Systems and methods for hedging against risks associated...

G - Physics – 06 – Q

Patent

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G06Q 40/00 (2006.01)

Patent

CA 2538200

Systems and methods for hedging against risks associated with distressed instruments are provided. These systems and methods are preferably directed towards providing a party wishing to protect itself from such risks with the opportunity to enter into a transaction with a provider of protection whereby such a party pays a risk protection premium to the provider of protection in exchange for the right to receive payment in the event that the value of the distressed instrument on or about maturity is below an agreed to strike price.

L'invention concerne des systèmes et des procédés de couverture contre des risques associés à des instruments en difficulté. Ces systèmes et procédés visent à donner à une partie souhaitant se protéger contre des risques, la possibilité d'entrer dans une transaction avec un prestataire de protection, ladite partie payant une prime de protection au prestataire de protection, en échange du droit de toucher un paiement dans le cas où la valeur de l'instrument en difficulté à maturité ou proche de la maturité, est inférieure à un prix d'exercice convenu.

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