Cash flow rating system

Abstract

Methods and systems are provided herewith for rating a likelihood of payment of one or more cash flows. A computing device receives information about a debt instrument portfolio comprising one or more debt instruments, the information comprising a quantity and a price (e.g., a purchase price) associated with each of the one or more debt instruments. The computing device determines a current market price of each of the one or more debt instruments. The computing device determines a payment schedule for each of the one or more debt instruments, each payment schedule comprising one or more payments, each payment schedule correlating a series of payment amounts with respective scheduled times of payment. The computing device determines a probability of payment for the one or more payments for each of the one or more debt instruments. In some embodiments, the computing device may also determine an expected net present value of the one or more payments. The computing device may also determine a portfolio cash flow rating of the debt instrument portfolio based on one or more of: the quantity and purchase price associated with each of the one or more debt instruments; and the probability of payment for the one or more payments. The cash flow rating may also be determined based on a current market price of each of the one or more debt instruments, a net present expected value of the one or more payments in the payment schedule for each of the one or more debt instruments, and/or a credit rating of one or more issuers associated with the debt instruments. The computing device outputs the portfolio cash flow rating to an output device.

1 . (canceled) 
     
     
         2 . An apparatus, comprising:
 at least one processor of at least one computer in electronic communication with at least one other computer via an electronic communications network; and   a memory that stores instructions which, when executed by the at least one processor, directs the at least one processor to:
 communicate with an account module to generate a user account comprising one or more debt instruments to determine a cash flow rating, wherein the user account comprises a financial account based on user's holdings derived from the user's order book; 
 automatically communicate with a user preferences module to automatically determine user preferences concerning one or more payments and/or debt instruments, wherein the preferences are automatically received from an automated user terminal; 
 communicate using a schedule module with a database of an electronic exchange over the electronic communication network to determine a schedule of payments for one or more debt instruments; 
 communicate with a parameters module to determine parameters for one or more debt instruments 
 communicate with an instrument module to search one or more debt instrument based on the parameters; 
 communicate with an exchange module to operate a trading exchange to allow for the exchange of one or more debt instruments; 
 automatically generate electronic signals to cause time period and payment information entries about one or more debt instruments of a debt portfolio to be displayed in respective column structures at a first window of a graphical user interface of a computing device of a user; 
 automatically generate electronic signals to cause graphical interactive slider selection objects to be displayed to overlap the time period and payment information entries on the first window, the graphical slider selection objects to allow the user of the computing device to adjust the graphical interactive slider selection objects to select one or more time period and payment information entries; 
 in response to the selection from the first window, receive first electronic data comprising information about a debt instrument portfolio comprising one or more debt instruments, the information comprising, for each debt instrument, a price associated with the debt instrument in at least one database electronically coupled to the at least one processor; 
 determine, based on information stored in the at least one database, a current value for each of the one or more debt instruments; 
 determine, based on information stored in the at least one database, a payment schedule for each of the one or more debt instruments, each payment schedule comprising one or more payments, each payment schedule correlating a series of payment amounts with respective scheduled times of payment; 
 determine a probability of payment for the one or more payments for each of the one or more debt instruments; 
 after determining a probability of payment for the one or more payments for each of the one or more debt instruments, determine a portfolio cash flow rating of the debt instrument portfolio based on:
 (1) the current value of each of the one or more debt instruments; and 
 (2) the probability of payment for the one or more payments of each debt instrument; and 
 
 automatically generate electronic signals to cause information about the portfolio cash flow rating to be displayed at a second window of the graphical user interface of the computing device. 
   
     
     
         3 . The apparatus of  claim 2 ,
 in which the one or more debt instruments comprises a plurality of debt instruments,   in which the information comprises, for each debt instrument, a quantity of the debt instrument,   in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining a portfolio cash flow rating of the debt instrument portfolio further based on the quantity of each of the one or more debt instruments,   in which the instructions, when executed by the at least one processor, further direct the at least one processor to determine an expected net present value of the one or more payments, and   in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining a portfolio cash flow rating of the debt instrument portfolio based on the expected net present value of the one or more payments of each debt instrument.   
     
     
         4 . The apparatus of  claim 2 , in which the current value of each respective debt instrument comprises a net investment amount, the net investment amount comprising an amount determined based on one or more amounts paid for the debt instrument by a current owner of the debt instrument less an amount based on any payments received on the debt instrument. 
     
     
         5 . The apparatus of  claim 4 , in which the net investment amount comprises an amount based on the net present value of any amounts paid by the current owner for the one or more debt instruments less an amount based on the net present value of any payments received on the one or more debt instruments. 
     
     
         6 . The apparatus of  claim 2 , in which the information about a debt instrument portfolio comprises, for each debt instrument, a par value of the debt instrument, in which the act of determining by the at least one processor a portfolio cash flow rating of the debt instrument portfolio is further based on the par value of each debt instrument. 
     
     
         7 . The apparatus of  claim 2 , in which the act of determining a probability of payment for the one or more payments based on a determined market price for at least one of the one or more payments comprises:
 determining a market price for a specific one of the one or more debt instruments;   determining a futures price for the specific one of the one or more debt instruments, the futures price corresponding to a price after a specific payment on the specific debt instrument; and   determining a current value for the specific payment based on the market price for the specific debt instrument and the futures price for the specific debt instrument.   
     
     
         8 . The apparatus of  claim 2 , in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining the portfolio cash flow rating of the debt instrument portfolio based on an initial credit rating for each of the one or more debt instruments, each initial credit rating being determined for an issuer of the corresponding debt instrument before an issuance of the corresponding debt instrument. 
     
     
         9 . The apparatus of  claim 2 , in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining the portfolio cash flow rating of the debt instrument portfolio based on a current credit rating for each of the one or more debt instruments, each current credit rating being determined for an issuer of the corresponding debt instrument. 
     
     
         10 . The apparatus of  claim 2 , in which the current value associated with each of the one or more debt instruments comprises a value determined based on a price at which a current owner purchased each respective debt instrument. 
     
     
         11 . The apparatus of  claim 2 , in which the current value for each debt instrument comprises a current market price for each respective debt instrument. 
     
     
         12 . The apparatus of  claim 2 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to determine one or more hedge securities that would improve the cash flow rating of the debt instrument portfolio if the one or more hedge securities were added to the debt instrument portfolio. 
     
     
         13 . The apparatus of  claim 12 , in which the instructions, when executed by the at least one processor, further direct the at least one processor to:
 purchase the one or more hedge securities in one or more quantities determined by the at least one processor;   prompt a user to identify one or more discretionary assets in the debt instrument portfolio;   sell at least one of the discretionary assets in exchange for an amount of proceeds; and   purchase at least one of the hedge securities using at least a portion of the amount of proceeds,   in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining a portfolio cash flow rating of the debt instrument portfolio further based on a determined net present value of each debt instrument.   
     
     
         14 . A method, comprising:
 communicating, by at least one processor of at least one computer in electronic communication with at least one other computer via an electronic communications network, with an account module to generate a user account comprising one or more debt instruments to determine a cash flow rating, wherein the user account comprises a financial account based on user's holdings derived from the user's order book;   automatically communicating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, with a user preferences module to automatically determine user preferences concerning one or more payments and/or debt instruments, wherein the preferences are automatically received from an automated user terminal;   communicating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, using a schedule module with a database of an electronic exchange over the electronic communication network to determine a schedule of payments for one or more debt instruments;   communicating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, with a parameters module to determine parameters for one or more debt instruments   communicating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, with an instrument module to search one or more debt instrument based on the parameters;   communicating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, with an exchange module to operate a trading exchange to allow for the exchange of one or more debt instruments;   automatically, by at least one processor of at least one computer in electronic communication with at least one other computer via an electronic communications network, generating electronic signals to cause time period and payment information entries about one or more debt instruments of a debt portfolio to be displayed in respective column structures at a first window of a graphical user interface of a computing device of a user;   automatically, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, generating electronic signals to cause graphical interactive slider selection objects to be displayed to overlap the time period and payment information entries on the first window, the graphical slider selection objects to allow the user of the computing device to adjust the graphical interactive slider selection objects to select one or more time period and payment information entries;   in response to the selection from the first window, receiving, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, first electronic data comprising information about a debt instrument portfolio comprising one or more debt instruments, the information comprising, for each debt instrument, a price associated with the debt instrument in at least one database electronically coupled to the at least one processor;   determining, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, based on information stored in the at least one database, a current value for each of the one or more debt instruments;   determining, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, based on information stored in the at least one database, a payment schedule for each of the one or more debt instruments, each payment schedule comprising one or more payments, each payment schedule correlating a series of payment amounts with respective scheduled times of payment;   determining, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, a probability of payment for the one or more payments for each of the one or more debt instruments;   after determining a probability of payment for the one or more payments for each of the one or more debt instruments, determining, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, a portfolio cash flow rating of the debt instrument portfolio based on:
 (1) the current value of each of the one or more debt instruments; and 
 (2) the probability of payment for the one or more payments of each debt instrument; and 
   automatically generating, by the at least one processor of the at least one computer in electronic communication with the at least one other computer via the electronic communications network, electronic signals to cause information about the portfolio cash flow rating to be displayed at a second window of the graphical user interface of the computing device.   
     
     
         15 . A non-transitory machine-readable medium having instructions stored thereon that are configured to, when executed, direct at least one processor of at least one computer in electronic communication with at least one other computer to:
 communicate with an account module to generate a user account comprising one or more debt instruments to determine a cash flow rating, wherein the user account comprises a financial account based on user's holdings derived from the user's order book;   automatically communicate with a user preferences module to automatically determine user preferences concerning one or more payments and/or debt instruments, wherein the preferences are automatically received from an automated user terminal;   communicate using a schedule module with a database of an electronic exchange over the electronic communication network to determine a schedule of payments for one or more debt instruments;   communicate with a parameters module to determine parameters for one or more debt instruments   communicate with an instrument module to search one or more debt instrument based on the parameters;   communicate with an exchange module to operate a trading exchange to allow for the exchange of one or more debt instruments;   automatically generate electronic signals to cause time period and payment information entries about one or more debt instruments of a debt portfolio to be displayed in respective column structures at a first window of a graphical user interface of a computing device of a user;   automatically generate electronic signals to cause graphical interactive slider selection objects to be displayed to overlap the time period and payment information entries on the first window, the graphical slider selection objects to allow the user of the computing device to adjust the graphical interactive slider selection objects to select one or more time period and payment information entries;   in response to the selection from the first window, receive first electronic data comprising information about a debt instrument portfolio comprising one or more debt instruments, the information comprising, for each debt instrument, a price associated with the debt instrument in at least one database electronically coupled to the at least one processor;   determine, based on information stored in the at least one database, a current value for each of the one or more debt instruments;   determine, based on information stored in the at least one database, a payment schedule for each of the one or more debt instruments, each payment schedule comprising one or more payments, each payment schedule correlating a series of payment amounts with respective scheduled times of payment;   determine a probability of payment for the one or more payments for each of the one or more debt instruments;   after determining a probability of payment for the one or more payments for each of the one or more debt instruments, determine a portfolio cash flow rating of the debt instrument portfolio based on:
 (1) the current value of each of the one or more debt instruments; and 
 (2) the probability of payment for the one or more payments of each debt instrument; and 
   automatically generate electronic signals to cause information about the portfolio cash flow rating to be displayed at a second window of the graphical user interface of the computing device.   
     
     
         16 . The non-transitory machine-readable medium of  claim 15  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 determine an expected net present value of the one or more payments, and 
 in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining a portfolio cash flow rating of the debt instrument portfolio based on the expected net present value of the one or more payments of each debt instrument. 
 
     
     
         17 . The non-transitory machine-readable medium of  claim 15  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 determine a probability of payment for the one or more payments based on a determined market price for at least one of the one or more payments comprises: 
 determine a market price for a specific one of the one or more debt instruments; 
 determine a futures price for the specific one of the one or more debt instruments, the futures price corresponding to a price after a specific payment on the specific debt instrument; and 
 determine a current value for the specific payment based on the market price for the specific debt instrument and the futures price for the specific debt instrument. 
 
     
     
         18 . The non-transitory machine-readable medium of  claim 15  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 determine the portfolio cash flow rating of the debt instrument portfolio based on an initial credit rating for each of the one or more debt instruments, each initial credit rating being determined for an issuer of the corresponding debt instrument before an issuance of the corresponding debt instrument. 
 
     
     
         19 . The non-transitory machine-readable medium of  claim 15  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 determine the portfolio cash flow rating of the debt instrument portfolio based on a current credit rating for each of the one or more debt instruments, each current credit rating being determined for an issuer of the corresponding debt instrument. 
 
     
     
         20 . The non-transitory machine-readable medium of  claim 15  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 determine one or more hedge securities that would improve the cash flow rating of the debt instrument portfolio if the one or more hedge securities were added to the debt instrument portfolio. 
 
     
     
         21 . The non-transitory machine-readable medium of  claim 20  having instructions stored thereon that are configured to, when executed, direct the at least one processor of the at least one computer in electronic communication with the at least one other computer to:
 purchase the one or more hedge securities in one or more quantities determined by the at least one processor; 
 prompt a user to identify one or more discretionary assets in the debt instrument portfolio; 
 sell at least one of the discretionary assets in exchange for an amount of proceeds; and 
 purchase at least one of the hedge securities using at least a portion of the amount of proceeds, 
 in which the act of determining a portfolio cash flow rating of the debt instrument portfolio comprises determining a portfolio cash flow rating of the debt instrument portfolio further based on a determined net present value of each debt instrument.