Patent ID: 8275686

Claim:
A computer-implemented method for estimating risk in financial transactions, comprising: receiving, in a processor, information defining an industry average interest rate used by banks for short term funding and a principal benchmark for a floating rate interest payments for tax-exempt issuers associated with a transaction, the information including respective rate settings and a current swap spread difference between a percentage of the industry average interest rate and the principal benchmark; inputting, through a user interface to the processor, discount rates confirmed by a user to be used by the processor; using the confirmed discount rates to populate one or more discount rate tables stored in a memory operatively coupled to the processor; producing, via the processor, an analysis at least comprising calculating value at risk (VAR) and one or more risk-return metrics for the transaction using the current swap spread difference; generating, via the processor, a discount curve for the transaction, wherein the VAR includes a measurement of risk based on the inputted discount rates and the discount rate tables; and outputting, from the processor, an analysis result to the user.