Integration with the Principia Analytic System

Addressing Fixed Income Capital

The Principia Analytic System provides credit investment institutions with a comprehensive operational solution to consolidate the investment analysis and risk surveillance of structured finance assets, within an overall view of their investment portfolio. The due diligence, risk exposure analysis, stress testing and operational platform unifies analysis, understanding and risk oversight across deals, portfolios and business units. With a single operational backbone institutions can efficiently address and evolve with internal and marketwide due diligence mandates.

Master Investment Due Diligence
  • A single view across structured finance and fixed income assets on one dedicated portfolio management, risk surveillance and operations platform
  • Unify performance data and credit analysis from internal and external sources and fully integrate cashflow models into deal and portfolio wide assessments
  • Analyze deal specific risk characteristics for existing and potential deals e.g. seniority, cashflow profile, historical performance and credit enhancement
  • Assess historical and current performance at the collateral, tranche, deal and portfolio level, with asset specific metrics e.g. delinquency and loss rates
  • Know your issuer and interface to standard bond issuance reporting templates

Proactively Manage Risk Exposures
  • Query portfolio exposures (e.g. asset, geography, ratings) and performance exposures (e.g. 30 day delinquency, LTV etc) across assets and business units
  • Set flags, triggers and limits to automate warning signs across any portfolio, deal, tranche or collateral metrics and comply with investment guidelines
  • Stress test valuations based risk parameters, including prepay, default, interest rate and delinquency static and vector assumptions
  • Full suite of standard and customizable structured finance deal cashflow, performance, portfolio and compliance reports

Streamline Operations
  • Full audit control and streamlined processes from portfolio management, through risk surveillance and into accounting
  • Implement formal policies and procedures with customizable interfacing, workflow and reporting
  • Address US Market Risk Rulings and EU CRD due diligence requirements such as Article 122a e.g. as per FSA's Bipru and Bafin (German Banking Act) and rapidly evolve with future operational credit analysis criteria.

Principia Link Bullet download our summary of industry guidance on due diligence implementation