Funding Loans Through the Short Sale of Yield Bearing Assets

摘要

A system and method are provided for funding loans. The method includes selling US Treasury securities (or other yield bearing assets) short and using the proceeds of the short sale to fund a loan to a borrower. The system includes a feature to aggregate and database securities available to sell short along with pertinent information about those securities. The system compares a proposed loan's cash flows to the cash flows of securities available to sell short. The system uses cash flow matching algorithms to construct a portfolio of securities to sell short to fund a loan. The system had the ability to effect the execution of transactions to sell securities short once included in a portfolio of securities to fund a loan. An option allows for multiple loans to be aggregated for the purpose of cash flow matching with securities to sell short.