Press Release
Principia Supports Standardization of Bond Issuance Data for Structured Finance
Integration of pre- and post-issuance data supports ASF and ESF RMBS issuer transparency initiatives
New York, NY December 15, 2009 - Principia Partners, the leading solution provider for the management and administration of structured finance portfolios, has enhanced its platform to help investors standardize the ongoing integration of structured finance bond trustee data. As a result, investment managers can 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 (ASF) and the European Securitisation Forum (ESF).
The interface includes a standard set of bond issuance data descriptors that enables 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 alongside collateral pool performance data from any given source.
Expanding pool and loan-level disclosure to investors, both pre- and post-issuance, is critical to restoring confidence in securitization transactions. said Tom Deutsch, deputy executive director, ASF. This new raw data in standard formats, as well as the tools to analyze it, gives investors the ability to better compare transactions, apples to apples.
Structured credit investors can select and monitor standard bond characteristics, such as those being 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. Investors can then consistently monitor and react to changing deal information throughout the lifecycle of a security. Organizations 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 (e.g. 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, principal 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 (e.g. percentage of loans outstanding by geography) to make informed assumptions about the performance of underlying collateral. This helps to identify the performance metrics that should be in place at any given time.
The ASFs and ESFs 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.
Further information about ASFs RMBS Trustee Bond-Level Reporting Package is available at www.americansecuritization.com. The European Securitization Forum has already introduced standard issuer reporting guidelines for RMBS in 2009 which have been adopted by several issuers throughout Europe.
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