) a respective first subordinate holder financial instrument through which payments from the first credit flow to the first subordinate holder; associating, with the computer system, a second senior holder and a second subordinate holder with the second credit using (a) a respective second senior holder financial instrument through which payments from the second credit flow to the second senior holder and (b) a respective second subordinate holder financial instrument through which payments from the second credit flow to the second subordinate holder; and structuring the first senior holder financial instrument and the first subordinate holder financial instrument in the computer memory to give priority to payments due the first senior holder prior to payments due the first subordinate holder in the event the first credit enters the default state. 
     
     
         4 . A computer-implemented system for carrying out the method of  claim 1  and minimizing a financial risk associated with an anticipated value of an investment, comprising: a company computer implemented component for establishing capital structure, determining whether the established capital structure is sufficient to cover the depression scenario period and electronically receiving the target rating based on the results of the determining step. 
     
     
         5 . A non-transitory processor readable medium for carrying out the method of  claim 1  for minimizing a financial risk associated with an anticipated value of an investment, comprising processor readable instructions that when executed by a processor causes the processor to perform the recited steps of the method. 
     
     
         6 . A computer-implemented method for insuring a default of a debt specified in a financial instrument, which comprises:
 establishing, by a computer processor, an insuring debt of a debtor related to the debt specified in a financial instrument;   allocating by the computer, in a computer memory associated with an insuring vehicle, a first loss class and a second loss class; and   routing, over a computer network, a payment payable from the insuring vehicle to a first class holder in the first class, wherein the first class holder is entitled to the payment based on an insured debt to the first class holder of the insuring debt, wherein the insuring vehicle insures an obligation to make payments for the insured debt.   
     
     
         7 . The method of  claim 6 , wherein the insuring vehicle provides an insuring payment to a holder of the insured debt when the debtor defaults on the obligation to make payments for the insured debt and wherein the routing comprises intercepting at least a portion of the insuring payment when the debtor defaults on the obligation to make payments for the insured debt and diverting at least a portion of the payment to the first class holder. 
     
     
         8 . The method of  claim 6 , which further comprises providing an interactive user interface configured to provide a simulation of the capital structure including an insuring scenario based on inputs for the capital structure, and wherein the user interface provides a mechanism to change the inputs thereby changing the insuring scenario. 
     
     
         9 . A computer system for carrying out the method of  claim 6 , including a device for debt management, comprising:
 a computer memory configured to manage financial data; and   a computer processor configured to perform the establishing, allocating and routing actions of the method.   
     
     
         10 . A computer system for carrying out the method of  claim 8 , including a device for debt management, comprising:
 a computer memory configured to manage financial data;   a computer processor configured to perform the establishing, allocating and routing actions of the method; and   a graphical user interface configured to provide a simulation of the capital structure including an insuring scenario based on inputs for the capital structure, and wherein the user interface provides a mechanism to change the inputs thereby changing the insuring scenario.   
     
     
         11 . A non-transitory processor readable medium for carrying out the method of  claim 6 , comprising instructions that are executable by a computer processor to cause the processor to perform the establishing, allocating and routing actions of the method.