News Column

Patent Issued for Creation and Trading of Multi-Obligor Credit Default Swap-Backed Securities

June 4, 2014

By a News Reporter-Staff News Editor at Journal of Engineering -- According to news reporting originating from Alexandria, Virginia, by VerticalNews journalists, a patent by the inventors Fairweather, Michael (Larchmont, NY); MacWilliams, Richard K. (New Orleans, LA); McQuown, John Andrew (Sonoma, CA), filed on June 29, 2012, was published online on May 20, 2014.

The assignee for this patent, patent number 8732068, is eBond Advisors LLC (New York, NY).

Reporters obtained the following quote from the background information supplied by the inventors: "Embodiments of the present invention relate generally to investment vehicles, and, more particularly, to multi-obligor securities and credit default swaps.

"U.S. patent application Ser. Nos. 12/703,073, 12/839,218, and 13/295,420, incorporated by reference above, disclose the formation of a new investment vehicle termed an 'enhanced bond' or 'eBond,' among other things. The approaches provided therein for the formation of eBonds can be extended and applied to the creation of other new investment vehicles that will allow investors to represent other, more complex positions with a single investment."

In addition to obtaining background information on this patent, VerticalNews editors also obtained the inventors' summary information for this patent: "Embodiments of the invention include a method comprising purchasing, by one or more computing devices, a credit default swap contract on an exchangeable security, wherein the exchangeable security is comprised of multi-obligor financial instruments, instructing, by the one or more computing devices, a trustee to exchange the exchangeable security for a separate single enhanced security that is a combination of the exchangeable security and the credit default swap contract, and deliver the enhanced security to an investor, and delivering, by the one or more computing devices, the credit default swap contract to an account held at a clearing member.

"Further features and advantages of the invention, as well as the structure and operation of various embodiments of the invention, are described in detail below with reference to the accompanying drawings. It is noted that the invention is not limited to the specific embodiments described herein. Such embodiments are presented herein for illustrative purposes only. Additional embodiments will be apparent to persons skilled in the relevant art(s) based on the teachings contained herein."

For more information, see this patent: Fairweather, Michael; MacWilliams, Richard K.; McQuown, John Andrew. Creation and Trading of Multi-Obligor Credit Default Swap-Backed Securities. U.S. Patent Number 8732068, filed June 29, 2012, and published online on May 20, 2014. Patent URL:

Keywords for this news article include: eBond Advisors LLC.

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Source: Journal of Engineering

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