Press Release
US Federal Home Loan Banks Live on Principia Structured Finance Platform for 15 Years
New York, NY – April 27, 2010 - Principia Partners, a leading solution provider for the management and administration of structured finance investments, today announced that the US Federal Home Loan Banks (FHLBanks) of Atlanta, Boston, Cincinnati, Des Moines and New York have now been successfully using the Principia Structured Finance Platform (Principia SFP) for 15 years. The five regional home loan banks, which were among Principia’s earliest adopters, are currently using the platform to perform their debt issuance and associated hedge valuations, operational straight through processing and accounting activities.
While the application varies from bank to bank, the FHLBanks typically manage their debt issuance as well as a wide array of fixed income investments and complex hedging instruments using the software. The banks also found that Principia SFP was unique in its ability to accurately model and price the advances made to their community bank members. Often these products are structured with callable and embedded optionality features that are not handled well by other solutions.
Patrick Morgan, CFO at FHLB NY said, “Principia is integral to the ongoing investment analysis and automated processes that drive our entire trade lifecycle management. Its provision of data and powerful analytics ensure accurate valuations and the effective risk management of our investments, debt issuance and hedging positions so that we can more easily provide readily available, low-cost funding for our members. Streamlining these processes into Principia’s reporting and accounting framework has helped to eliminate operationally intensive tasks and processes - in particular it has ensured we maintain compliance with complex accounting requirements such as ASC 815 (formerly FAS 133) for many years.”
Usage of the platform has expanded significantly as Principia has worked with the FHLBank sector. The platform is now also used by the banks for its extensive reporting capabilities, workflow control and automated accounting. From front to back office, the banks are able to analyze highly structured fixed income investments, including Asset Backed and Mortgage Backed Securities and value associated hedges, issued debt and FHLBank advances. On the same system they can then summarize the resulting accounting entries to accurately and more efficiently assess and report on the effectiveness of hedging relationships.
“Maintaining these key strategic relationships with our long standing clients in this rapidly changing marketplace is very rewarding and has been vital to our own ongoing growth and success. We are pleased that our drive to deliver the dedicated functionality and support required by these important US government institutions has helped them to achieve their organizational goals. We look forward to working with our existing FHLBank clients and the remaining institutions in the Federal Home Loan Banking System to help them benefit from the latest developments to our software,” states Theresa Adams, CEO and President of 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