METHOD AND APPARATUS FOR IMPLEMENTING REVOLVING ASSET-BACKED SECURITIZATIONS

摘要

An investment system that includes a revolving asset pool for holding income-bearing assets. A manager is responsible for actively managing the asset pool by purchasing and selling assets in the pool. A tax-advantaged entity such as an LLC or a partnership owns the assets in the asset pool such that income (less costs) generated by the asset pool is all paid to the investors. The manager actively manages the assets in the asset pool by ensuring that the assets are performing adequately and by reinvesting paid principal in additional assets. A portion of the capital contributed and a portion of the income generated from the assets create reserves to pay losses on the revolving asset pool with the remainder distributed to the investors. Optionally, an insurer/financial guarantor enhances the credit quality of the assets in the revolving asset pool such that the securities backed by the assets have a minimum investment grade.