Methods and systems for providing partially redeemable offering notes
In one aspect, the invention comprises a method comprising: (a) creating a partially redeemable offering note; (b) pricing the note; (c) issuing the note; and (d) redeeming the note. In another aspect, the invention comprises a method comprising: (a) buying a partially redeemable offering note issued by an issuer; and (b) receiving a first payment from the issuer for a first fraction between 0 and 1 of a notional amount of the note. In another aspect, the invention comprises a note with terms comprising: (a) a notional amount; (b) a schedule of two or more redemption dates; and (c) options for redeeming a percentage of the notional amount on at least two of the two or more redemption dates.
1 . A method comprising:
creating a partially redeemable offering note;
pricing said note;
issuing said note; and
redeeming said note.
2 . A method as in claim 1 , wherein said partially redeemable offering note has an option for redeeming a fixed percentage of a notional amount of said note on a periodic basis.
3 . A method as in claim 2 , wherein said periodic basis is an annual basis.
4 . A method as in claim 2 , wherein said fixed percentage is less than 100%.
5 . A method as in claim 1 , wherein said partially redeemable offering note has an option for redeeming a variable percentage of a notional amount of said note on a periodic basis.
6 . A method as in claim 5 , wherein said periodic basis is an annual basis.
7 . A method as in claim 5 , wherein said variable percentage is less than 100%.
8 . A method as in claim 1 , wherein said pricing is based on Bermuda option pricing.
9 . A method as in claim 1 , wherein said pricing is based on a tree-based model using a backward-induction algorithm.
10 . A method as in claim 1 , wherein said redeeming is a first partial redeeming for a first fraction between 0 and 1 of a notional amount of said note at a first time.
11 . A method as in claim 1 , wherein said redeeming is a second partial redeeming for a second fraction between 0 and 1 of a notional amount of said note at a second time, and wherein said second fraction is less than or equal to the difference between said first fraction and 1.
12 . A method comprising:
buying a partially redeemable offering note issued by an issuer; and
receiving a first payment from said issuer for a first fraction between 0 and 1 of a notional amount of said note.
13 . A method as in claim 12 , wherein said partially redeemable offering note has an option for redeeming a fixed percentage of said notional amount of said note on a periodic basis.
14 . A method as in claim 13 , wherein said periodic basis is an annual basis.
15 . A method as in claim 13 , wherein said fixed percentage is less than 100%.
16 . A method as in claim 12 , wherein said partially redeemable offering note has an option for redeeming a variable percentage of said notional amount of said note on a periodic basis.
17 . A method as in claim 16 , wherein said periodic basis is an annual basis.
18 . A method as in claim 16 , wherein said variable percentage is less than 100%.
19 . A method as in claim 12 , wherein said note is priced based on Bermuda option pricing.
20 . A method as in claim 12 , wherein said note is priced based on a tree-based model using a backward-induction algorithm.
21 . A method as in claim 12 , further comprising receiving a second payment for a second fraction between 0 and 1 of said notional amount of said note, and wherein said second fraction is less than or equal to the difference between said first fraction and 1.
22 . A note with terms comprising:
a notional amount;
a schedule of two or more redemption dates; and
options for redeeming a percentage of said notional amount on at least two of said two or more redemption dates.
23 . A note as in claim 22 , wherein said percentage is the same for two or more redemption dates.
24 . A note as in claim 22 , wherein said percentage varies for two or more redemption dates.
25 . A note as in claim 22 , wherein said redemption dates are spaced one year apart.
26 . A note as in claim 22 , wherein said note is priced based on Bermuda option pricing.
27 . A note as in claim 22 , wherein said note is priced based on a tree-based model using a backward-induction algorithm.