Press Release
EBRD selects the Principia System to consolidate market and credit risk portfolio management operations
Jersey City, NJ - 15 August, 2005 - Principia Partners LLC,
a leading solutions provider to the structured finance industry
and capital markets/treasury markets, announced today that the
European Bank for Reconstruction and Development (EBRD) has licensed
the Principia System to drive its Treasury’s initiative for
an integrated credit and market risk portfolio management system.
EBRD’s Treasury initiative, named the Integrated Credit and Market Risk Portfolio Management System (IPMS), will provide more accurate pricing of credit-based products in conjunction with other financial assets and liabilities. The Principia System will also enable EBRD to enhance its analysis of expected cross-asset portfolio returns across assumptions based on macro economic models and scenarios. These variables include: inflation, interest rates, recovery rates, credit spreads, credit migration, default probabilities and equity market volatility.
“We selected Principia based on its ability to capture and price the myriad financial instruments we trade and provide a common framework for pre-trade and post-trade risk analysis,” stated Axel Van Nederveen, Treasurer at EBRD. The supranational bank, owned by 60 countries and two intergovernmental institutions, is the largest single investor in a region spanning 27 countries from Central Europe to Central Asia. The Bank’s Treasury manages a range of financial activities including: management of the Bank’s liquidity, funding in the capital markets, asset and liability management as well as pricing and hedging Bank transactions. As a result, it makes use of a wide variety of instruments, from money markets to securities, including interest rate and credit derivatives.
“We are delighted to be part of the EBRD’s Treasury investment management solution,” states Theresa Adams, President and CEO of Principia. “We look forward to delivering a solution that meets the demanding requirements of the EBRD’s dynamic trading and risk management strategies.”
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