RESTRUCTURED CAPITAL APPRECIATION BONDS

摘要

A computer-implemented technique restructures a capital appreciation bond (CAB) by using market data among other data to offer an incentive to a current owner of the CAB to sell voluntarily his or her bond back to the school district that issued the bond. This resold CAB is, in turn, replaced with a restructured lower cost bond, i.e., a CAB restructured bond (CRB), through a particular refinancing, computer-implemented, process referred to as bond refunding.

主权项

1. A computer-implemented method for restructuring a capital appreciation bond (CAB), comprising:
identifying and classifying a CAB candidate; estimating potential savings from said restructuring said CAB candidate, using:
an accreted value of said CAB candidate at maturity;an accreted value of said CAB candidate as of current day;a change in a price of said CAB candidate using current interest rates;a premium, when used to acquire said CAB candidate from one or more owners;interest costs associated with an associated refunding bond; andcost of issuance of said refunding bond; and issuing said refunding bond; wherein one or more steps are performed on at least a processor coupled to at least a memory.