Abstract: Disclosed herein is a system and method for eliminating or transferring the non-economic risk of financial securities. The system and method serves to avoid non-economic losses in the first instance, and to counter the adverse capital impact of prior non-economic gap losses by providing capital relief consistent with a determined protected amount. A second party provides to a first party a policy covering potential losses in value for a fixed income securities (FIS) Portfolio, particularly losses between an upper attachment value and a lower exit value. The second party provides capital to the first party as a policy security in the event that the aggregate principle payments (APP) of the FIS Portfolio are less than the attachment value and the first party makes a claim under the policy.