CREATION AND MANAGEMENT OF ASSET GUARANTEE BONDS

摘要

Systems, methods, and computer program products which facilitate the creation and/or management of bonds with self-extinguishing elements are disclosed. In an aspect, a bond may be issued by a surety company on behalf of a principal and backed by the issuance of life insurance policies on the members of the principal. The principal may pay a bond premium comprising life insurance premiums and a management premium to the surety in lieu of paying a traditional coupon to the holders of the bond. Death benefit proceeds are payable to the surety or other managing entity who is responsible for paying the bond holders according to the terms of the bond. Upon the maturing of the bond, the asset may be sold and a predetermined amount may be given to the bond holders as principal.