Press Release
Principia Addresses Demand from SIV Investors and Portfolio Managers for Control of Structured Finance Assets
Company extends its offering to new mangers of ABS and MBS portfolios
New York, NY – April 8, 2008 - Principia Partners, a leading solution provider for the management
and administration of structured finance operations, today announced it will deliver its technology
to a new segment of structured finance portfolio managers. Principia is now offering its SFP
(Structured Finance Platform) to SIV (structured investment vehicle) capital notes holders and
other investors who have recently taken responsibility for SIV assets, as a result of restructuring
or vertical slicing activities.
Market participants are demanding proven operational platforms for the end-to-end management of
complex assets in their portfolios. Principia is also helping existing SIV managers, SIV sponsor
banks and alternative investment funds in meeting new operational and technical challenges. The
recent credit crisis has further highlighted the importance of the efficient management, control
and monitoring of structured finance portfolios, both on- and off-balance sheet. Many financial
institutions have identified new opportunities to enhance the entire process, at this time of
transition in the market. Principia SFP will enable new structured finance managers to monitor
cash flows, valuations and amortization events. It also incorporates risk and compliance controls,
while providing ongoing surveillance and reporting of all assets end-to-end - from portfolio
management through to accounting.
Large-scale ABS and MBS asset redistribution has highlighted the requirement for a strong
operational backbone, which has traditionally not been a concern for SIV capital note
investors and other portfolio managers. Douglas Long, EVP Business and Product Strategy,
Principia stated: “With assets moving directly onto the balance sheets of banking organizations
and alternative investment funds, operations are no longer solely funding driven, so the challenge
of attaining transparency of all investments, across multiple business operations is acute.
Having developed our solution with SIVs, ABCP conduits, credit derivative product companies
and portfolio managers, Principia is in a unique position to deliver packaged solutions for
the next wave of structured finance and credit investment managers.“
Vertical slicing activity has put structured finance capital note investors in the position of
having to monitor assets in disparate places, both on- and off-balance sheet. Principia SFP
provides for a holistic view of assets, liabilities and associated derivatives in multiple
locations, enabling more effective and active liquidity management. It also gives the investor
the accurate risk profiling and reporting capabilities they require for the processing and
accounting of these complex securities.
Long continued: “Principia SFP can immediately address the need for increased surveillance
and risk management at a time when there is ever more scrutiny over risk and accountancy practices.
We are already in talks with more than 20 financial institutions around the world that are now
looking for help in this area. We expect the number to continue to rise as more off-balance sheet
operations are restructured and the sponsors and investors find themselves managing the ownership
of physical assets.“
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.
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 SFPs 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