Automated financial scenario modeling and analysis tool having an intelligent graphical user interface

Abstract

A financial scenario modeling and analysis tool, including a graphical user interface which enables a user of the tool to create a graphical model of a financial scenario, generally including at least one financial transaction, on a display screen, and an engine operable, in response to creation of the graphical model, to automatically generate information, such as financial or mathematical information, which at least partially models at least a part of the financial scenario using information collected by the engine during creation of the graphical model. The graphical user interface enables the user to create party graphics respectively representing parties to the financial deal, and to generate financial instrument graphics representing financial instruments, wherein each financial instrument graphic connects two of the party graphics. The engine generates, in response to the creation of a graphical model, an instrument information, such as an object or template, for each of the instruments in the graphical model. The tool includes a natural date language and a formula language for use in modeling a scenario. The tool enables optimization of optimizable parameters defined in the scenario, and includes a user-friendly, book-like and CAD-like user interface.

Description

CROSS-REFERENCE TO RELATED APPLICATION [0001] This application hereby claims priority on U.S. Provisional Patent Application No. 06 / 118,743 filed on Feb. 5, 1999, the disclosure of which is hereby incorporated by reference herein in its entirety.BACKGROUND AND SUMMARY OF THE INVENTION [0002] The present invention relates to an automated tool for modeling the cash flows of financial scenarios, which typically involve use of at least one financial instrument, between various parties to a financial transaction by providing analysts with the ability to graphically represent the parties to the transaction, and their complex interrelationships in a manner that simplifies analysis of various options for completing the deal. In particular, the instant invention is directed to a modeling tool that analyzes various aspects of a proposed financial arrangement between parties to the transaction on the basis of information provided through a high level graphical user interface, and prepares comp...

AI Technical Summary

Benefits of technology

[0002] The present invention relates to an automated tool for modeling the cash flows of financial scenarios, which typically involve use of at least one financial instrument, between various parties to a financial transaction by providing analysts with the ability to graphically represent the parties to the transaction, and their complex interrelationships in a manner that simplifies analysis of various options for completing the deal. In particular, the instant invention is directed to a modeling tool that analyzes various aspects of a proposed financial arrangement between parties to the transaction on the basis of information provided through a high level graphical user interface, and prepares competitive financial proposals, structures the proposals in an optimal manner, and which may further be used to manage and administer the final transaction to ensure compliance and delivery of the financial benefits determined by the tool.

Problems solved by technology

Certain software tools for financial analysis of complex transactions have been developed; however, they have inherent limitations and are very difficult to use for a number of reasons, including, for example, their inflexibility in altering existing models, their requirement of complex commands and codes for building and modifying a proposed model, and their inability to manipulate a financial structure at the higher level of an overview.

However, all of these known systems suffer from numerous disadvantages.

This, in combination with the complex programming-like language that is required, results in a very long learning curve for analysts who use the tool.

Furthermore, the model, once built and run, does not typically enable the analyst to easily change variables or to easily view the resulting change in the transaction.

A primary source of these problems is the complex and inflexible user interface typically associated with these known tools.

Another problem with such prior art tools is that they do not enable a user to model the financial deal visually and mathematically and in a manner which enables interfunctionality and dependency between the visual model and the mathematical model.

As a result, the tools currently in use provide limited ability to deal with higher levels of complexity and the ever expanding universe of evolving financial products in use today, and which will be used in the future.

Additionally, the inflexible interface makes it very difficult for different analysts to be able to discern the exact relationships and variables of a model that another analyst may have been manipulating when the model was being built and later modified.

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