Structured finance performance monitoring index

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Contents

[edit] Patent Title

Structured finance performance monitoring index

[edit] Patent Number

US Patent 7346570

[edit] Abstract

A method for assessing and dynamically rating transactions (180) for structured finance transactions. The method assesses the deviation (170) from a payment promise to be expected from securities backed by pools of assets of various forms (100), the securities being issued in a plurality of tranches (125). The liabilities of the transaction, including triggers and external form of credit enhancement, are taken into account precisely to compute the deviation from the payment promise to be expected by liability holders. Data representing the structure of the transaction and the current state of the asset pool are received (100). A Markov chain formalism (150) is applied on the received data, and a cash flow model is constructed to predict the cash flow performance (180) of the asset pool.

[edit] Inventors

Raynes; Sylvain (Jackson Heights, NY), Rutledge; Ann Elaine (Jackson Heights, NY)

[edit] Assignee

R&R Consulting Limited (Wanchai, HK)

[edit] Filed Date

July 16, 2001

[edit] Links

Full Patent Information [1]

Financial_patents

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