Joseph Brant Arseneau
Encyclopedia
Joseph Brant Arseneau is generally known in finance and technology for first formally defining finance techniques for third world housing by describing the securitization
of excess cash flow from renewable energy
with the use of Renewable Energy Derivative
s.
The technique was first based on microfinance
methods and it continues to gain popularity as both financial and technical infrastructure matures. His team was also involved in the development of the Renewable Energy Derivative
, which is a structured product
that securitizes renewable energy into property-based debt obligations backed by the cash flows of excess energy. Thus providing a responsible use of the environment to finance properties in third world countries.
The method was initially intended to finance lower income housing in developing countries by replacing the credit risk
with the operational risk
of the renewable energy assets' capability to generate predictable cash flows. The financing is structured so that the risk is to be underwrite until the cost of the houses can be claimed by the banks. The new method includes operational risk
transfer
and mitigation
through insurance, weather derivatives
and "world class" preventive maintenance
programs.
Arseneau's primary area of technical expertise is in biologically-inspired systems called computational intelligence
, which include: neural networks
, genetic algorithms, fuzzy logic
, swarm intelligence
, and intelligent agents. His interest in computational intelligence began with his research into the application of neural networks to software reengineering; that research went on to form the foundation to a patent being awarded to Raymond Obin and Brian Reynolds for a commercial reenginering process.
His primary area of business expertise is in capital markets including; high performance computing for trading, new securitization
methods, derivatives
, and financing techniques in developing economies. His work on high frequency trading has been leveraged by several academic research efforts and more recently a commercial venture. His earlier research on computational intelligence
and reengineering (software)
is frequently cited.
Securitization
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation , to...
of excess cash flow from renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
with the use of Renewable Energy Derivative
Renewable Energy Derivative
A renewable energy derivative is based on a new method of securitization, which is a structured finance process that pools and repackages cash-flow-producing financial assets into securities which are then sold to investors...
s.
The technique was first based on microfinance
Microfinance
Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services....
methods and it continues to gain popularity as both financial and technical infrastructure matures. His team was also involved in the development of the Renewable Energy Derivative
Renewable Energy Derivative
A renewable energy derivative is based on a new method of securitization, which is a structured finance process that pools and repackages cash-flow-producing financial assets into securities which are then sold to investors...
, which is a structured product
Structured product
In finance, a structured product, also known as a market linked investment, is generally a pre-packaged investment strategy based on derivatives, such as a single security, a basket of securities, options, indices, commodities, debt issuance and/or foreign currencies, and to a lesser extent, swaps...
that securitizes renewable energy into property-based debt obligations backed by the cash flows of excess energy. Thus providing a responsible use of the environment to finance properties in third world countries.
The method was initially intended to finance lower income housing in developing countries by replacing the credit risk
Credit risk
Credit risk is an investor's risk of loss arising from a borrower who does not make payments as promised. Such an event is called a default. Other terms for credit risk are default risk and counterparty risk....
with the operational risk
Operational risk
An operational risk is, as the name suggests, a risk arising from execution of a company's business functions. It is a very broad concept which focuses on the risks arising from the people, systems and processes through which a company operates...
of the renewable energy assets' capability to generate predictable cash flows. The financing is structured so that the risk is to be underwrite until the cost of the houses can be claimed by the banks. The new method includes operational risk
Operational risk
An operational risk is, as the name suggests, a risk arising from execution of a company's business functions. It is a very broad concept which focuses on the risks arising from the people, systems and processes through which a company operates...
transfer
Money transfer
Money transfer generally refers to one of the following cashless modes of payment or payment systems:*Wire transfer, an international expedited bank-to-bank funds transfer*Electronic funds transfer, an umbrella term mostly used for bank card-based payments...
and mitigation
Mitigation banking
Mitigation banking is the restoration, creation, enhancement, or preservation of a wetland, stream, or habitat conservation area which offsets expected adverse impacts to similar nearby ecosystems...
through insurance, weather derivatives
Weather derivatives
Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk management strategy to reduce risk associated with adverse or unexpected weather conditions...
and "world class" preventive maintenance
Preventive maintenance
Preventive maintenance has the following meanings:#The care and servicing by personnel for the purpose of maintaining equipment and facilities in satisfactory operating condition by providing for systematic inspection, detection, and correction of incipient failures either before they occur or...
programs.
Arseneau's primary area of technical expertise is in biologically-inspired systems called computational intelligence
Computational intelligence
Computational intelligence is a set of Nature-inspired computational methodologies and approaches to address complex problems of the real world applications to which traditional methodologies and approaches are ineffective or infeasible. It primarily includes Fuzzy logic systems, Neural Networks...
, which include: neural networks
Neural Networks
Neural Networks is the official journal of the three oldest societies dedicated to research in neural networks: International Neural Network Society, European Neural Network Society and Japanese Neural Network Society, published by Elsevier...
, genetic algorithms, fuzzy logic
Fuzzy logic
Fuzzy logic is a form of many-valued logic; it deals with reasoning that is approximate rather than fixed and exact. In contrast with traditional logic theory, where binary sets have two-valued logic: true or false, fuzzy logic variables may have a truth value that ranges in degree between 0 and 1...
, swarm intelligence
Swarm intelligence
Swarm intelligence is the collective behaviour of decentralized, self-organized systems, natural or artificial. The concept is employed in work on artificial intelligence...
, and intelligent agents. His interest in computational intelligence began with his research into the application of neural networks to software reengineering; that research went on to form the foundation to a patent being awarded to Raymond Obin and Brian Reynolds for a commercial reenginering process.
His primary area of business expertise is in capital markets including; high performance computing for trading, new securitization
Securitization
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation , to...
methods, derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
, and financing techniques in developing economies. His work on high frequency trading has been leveraged by several academic research efforts and more recently a commercial venture. His earlier research on computational intelligence
Computational intelligence
Computational intelligence is a set of Nature-inspired computational methodologies and approaches to address complex problems of the real world applications to which traditional methodologies and approaches are ineffective or infeasible. It primarily includes Fuzzy logic systems, Neural Networks...
and reengineering (software)
Reengineering (software)
The reengineering of software was described by Chikofsky and Cross in their 1990 paper, as "The examination and alteration of a system to reconstitute it in a new form"...
is frequently cited.