DEBT SECURITY HAVING RETURN INVERSELY RELATED TO ASSOCIATED SECURITY
According to some implementations, a method comprises creating a debt security, wherein the debt security has a creation date and a maturity date, further wherein the debt security is associated with at least one security; issuing the debt security with a principal amount; and determining a rate of return for the debt security at the maturity date, wherein the rate of return for the debt security is inversely related to a rate of return of the associated at least one security between the creation date and the maturity date. According to some implementations, an exchange traded note comprises at least one associated security; and a rate of return, wherein the rate of return for the exchange traded note is inversely related to a rate of return of the associated at least one security between a creation date and a maturity date.
1 . A method comprising:
creating a debt security, wherein the debt security has a creation date and a maturity date, further wherein the debt security is associated with at least one security;
issuing the debt security with a principal amount; and
determining a rate of return for the debt security at the maturity date, wherein the rate of return for the debt security is inversely related to a rate of return of the associated at least one security between the creation date and the maturity date.
2 . The method of claim 1 , further comprising paying a holder of the debt security an amount of money equivalent to the principal amount of the debt security plus the principal amount times the rate of return of the debt security.
3 . The method of claim 1 , further comprising paying a holder of the debt security an amount of money equivalent to the principal amount of the debt security plus the principal amount times the rate of return of the debt security minus a fee.
4 . The method of claim 3 , wherein the fee is proportional to the rate of return of the debt security.
5 . The method of claim 3 , wherein the fee is proportional to the principal amount of the debt security.
6 . The method of claim 3 , wherein the fee is a fixed fee.
7 . The method of claim 1 , wherein the rate of return of the at least one security is negative.
8 . The method of claim 1 , wherein the debt security is an Exchange Traded Note.
9 . The method of claim 1 , wherein the difference between the creation date and the maturity date is one of 1 day, 1 week, 1 month, 1 year, and 30 years.
10 . The method of claim 1 , wherein the rate of return for the debt security is inversely related to the rate of return of the associated at least one security between the creation date and the maturity date times a multiplier.
11 . The method of claim 10 , wherein the multiplier is greater than one.
12 . The method of claim 1 , wherein the at least one security is a stock.
13 . The method of claim 12 , wherein the stock is on the Hard-to-Borrow list.
14 . The method of claim 1 , wherein the debt security is traded on a securities exchange.
15 . An exchange traded note comprising:
at least one associated security; and
a rate of return, wherein the rate of return for the exchange traded note is inversely related to a rate of return of the associated at least one security between a creation date and a maturity date.