Method For Structuring A Transaction
AssigneeGoldman, Sachs & Co.
InventorJames Takeshi Sugahara
Life of this patent
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Abstract
In one embodiment the present invention relates to a method for structuring a transaction involving a first party having a long position in a security and a second party desiring to acquire short exposure to the security. In one example an agent or intermediary acts between the first party and the second party. In another example the first party and the second party deal directly with one another.
Claims22
1-21. (canceled)
A method for structuring a transaction carried out among a first party, a second party, and a third party, comprising:
- arranging a first agreement between the first party and the second party, wherein the first agreement:
- i) obligates the first party to sell a security to the third party;
- ii) obligates the second party to pay a first in-lieu-of dividend to the first party;
- iii) requires the first periodic marking of the security sold by the first party to market;
- and
- iv) obligates the first party to unwind the sale of the security to the third party;
- and
- arranging a second agreement between the second party and the third party, wherein the second agreement:
- i) obligates the third party to pay a second in-lieu-of dividend to the second party;
- ii) requires the second periodic marking of the security sold by the first party to market;
- and
- iii) obligates the third party to unwind the sale of the security made by the first party.
A method for structuring a transaction carried out among a first party, a second party, and a third party, comprising:
- obligating the first party to sell a security to the third party;
- obligating the second party to pay a first in-lieu-of dividend to the first party;
- requiring the first periodic marking of the security sold by the first party to market;
- obligating the third party to pay a second in-lieu-of dividend to the second party;
- requiring the second periodic marking of the security sold by the first party to market;
- obligating the first party and the third party to unwind the sale of the security made by the first party;
- and
- obligating the first party to make a first payment to the second party and obligating the second party to make a second payment to the third party.
(canceled)
A method for structuring a transaction, comprising:
- obligating a first party to sell a security to a second party;
- obligating the second party to pay an in-lieu-of dividend to the first party;
- periodically marking the security sold by the:
- first party to market by periodically making a marking payment from the:
- first party to the second party or from the second party to the first party,
- depending upon the price of the security at the time the security is marked-to-market;
- and
- obligating the first party and the second party to unwind the sale of the security by obligating the first party to repurchase the security from the second party;
- wherein short exposure to the security is provided to the second party based upon the sale of the security by the first party.
Dependencies are inferred from the claim text.