Periodic rate reset security with a conversion feature

A computer implemented method for an issuer of a periodic rate reset security with a conversion feature (PRRSC) to issue a collateralized security comprising the steps of:

• acquiring assets including at least one of convertible debt, convertible preferred stock, and other convertible assets of several issuers, and acquiring at least one of warrants, options and associated underlying securities in addition to the convertible assets when the assets are not convertible;
• and
• issuing first securities in one of a first tranches and series, wherein said first of said tranches or series includes said PRRSC, wherein said PRRSC is over-collateralized by the assets, has one of a dividend and an interest rate determined electronically and set periodically, and is convertible into a designated underlying security;
• and
• issuing second securities in one of a second tranche and series that are subordinate to and less over-collateralized by the assets associated with the first securities of the first tranche or series.