Patent ID: 7650306
Filing Date: 2010-01-19
Classification: G06Q

Abstract:
1. A method, comprising: determining, using a computer, for each of at least one private issuer of fixed income securities, a correlation between inflation and a likelihood that the private issuer will default on the fixed income securities, wherein the computer comprises a processor and a memory; selecting one of the at least one private issuer based on the correlation determined for each of the at least one private issuer; purchasing, by a trustee on behalf of a trust, fixed income securities issued by the selected private issuer, wherein the fixed income securities have a first maturity date; entering into, by the trustee on behalf of the trust, an inflation swap agreement with a swap counterparty, wherein the inflation swap agreement obligates the trust to make periodic fixed payments to the swap counterparty in exchange for periodic floating payments from the swap counterparty dependent upon an inflation index; and issuing, by the trustee on behalf of the trust, inflation-linked securities to investors, wherein the inflation- linked securities comprise a principal amount and an interest rate, and wherein at least one of the principal amount and the interest rate are related to the inflation index, wherein the inflation-linked securities have a second maturity date that matches the first maturity date of the fixed income securities, and wherein the inflation-linked securities are backed by the fixed income securities of the selected private issuer so that the investors can own inflation-linked securities backed by fixed income securities of the selected private issuer, without the selected private issuer having to issue the inflation-linked securities.