Press Release
Channel Capital Advisors selects Principia SFP in its launch of a new Credit Derivative Product Company (CDPC)
Software chosen for use
in the risk management and reporting of Channel Capital PLC,
an Irish CDPC
Jersey City, NJ – 20th March 2007 – Principia Partners, a leading
solution provider for the management and administration of structured finance
operations, announced that Channel Capital Advisors LLP has licensed Principia
SFP as the technology application and risk management software in its management
of Channel Capital plc, a new Credit Derivative Product Company (CDPC).
The system will manage transactions from deal capture and risk management
through compliance reporting.
The CDPC will principally write credit protection on AAA rated
tranches of portfolios of corporate and sovereign obligors. Channel Capital
plc is expected to be extremely efficient even in current tight credit spread
market conditions due to its use of a multiple-tranche capital structure,
a low velocity business model, and other operational and structural enhancements
of its business model.
“We selected Principia because it provides strong operational
capabilities in a proven framework that has been the backbone of various
existing
SIVs, CDPCs and structured finance operations,” states Walter Gontarek,
Senior Partner and CEO of Channel Capital Advisors. “Principia will
facilitate our ability to satisfy the technological infrastructure
req uired to expedite the successful launch of our platform and
support on-going risk
management requirements of the CDPC. In the long run, we anticipate
it will help our business scale both in terms of an ever growing
credit derivatives
portfolio size and to exploit new asset class opportunities.”
Principia’s operational processing platform is uniquely designed for
structured finance institutions who are required to produce capital, liquidity
and portfolio risk reporting on a regular basis to rating agencies. In order
to continue receiving high counterparty credit ratings from those agencies,
CDPCs are required to adhere to strict operating guidelines that define
various aspects of operation ranging from types of credit transactions,
portfolio composition and asset eligibility.
Gontarek goes on to say, “Principia also demonstrated a commitment
to support the ever-expanding range of structured credit instruments. The
software supports our eligible investments, liabilities and hedging derivatives
as well as a complete range of first and second generation credit derivatives
including single-name credit default swaps (CDS), basket swaps, CDS on structured
finance securities and single-tranche CDOs.”
Principia SFP enables management and administration of single or
multiple structured finance operations, on a single system. This includes;
ABCP conduits, securities arbitrage conduits, structured investment vehicles,
credit derivative product companies and guaranteed investment contract programs.
“Channel’s business model is a perfect example of how the structured
finance market is converging and cross-breeding capital structures
and technologies in order to deliver greater value to investors. We are delighted
to be working
with clients who can truly leverage the breadth and depth of our
structured finance platform,” states Theresa Adams, CEO and Partner
at Principia Partners.
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