Abstract: A method for efficient first mortgage loans including the steps of identifying suitable borrowers for a marginally priced mortgage loan, determining an aggregate asset value of property owned by the suitable borrowers, determining a capital structure of the marginally priced mortgage loan for the respective property as between debt and equity, tranching the debt capital structure into a plurality of debt tranches, wherein lowest loan to value tranches have seniority over higher loan to value tranches, assigning each tranche an interest rate based upon a plurality of criteria including probability of default, correlation of default, and credit market conditions, creating a structured note which provides legal rights for each such tranche in a bankruptcy remote issuance entity and securitization or sale of such structured notes to investors.

Abstract: A method and system for debt-to-asset-value balancing of a reverse mortgage benefiting both the lender and the borrower. Options and mechanisms are provided for equalizing borrower debt balance with appraised fixed assets of the reverse mortgage.

Abstract: Methods for providing remainder interests with protection to a seller and mitigation of the potential consequences suffered by related financial instruments. The protected remainder interest financial instrument includes submitting a seller to underwriting to accurately determine the seller's remaining life expectancy, and purchasing the protected remainder interest of an illiquid asset from the seller leaving the seller with a life estate. The method includes a client system for displaying information related to the transaction and inputting information related to the seller, illiquid asset, and the buyer. The client system is used to create a request to create the protected remainder interest. A server system accepts the request, stores the information in memory, and creates the protected remainder interest.

Abstract: This invention provides methods and systems for trading and investing in groups of demand-based adjustable-return contingent claims, and for establishing markets and exchanges for such claims. (FIG. 2, item 262, 263, 264, 265) The advantages of the present invention, as applied to the derivative securities and similar financial markets, include increased liquidity, reduced credit risk, improved information aggregation, increased price transparency, reduced settlement or clearing costs, reduced hedging costs, reduced model risk, reduced event risk, increased liquidity incentives, improved self-consistency, reduced influence by market makers, and increased ability to generate and replicate arbitrary payout distributions.

Abstract: This invention provides methods and systems for the efficient securitization and risk management of life settlement contracts. The advantages of the present invention include the ability to create securities derived from diverse pools of life insurance related obligations by managing, disaggregating, and recombining the risks of the underlying life insurance obligations into newly created securities of high credit quality termed Collateralized Life Settlement Obligations (“CLSO”), which can then be offered for sale or as collateral for repurchase (repo) transactions thereby facilitating an efficient and low-cost source of capital for acquiring the underlying life insurance related obligations.

Abstract: This invention provides systems, methods, and designs for a novel financial product which provides many lifecycle investment advantages compared to existing state of the art products currently available.

Abstract: This invention provides methods and systems for trading and investing in groups of demand-based adjustable return (“DBAR”) contingent claims, including digital options, and for establishing markets and exchanges for such claims. The advantages of the present invention, as applied to the establishment and operation of a DBAR digital options exchange, include the ability to offer investments whose profit and loss scenarios are comparable to those for digital options or other derivatives in traditional securities markets, without the need for options or derivatives sellers or order-matching of conventional markets. A DBAR digital options exchange of the present invention can also offer conditional investments, or limit orders, in which an investment in a state of a DBAR contingent claim (such as the price of an underlying asset or index) can be executed or withdrawn in response to the implied probability of the occurrence of that state.

Abstract: This invention provides systems, methods, and designs for two novel life insurance products which provide many lifecycle investment advantages compared to existing state of the art products currently available.

Abstract: This invention enables donations of life insurance proceeds to beneficiaries, such as individuals, for-profit entities, and/or non-profit entities, such as universities and colleges, at no cost to the donors. The life insurance policies are held in trust and funded by endowment investment funds. Alternatively, loans collateralized with life insurance policies held by life insurance trusts, are taken by the life insurance trusts from lenders to purchase annuities that provide annuity payments to the trusts for the life of the donors. The annuity payments finance the loans and the life insurance policies and are insured by reinsurance companies for the life of each donor. Investment funds invest in the lender and/or the reinsurance company. The proceeds or death benefits of the life insurance policies are allocated, in part, to compensate and provide a return on the funding or financing of the life insurance policy, and in part, to the beneficiary.

Abstract: This invention enables donations to nonprofits, such as universities and colleges, at minimal or no cost to the donors. A nonprofit holds life insurance policies on the lives of consenting donors. The nonprofit assigns the death benefits of the policies to a financial benefactor and acquires an ownership interest in the financial benefactor, entitling the nonprofit to a portion of periodic payments by the financial benefactor from assets of the financial benefactor. The assets include the cash value of the policies and annuities purchased by the financial benefactor with invested funds or purchased by equity partners to the nonprofit, providing annuity payments for the measured lives of the donors. Portions of the periodic payments are distributed to the nonprofit and to the investors. Remaining portions of the periodic payments can cover premium payments, or be distributed to other investors providing other invested funds, e.g., from debt financing, to cover the premium payments.

Abstract: Methods and systems for engaging in enhanced parimutuel wagering and gaming. In one embodiment, different types of bets can be offered and processed in the same betting pool on an underlying event, such as a horse or dog race, a sporting event or a lottery, and the premiums and payouts of these different types of bets can be determined in the same betting pool, by configuring an equivalent combination of fundamental bets for each type of bet, and performing a demand-based valuation of each of the fundamental bets in the equivalent combination. In another embodiment, bettors can place bets in the betting pool with limit odds on the selected outcome of the underlying event. The bets with limit odds are not filled in whole or in part, unless the final odds on the selected outcome of the underlying event are equal to or greater than the limit odds.

Abstract: This invention provides methods and systems for the efficient securitization and risk management of life settlement contracts. The advantages of the present invention include the ability to create securities derived from diverse pools of life insurance related obligations by managing, disaggregating, and recombining the risks of the underlying life insurance obligations into newly created securities of high credit quality termed Collateralized Life Settlement Obligations (“CLSO”), which can then be offered for sale or as collateral for repurchase (repo) transactions thereby facilitating an efficient and low-cost source of capital for acquiring the underlying life insurance related obligations.

Abstract: Methods and systems for trading and replicating contingent claims, such as derivatives strategies, in a demand-based auction are described. In one embodiment, a set of demand-based claims, each of which can be a vanilla option or a digital option, approximate or replicate the contingent claim into a vanilla replicating basis or a digital replicating basis, and the order for the contingent claim is then evaluated or processed in the demand-based auction. In another embodiment, a plurality of strikes and a plurality of replicating claims are established for a demand-based auction on an event, one or more replicating claims striking at each of the strikes in the auction. A contingent claim, such as a derivatives strategy, is replicated with a replication set that includes one or more of the replicating claims in the auction. The equilibrium price and/or the payout for the derivatives strategy is determined as a function of the demand-based valuation of each of the replicating claims in the replication set.

Abstract: Methods and systems for replicating derivatives strategies and for trading derivatives strategies in a demand-based trading market are described. In one embodiment, a set of contingent claims are created to replicate a derivatives strategy. One or more parameters of a contingent claim in the replication set may be determined as a function of one or more parameters of a derivatives strategy and an outcome of the event. An investment amount for a contingent claim in the replication set may be determined as a function of one or more parameters of the contingent claim and a total amount invested in a demand-based auction. In other embodiments, derivatives strategies and/or financial products are enabled to be traded in a demand-based auction and are offered to customers and/or traded in the auction.

Abstract: Methods and systems for conducting demand-based trading are described. In one embodiment, states are established, each state corresponding to at least one possible outcome of an event of economic significance. An investment amount may be determined as a function of a selected outcome, a desired payout, and a total amount invested in the states. In another embodiment, an investment amount may be determined as a function of parameters of a financial product. In another embodiment, a payout may be determined as a function of an investment amount, a selected outcome, a total amount invested in the states, and an identification of a state corresponding to an observed outcome of the event.

Abstract: This invention provides methods and systems for trading and investing in groups of demand-based adjustable return (“DBAR”) contingent claims, including digital options, and for establishing markets and exchanges for such claims. The advantages of the present invention, as applied to the establishment and operation of a DBAR digital options exchange, include the ability to offer investments whose profit and loss scenarios are comparable to those for digital options or other derivatives in traditional securities markets, without the need for options or derivatives sellers or order-matching of conventional markets. A DBAR digital options exchange of the present invention can also offer conditional investments, or limit orders, in which an investment in a state of a DBAR contingent claim (such as the price of an underlying asset or index) can be executed or withdrawn in response to the implied probability of the occurrence of that state.

Abstract: This invention provides methods and systems for trading and investing in groups of demand-based adjustable-return contingent claims, and for establishing markets and exchanges for such claims.