The present invention discloses an engineering solution to the automation of funding assessing and managing collateral dependent loans and indexed linked products. Equity Finance Mortgages (EFM’s) are issued by financial institutions and have a return, either profit or loss, which is determined by the way residential real estate market rise or fall respectively. Financial index products sold by some financial entities are akin to bonds or term deposits and pay a return to investors which is linked to the performance of a house or home price index. Consequently, an EFM issuing institution can hedge its exposures to the residential real estate market by selling such financial index products so that profits or losses on the EFM’s are offset by the losses or profits respectively of the index products. Methods of calculating an appropriate matching of the dollar value of the EFM’s and index products are disclosed. Also disclosed is a vector or distance technique to determine if new EFM’s having various characteristics should be added to the existing portfolio of EFM’s.