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 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