Patent ID: 8195564

Claim:
A system for creating and maintaining financial assets which accentuate different types of sub-loan level risk associated with a plurality of home mortgage loans and which are configured to operate as hedges against risks that oppose the different types of sub-loan level risk, comprising: a processor configured to execute computer-executable instructions tangibly embodied on non-transitory computer readable media, the computer-executable instructions being executable by the processor to implement a decomposition tool configured to decompose each of the plurality of home mortgage loans into a plurality of sub-loan level cash flows; a repackaging tool configured to repackage the plurality of sub-loan level cash flows to form the financial assets, including: selecting a sub-combination of the plurality of sub-loan level cash flows, the sub-combination of sub-loan level cash flows comprising sub-loan level cash flows from across the plurality of home mortgage loans, and the sub-combination of sub-loan level cash flows exhibiting heightened sensitivity to at least one of the different types of sub-loan level risk relative to the sensitivity exhibited by the plurality of home mortgage loans as a whole, packaging the sub-combination of sub-loan level cash flows to create one of the financial assets, the financial asset that is created accentuating the at least one of the different types of sub-loan level risk in accordance with the heightened sensitivity exhibited by the sub-combination of sub-loan level cash flows, thereby configuring the financial asset to operate as a hedge against a risk that opposes the at least one of the different types of sub-loan level risk, and repeating the selecting and packaging steps to create additional financial assets, the additional financial assets including different financial assets which accentuate other ones of the different types of sub-loan level risk; and a graphical user interface configured to display information on a display, the information comprising indicia representative of the plurality of sub-loan level cash flows, indicia representative of the financial assets, and indicia representative of a relationship between the plurality of sub-loan level cash flows and the financial assets, including a manner in which at least some of the plurality of sub-loan level cash flows that flow into the financial assets are traceable back to one or more of the plurality of home mortgage loans.