44 results about "Credit enhancement" patented technology

Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumer's spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. The likelihood of default determined by the SOW model, when applied to a loan portfolio, can reduce the amount of credit enhancement required for an asset-backed securities rating.

The disclosed systems and methods for hedging risk of differential loss related to separate pools of loan investments use criteria established by the parties for hedging risk of differential loss rates. The system monitors indirect performance indicators for a Reference Pool and a Subject Pool of loans, compares the indicators, and calculates a payment due between the parties (if any) based on performance differences for the two pools and a payment formula. Any payment due is paid according to a pre-established payment cycle. The loan pools may be formed and adjusted based on various factors, such as to compensate for changes in one of the pools. The payment formula may also be adjusted to compensate for changes or differences in the loan pools. The system may hedge either party's credit loss related to the Subject Pool if its loans perform differently than the loans in the Reference Pool.

Share of Wallet (“SoW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumer's spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. The likelihood of default determined by the SoW model, when applied to a loan portfolio, can reduce the amount of credit enhancement required for an asset-backed securities rating.

A method and system for settling a transaction with trade credit value which makes use of computer hardware and software, allows Members of a trade credit settlement system to transfer electronic instruments, called trade credits, in exchange for goods and services. These trade credits are effectively electronic bills of exchange that are divisible, transferable, discountable, continuously available and have been credit-enhanced to A / P1 status. Sponsors facilitate the system by registering buyers and suppliers as Members in the system and offering them operational accounts and drawdown accounts with authorized lines of credit. A Member-buyer approves the purchase invoice of a Member-supplier and authorizes the Sponsor to transfer trade credit value from the Member-buyer's operational and / or drawdown account into the operational account of the Member-supplier. The trade credit value received by the Member-supplier can be held in the Member-supplier's operational account until it matures, or discount it to cash before it matures, or transfer it to other Members for the purchase of goods or services.

In accordance with the present invention, a financial instrument for the energy market is created. The financial instrument comprises a derivative instrument related to accounts receivable or accounts payable or both. In a preferred embodiment, the derivative instrument normally consists of two sets of linked swaps. In the first set, the seller exchanges two things with a third party: (i) the right for payment of accounts receivable within a month from the buyer is exchanged for the right to payment of such accounts receivable within a week from the third party; and (ii) the obligation to deliver energy to the buyer is exchanged for the obligation to deliver to the third party. The buyer exchanges the mirror image of those with a third party, to with: (i) the obligation to pay within a month to the seller is exchanged for the obligation to pay within a week to the third party, but the buyer receives financing to offset the cash flow ramifications; and (ii) the obligation to take delivery from the seller is exchanged with the obligation to take delivery from the third party. The swap can further be utilized to net payment obligations under multiple cash and forward commodity transactions between the buyer and the seller. Physical collateral is utilized as margin. In accordance with another aspect of the present invention, the process takes place on a ‘clearing platform’ for such energy transactions.

Embodiments consistent with the present invention provide a credit enhancement structure for risk allocation between parties that minimizes the regulatory capital reserve requirement impact to an institution subject to capital reserve requirement. A subject pool of assets held by the institution, such as a pool of loans, is rated to determine its risk levels. Based on the rated risk levels, a guarantor party agrees to be responsible for a portion of the risk associated with the pool of assets, which may define the maximum risk exposure of the institution holding the asset pool. The risk-rated capital reserve requirements are applied to the asset pool based on the risk level rating and the guarantor's agreed upon risk responsibility such that the institution holds a reduced amount of reserve capital compared to what it would otherwise be required to hold.

The debt issuance of a company are credit enhanced via an investment platform wherein the company's issuances and investments are both subject to a master netting agreement between common counterparties, thereby creating a fully hedged transaction with an investible present value monetization of the future income stream for purposes of reinvesting. The Investment Platform comprises a proprietary Cross Settlement, Credit Enhancement, Risk-Mitigation and Netting System that has a hedged investment structure that automatically qualifies for credit enhancement wherein non-investment grade debt issuances can be transformed into investment grade debt issuances. The Investment Platform is powered by a proprietary investment algorithm and make-whole algorithm that matches movements in a selected benchmark rate or indices. It provides a matched supply of capital to reinvest as the core of the structure recycles the investment capital by a method of monetizing the future income stream, while simultaneously matching and hedging the investment.

A certificate of deposit (“CD”) portfolio system and method to attract institutional investors through dealers to CD issuing small to medium sized community deposit taking institutions. The central entities of the system include a system operator and a system clearing house. The system operator contacts and signs up the institutions to become a part of the system. These institutions are community banks that are too small to individually attract institutional investors. It also contacts and signs up dealers and then unitizes FDIC insured CD's into single investment instrument portfolios which the dealers then market to their institutional investor clientele. The clearing house is in communication with the system operator, the institutions and the dealers to act as an agent facilitating transactions by issuing the CD's, handling funds, settling transactions, and acting as custodian / trustee for all transactions. The invention includes a system operator controlled internet website to provide access to information to for the use of CD issuing banks, the system clearing house, the system operator and the dealers. In effect the invention creates a meeting place for small banks to pool their FDIC insured CD's together into single investment instrument portfolios large enough to attract institutional investors at favorable interest rates because of the credit enhancement resulting from full FDIC insurance of the portfolio. This is achieved because the system and method prevent exceeding the $100,000.00 FDIC insurance limit per investor per bank.

The invention discloses a service recommendation method oriented to a service supply chain network. Firstly, a transfer matrix is ​​constructed based on the link relationship between all nodes in the service supply chain network, and the reputation values ​​of all nodes are calculated according to the transfer matrix; and then two-two nodes are calculated. The similarity between reputation enhancements is used to construct the neighbors of all nodes; finally, for users who need recommended services, predict the service quality evaluation value of the user for the required service according to the neighbors of the corresponding nodes, and recommend high service quality evaluation values ​​to them services. The service recommendation method of the present invention can successfully predict the user's service quality evaluation value for the required service when the historical data is insufficient or some nodes do not have historical data, and overcomes the data sparsity and cold start existing in the existing collaborative filtering technology problem, improving the accuracy of service recommendation.

A mortgage-backed securities (MBS) processing system including a processor, a database and a computer-readable memory. The database is configured to store data pertaining to multiple mortgage-backed securities, each mortgage-backed security associated with at least one loan. The computer-readable memory includes computer-readable instructions. When the computer-readable instructions are executed on the processor to associate the multiple mortgage-backed securities stored in the database with a set of different MBS indices based on MBS indexing rules. The MBS indexing rules map a given mortgage-backed security to a given MBS index based at least in part on the credit enhancement type associated with the given mortgage-backed security.