New York, NY, November 25, 2010 --(PR.com
)-- 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.”
Principia provides financial institutions and independent managers with the most comprehensive software solution for the management of structured finance investments. Some of the best known investors in these assets use the Principia Structured Finance Platform (Principia SFP) as the operational backbone to perform thorough investment analysis, transparently manage and report ongoing risk exposures and achieve seamless operational control, all the way through to accounting.
On Principia SFP, data from external vendors can be normalized alongside internal sources in a dedicated investment management environment so portfolio managers, risk and operations staff can more consistently evaluate and manage transactions and portfolios. Operational inefficiencies and limitations associated with spreadsheets and undedicated systems are reduced by integrating these activities on a unified platform that addresses the unique challenges posed by structured finance.
Powerful analytics and the consistent integration of deal, cash-flow and performance data from the leading industry providers empowers portfolio and risk managers to better understand their investments. On an ongoing basis, users have the flexibility and control to track, analyze and evaluate risk exposures at the deal, tranche or collateral level and gain a consolidated view of risk across deals and portfolios. The fully auditable operational environment delivers a scalable infrastructure to rapidly address changing management, regulatory and accounting mandates, and ensures transparency 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 ABCP conduits and rated operating companies.
Principia Partners is headquartered in New York, with a European office in the City of London and a technology center in Conshohocken, Pennsylvania.
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