Patent ID: 8538867

Claim:
A method of using a computer system to manage cash flows for a swap transaction, the method including: accessing, by a digital electrical computer, expected cash flows information corresponding to risks for time periods, the expected cash flows information calculated from respective descriptions of the risks, statistical assumptions for the risks, and financial assumptions for the risks; accessing, by the computer, actual cash flows information from occurrence of events corresponding to said risks; accounting, by the computer using said information, for a first party to the swap transaction owing the expected cash flows to a second party to the swap transaction and accounting for the second party owing the actual cash flows to the first party so as to allow computing a settlement, for each of said time periods, between the parties in the swap transaction to manage the actual cash flows and the expected cash flows; and producing, by the computer, output indicating at least one of: the first party owing to the second party, the second party owing to the first party, and the settlement.