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 is the leading software provider for the management and administration of structured finance and credit investment operations. Some of the largest investors in structured credit ABS, MBS and CDOs use Principia SFP as the operational backbone for their portfolios. It enables them to consistently manage, analyze and report on these investments and their associated liabilities and hedges. On a single platform, clients can perform the full range of portfolio management, cashflow and exposure analysis, compliance, risk reporting and accounting activities demanded by their business. Operational inefficiencies associated with using multiple spreadsheets and undedicated systems are reduced by integrating and streamlining these activities on a unified platform that addresses challenges unique to the management of structured finance operations.
Principia SFP’s powerful analytics and ability to interface with, combine and consistently apply deal, cashflow and performance data from the leading industry providers empowers managers to know and understand their investments. On an ongoing basis, users have the control to track, analyze and evaluate risk exposures at the deal, tranche or collateral level and gain a consolidated view of risk across any number of portfolios. The fully auditable operational environment provides the flexibility needed to adapt to changing management, regulatory and accounting mandates and ensure transparency is consistently delivered to investors at every stage of the portfolio lifecycle.
For 15 years, the platform has been used by global commercial banks, insurance companies and investment managers, as well as supporting off-balance sheet operations such as ABCP conduits.
Principia Partners is headquartered in New York, with a European office in the City of London and a technology center in Conshohocken, Pennsylvania.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com