Structured finance solution provider Principia Partners has enhanced its platform to help investors standardize the ongoing integration of structured finance bond trustee data.
Because of this new addition, investment managers can now better define, analyze and report on bond-level information for RMBS and other structured credit asset classes, supporting market standards being proposed by the American Securitization Forum and the European Securitization Forum.
The interface includes a standard set of bond issuance data descriptors that allows investors to map trustee data directly into their systems. Within Principia SFP, tranches can be evaluated in the context of the original securitization or across all the deals being managed in a portfolio. The platform also allows this data to be analyzed along with collateral pool performance data from any given source.
Structured credit investors can select as well as monitor standard bond characteristics, including those recommended by the ASF and ESF for RMBS, as well as the issuance data for all other structured finance assets. Custom fields can also be specified to address individual requirements. Becuase of this, investors can then consistently monitor and react to changing transaction information throughout the security's life. Using the system, firms can set limits, flag deals and monitor triggers that have been established within the indenture of a securitization, to track and maintain compliance over time.
Bond-level trustee data — such as static data such as names of swap providers, the servicer and the original balance; or dynamic data such as the percentage of fixed rate loans, principle paid and credit enhancement applied — can be processed on receipt of updated trustee and servicer reports.
Investors can monitor changes to the deal structure at a glance — including percentage of loans outstanding by geography. This helps to identify the performance metrics that should be in place at any given time.
“The ASF’s and ESF’s efforts are playing a major role in ensuring that best practices are in place for the return of a stable and functioning securitization market,” said Douglas Long, evp business strategy, Principia. “The developments to Principia SFP aim to help market participants adapt to changing standards as they are introduced and ensure clients have the operational infrastructure they require to consistently understand their structured finance investments over time.”