Press Release
US Federal Home Loan Banks Live on Principia Structured Finance Platform for 15 Years
New York, NY April 27, 2010 - Principia Partners, a leading solution provider for the management and administration of structured finance investments, today announced that the US Federal Home Loan Banks (FHLBanks) of Atlanta, Boston, Cincinnati, Des Moines and New York have now been successfully using the Principia Structured Finance Platform (Principia SFP) for 15 years. The five regional home loan banks, which were among Principias earliest adopters, are currently using the platform to perform their debt issuance and associated hedge valuations, operational straight through processing and accounting activities.
While the application varies from bank to bank, the FHLBanks typically manage their debt issuance as well as a wide array of fixed income investments and complex hedging instruments using the software. The banks also found that Principia SFP was unique in its ability to accurately model and price the advances made to their community bank members. Often these products are structured with callable and embedded optionality features that are not handled well by other solutions.
Patrick Morgan, CFO at FHLB NY said, Principia is integral to the ongoing investment analysis and automated processes that drive our entire trade lifecycle management. Its provision of data and powerful analytics ensure accurate valuations and the effective risk management of our investments, debt issuance and hedging positions so that we can more easily provide readily available, low-cost funding for our members. Streamlining these processes into Principias reporting and accounting framework has helped to eliminate operationally intensive tasks and processes - in particular it has ensured we maintain compliance with complex accounting requirements such as ASC 815 (formerly FAS 133) for many years.
Usage of the platform has expanded significantly as Principia has worked with the FHLBank sector. The platform is now also used by the banks for its extensive reporting capabilities, workflow control and automated accounting. From front to back office, the banks are able to analyze highly structured fixed income investments, including Asset Backed and Mortgage Backed Securities and value associated hedges, issued debt and FHLBank advances. On the same system they can then summarize the resulting accounting entries to accurately and more efficiently assess and report on the effectiveness of hedging relationships.
“Maintaining these key strategic relationships with our long standing clients in this rapidly changing marketplace is very rewarding and has been vital to our own ongoing growth and success. We are pleased that our drive to deliver the dedicated functionality and support required by these important US government institutions has helped them to achieve their organizational goals. We look forward to working with our existing FHLBank clients and the remaining institutions in the Federal Home Loan Banking System to help them benefit from the latest developments to our software,” states Theresa Adams, CEO and President of Principia Partners.
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