Press Release
Principia Wins Third Straight Technology Award from Credit Magazine for ABS/MBS Performance Data Integration
New York, NY – November 23, 2010 - Principia Partners, a leading solution provider for the management and administration of structured finance investments, has been awarded Credit magazine’s Technology Innovation Award for a third consecutive year. Principia was recognized for its continued development of Principia SFP, the end-to-end platform used by structured finance investors worldwide. In light of impending investor due diligence requirements, innovations to the platform enable structured finance investors to consistently access, manage and evaluate collateral performance information for structured finance and fixed income investments. This is achieved within a streamlined operational framework for investment analysis, risk surveillance and financial reporting.
Credit awards the leading providers of innovative technology and software for the global credit markets. Its judgments are based on the most relevant developments made by vendors and direct feedback from entrants’ buy-side clients. In particular, Credit highlighted Principia’s response to challenges in analytics, risk management, pricing and valuation, in the context of the changing regulatory environment.
Credit noted that developments to Principia SFP mean that: ”delinquency, loss, default and pre-payment rates, as well as other performance measures can be accessed for residential mortgage-backed securities, asset-backed securities, commercial mortgage-backed securities, and collateralized debt obligations. Investors can load Lewtan and Intex data alongside their own, or third party, collateral analysis and model their portfolio of structured finance and fixed income assets in one place. Forecasting assumptions regarding deal, tranche and collateral performance can then be stress tested, helping portfolio managers monitor the performance of securities over time.”
Investor due diligence requirements in the revised Basel II Securitization Framework and the international implementation of these rules (for example through the EU Capital Requirements Directive from December 31st 2010), have been a key driver for Principia’s software development.
The magazine went on to say that, "regulators across the globe are demanding drastic improvements to the infrastructure of the financial sector; improvements that will stretch the capabilities of banks and asset managers."
We surveyed over 500 ABS market participants in 2010: Performance data, access to cashflow waterfall models and the operational capability to actually manage and manipulate this data for ongoing analysis were highlighted as the top priorities for structured finance investors. Half of the investors stated that while they could achieve this for parts of their portfolio they were ineffective at gaining this level of understanding across all their assets, noted Douglas Long, EVP, Business Strategy at Principia. The work we do is driven by client requests, prospects requirements and by the direction we see the regulators taking. We are delighted to be recognized again for these efforts by such a reputable industry title.
Credit (pdf)
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.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com