Press Release
Principia Supports Standardization of Bond Issuance Data for Structured Finance
Integration of pre- and post-issuance data supports ASF and ESF RMBS issuer transparency initiatives
New York, NY – December 15, 2009 - Principia Partners, the leading solution provider for the management and administration of structured finance portfolios, has enhanced its platform to help investors standardize the ongoing integration of structured finance bond trustee data. As a result, investment managers can better define, analyze and report on bond-level information for RMBS and other structured credit asset classes, supporting market standards being proposed by the American Securitization Forum (ASF) and the European Securitisation Forum (ESF).
The interface includes a standard set of bond issuance data descriptors that enables investors to map trustee data directly into their systems. Within Principia SFP, tranches can be evaluated in the context of the original securitization or across all the deals being managed in a portfolio. The platform also allows this data to be analyzed alongside collateral pool performance data from any given source.
“Expanding pool and loan-level disclosure to investors, both pre- and post-issuance, is critical to restoring confidence in securitization transactions.” said Tom Deutsch, deputy executive director, ASF. “This new raw data in standard formats, as well as the tools to analyze it, gives investors the ability to better compare transactions, apples to apples.”
Structured credit investors can select and monitor standard bond characteristics, such as those being recommended by the ASF and ESF for RMBS, as well as the issuance data for all other structured finance assets. Custom fields can also be specified to address individual requirements. Investors can then consistently monitor and react to changing deal information throughout the lifecycle of a security. Organizations can set limits, flag deals and monitor triggers that have been established within the indenture of a securitization, to track and maintain compliance over time.
Bond-level trustee data (e.g. static data such as names of swap providers, the servicer and the original balance; or dynamic data such as the percentage of fixed rate loans, principle paid and credit enhancement applied), can be processed on receipt of updated trustee and servicer reports. Investors can monitor changes to the deal structure at a glance (e.g. percentage of loans outstanding by geography) to make informed assumptions about the performance of underlying collateral. This helps to identify the performance metrics that should be in place at any given time.
“The ASF’s and ESF’s efforts are playing a major role in ensuring that best practices are in place for the return of a stable and functioning securitization market,” said Douglas Long, evp business strategy, Principia. “The developments to Principia SFP aim to help market participants adapt to changing standards as they are introduced and ensure clients have the operational infrastructure they require to consistently understand their structured finance investments over time.”
Further information about ASF’s RMBS Trustee Bond-Level Reporting Package is available at www.americansecuritization.com. The European Securitization Forum has already introduced standard issuer reporting guidelines for RMBS in 2009 which have been adopted by several issuers throughout Europe.
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