Financial instrument providing returns as cash and accretion

In a method for obtaining capital, a convertible or exchangeable financial instrument having an accreted value and that earns returns over a lifetime comprising at least a first and a second time period is offered. During a first time period, at least some of the returns earned are paid in cash. Dur...

Full description

Saved in:
Bibliographic Details
Main Authors Fiddle, Frederick J, Kaperst, Stuart C, Rao-Kathi, Prasanth, Pepe, Paul A, Stein, Russell L, Epelbaum, Yonathan, Luciano, Richard P
Format Patent
LanguageEnglish
Published 12.07.2011
Online AccessGet full text

Cover

More Information
Summary:In a method for obtaining capital, a convertible or exchangeable financial instrument having an accreted value and that earns returns over a lifetime comprising at least a first and a second time period is offered. During a first time period, at least some of the returns earned are paid in cash. During a second time period all of the returns earned are accreted to the accreted value of the financial instrument. Returns may be earned during each period according to a rate associated with each period. The rate associated with each period may be fixed or variable and may be modified by one or more rate modifiers, such as a minimum or maximum rate. The financial instrument may include a provision describing how the instrument is serviced when the current value of a rate is negative.