Principia Partners, which provides solutions for the management and administration of structured finance portfolios, launched Principia Structured Finance Platform (Principia SFP) Version 6.2.
This latest version helps financial institutions and investment managers to track, monitor, analyze and report on the collateral pool performance of any fixed income asset, including ABS, RMBS, CMBS, CDOs, CLOs as well as covered bonds.
It also offers a standardized, end-to-end operational infrastructure to normalize and more efficiently manage ongoing collateral performance data, regardless of the asset class or data source.
A new standard interface into Principia SFP has resolved the inefficiencies in integrating performance and cash-flow data into the ongoing structured finance portfolio management and oversight. The system automates the processing of external data from any independent performance data provider (e.g. Intex Solutions, Lewtan Technologies, Markit Group, Bloomberg, Trepp Group, Moody’s Investors Service, Standard & Poor's etc.) or bond trustee, as well as proprietary data that results from the internal credit analysis of loan-by-loan information.
The data for multiple transactions is from various data sources. These are integrated on a single platform to provide accurate and consistent performance metrics that are on-demand and across the business. Organizations can manage compliance with risk limits, perform rigorous stress tests and deliver timely reports detailing performance measures at the portfolio, deal, tranche or collateral level.
The Basel II Framework Enhancements state that to qualify for the new risk weightings, institutions, "must be able to access performance information on the underlying pools on an ongoing basis, in a timely manner. Such information may include, as appropriate: Exposure type; percentage of loans 30, 60 and 90 days past due; default rates; prepayment rates; loans in foreclosure…”
Using Principia SFP Version 6.2, portfolio managers, risk analysts and compliance staff can choose from over 350 pre-defined performance measures to ‘slice and dice’ fixed income and structured credit portfolios. This includes the ability to monitor, analyze and report on loan-to-value ratios and cumulative deal level losses and to stress test default, recovery and prepayment rates, among other things.
“We are seeing a growing demand from financial institutions and investment managers looking to reduce the inefficiencies and risks associated with managing and integrating multiple databases and data sources for different structured finance deals,” said Douglas Long, EVP business strategy, Principia Partners. “Policy makers are making sure that organizations with long term investment goals involving securitized assets have a robust operational framework in place to really understand their investments on an ongoing basis. That’s not possible on spreadsheets and systems that aren’t developed specifically to adapt to the dynamic requirements of structured finance.”
Principia SFP V6.2 is available immediately and can be provided as a stand-alone system or as an upgrade for existing Principia SFP users.