about us

Longbank applies knowledge gained from the practical use of options and other derivatives to develop and market alternative investment concepts.

Longbank's focus on derivatives engineering differentiates Longbank from other alternative investment firms and we think that our focus helps our stakeholders understand uncertainty – the main determinant of value in any investment – with clarity and depth of insight unachievable through other valuation approaches.

Most people think of options as specialized financial instruments that use leverage, yet the price of ordinary stock is also an option - the option on any residual value remaining once debt holders make their claims. With a healthy blue-chip stock, the value of equity safely exceeds debt, diminishing the relevance that the stock is also an option - under these conditions, the skill of option-pricing may appear unimportant to an investor.

With distressed equity, highly volatile stocks, new business concepts, and indeed most alternative investment concepts, the value of equity may be marginal, negative or unknown, inducing significant and sometimes unwanted leverage on the owners of equity. Under these conditions, owners of equity - and other stakeholders - who have option-pricing skills may have an advantage over stakeholders without these skills.

Longbank's current project is www.swapsMarket.com

Unique feature of Longbank's options-based methodology

Longbank emplloyes a unilateral options-based approach, Interactive Insights™, to make value-creating investment decisions and achieve performance goals of low correlation and high risk-adjusted returns.

Interactive Insights™is a fundamentally new approach to valuation that represents investments as three-dimensional objects instead of numbers in a spreadsheet. The approach was engineered in response to the limitations of current evaluation and forecasting methods, and specifically to help Longbank seek and value investments whose value, number, or timing of future cash flows is highly uncertain. An understanding of uncertainty (expected volatility) is key to qualifying and quantifying alternative investments.

In addition to helping identify which of several alternatives might make the better investment, our patent-pending approach also maps the strategy and tactics necessary to actively create value after commitment..read more in methodology.