Press Release
Principia Launches Unified Structured Finance Operating Company Framework
Jersey City, NJ - 13 June, 2005 - Principia Partners LLC, a leading solutions provider to the structured finance industry, today announced a unified structured finance operating company (SFOC) framework that provides advanced end-to-end processing capabilities for multiple structured finance businesses, such as ABCP conduits, securities arbitrage conduits, structured investment vehicles (SIVs), credit derivatives vehicles and guaranteed investment contracts (GIC) issuers.
Principia is already the dominant solutions provider for SIVs, GIC issuers and credit derivatives vehicles- supporting 50% of those businesses covered by a rating agency under its methodology for rating structured financial operating companies.
Building on over ten years of domain expertise the framework addresses the demands in the industry for a unified platform that provides deal (portfolio, credit & liquidity) management in conjunction with automation of operationally intensive administrative tasks such as compliance reporting, accounting and maintaining an audited operating policy. Unlike many current market solutions that rely heavily on inefficient and error-prone spreadsheets, Principia's SFOC framework offers a common foundation that can flexibly meet the stringent requirements of managing a variety of structured finance businesses.
By virtue of its consistent end-to-end processing platform, the Principia System helps clients to reduce operational risks and costs stemming from unmanaged spreadsheet proliferation and maintenance of a multitude of disparate systems. As regulatory and compliance pressures intensify, the ability to provide detailed audit trails and deal transparency through managed operational processes is becoming increasingly important to these businesses.
"One of the main strengths of the Principia SFOC framework is its ability to impart significant time-to-value benefits across a wide spectrum of vehicles in this dynamic market" states Dr. Douglas Long, EVP - Business Strategy at Principia Partners. "For example, a security arbitrage conduit manager can easily and quickly adapt the system to utilize techniques from a SIV structure, in order to pursue economic or arbitrage opportunities. It can be a decisive competitive advantage in terms of both eliminating labor-intensive and non value-added activities as well as minimizing risk inherent in manual processes."
The Principia SFOC framework has three core components: a portfolio management layer with comprehensive position management and deal capture facilities; a cashflow and exposure analysis engine for managing market, credit and liquidity risks; and accounting/operations capabilities designed to produce statements and reports for regulatory compliance as well as internal and investor requirements.
About Principia Partners
Principia Partners LLC (Principia) provides a comprehensive single platform solution for the end-to-end management of structured finance investments. Global financial institutions and independent asset managers have used the award winning Principia Structured Finance Platform since 1995 to unify investment analysis, portfolio management, risk surveillance, accounting and operational control across the breadth of structured credit assets, fixed income investments and complex derivatives.
For over 15 years Principia’s mission has been to help investors independently address the deal specific investment and cashflow analysis, valuation, risk management, reporting and due diligence requirements of structured credit investments and portfolios. Its dedicated support and continued development of functionality for structured finance instruments is accompanied by a proven and fully integrated derivative valuation framework. This overall credit investment and market risk solution delivers the robust backbone necessary for deeper investment analysis, proactive risk surveillance and operational control across the credit investment business.
Principia is based in New York, with an office in London and a technology center in Conshohocken, Pennsylvania. Principia SFP was awarded the Credit Technology Innovation award by Credit magazine in 2008, 2009 and 2010.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com