Press Release
Principia Announces New Integrated ABCP Conduit Solution
New product leverages Principia SFP to address market need for integrated deal management, operational processing and regulatory compliance
Jersey City, NJ – January 24, 2006 – Principia Partners LLC, the leading solution provider for structured finance operations, today announced the debut of a new solution for the management and administration of ABCP (asset-backed commercial paper) conduits. This new solution is built on Principia SFP, an integrated structured finance platform that reduces the risks and costs associated with managing structured finance operations.
Principia’s ABCP Conduit solution addresses major challenges for administrators and managers of conduits, by providing intuitive daily deal and position management that drives automated processing of invoices, advices, accounting entries and reporting (regulatory, compliance and management). “This level of automation dramatically reduces the amount of manual intervention required of conduit operators,” states Dr. Douglas Long, EVP – Business Strategy at Principia. “Furthermore, all transactions are tracked to ensure program transparency and the proper audit control required to meet myriad regulatory requirements, thereby minimizing operational risk and costs.”
ABCP conduits are special purpose vehicles that issue highly-rated commercial paper backed by diversified assets, liquidity support and credit enhancement. The programs are usually designed to reduce balance sheet regulatory capital or to obtain low-cost short-term funding for banks and other corporate entities.
The Principia conduit solution is flexible and scalable, enabling
managers to add new deals or conduits, or different structured finance
vehicles, intuitively and with minimal effort. A key strength of
Principia SFP, is the ability to rapidly deploy, execute and maintain
structured finance operations. These include ABCP conduits, securities
arbitrage conduits, structured investment vehicles, credit derivative
vehicles and guaranteed investment contract issuers.
Principia SFP leverages more than a decade of experience in
providing and implementing solutions for structured investment vehicles,
guaranteed investment contract issuers, and credit derivative vehicles,
supporting 50% of those businesses covered by a rating agency under
its methodology for rating structured financial operating companies.
“In order to maintain the high credit ratings of their issuances, structured finance vehicles are managed against extremely stringent operating and risk guidelines,” comments Dr. Long. “Principia SFP automates compliance with these guidelines so that managers of the business can focus on growth and profitability objectives.” Comprehensive asset structuring capabilities, coupled with broad coverage of financial instruments within a flexible platform, facilitate rapid growth or entry into new businesses as market opportunities arise. A full suite of operational and reporting tools enable vehicles to meet the rigorous requirements of third parties and rating agencies during ramp-up and on an ongoing basis.
“The structured finance industry is enjoying unprecedented growth, undergoing rapid transformation as best of breed techniques begin to converge,” states Theresa Adams, President and CEO of Principia. “Principia SFP is of tremendous value to our clients in that it cost-effectively meets the common, straight-through processing needs of structured finance operations, yet is adaptive enough to address the evolving structuring and workflow requirements of many different vehicle types.”
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