In The News
Media Coverage Archive
The following is a collection of press mentions and contributed
published works in the trade press by Principia prior to
|Dec-08||The Big Interview
"The barrier to entry for people who need to manage
these products has changed across the board. The move
to on-balance sheet management has broadened our market
considerably: credit investment desks within bank treasuries,
opportunistic distressed debt funds and insurance companies
with investment portfolios they need to manage. Before
they either relied on internal development - databases
they built themselves - or their existing treasury
systems. The market needs what we've been providing
|Dec-08||ABS Settles its Accounts
…those who are in structured finance for the long term desire more transparency in valuations, and [Principia’s] latest platform provides the means to bring all the necessary data sources together to best assess fair value and generate appropriate accounting. And it’s a challenging task.
“The future will dictate that structured finance
managers need to have much greater flexibility to report
on the valuation of their securities effectively.”
|Dec-08||One Last Roll of the Dice
key is going to be educating your management, getting
comfortable, having the right controls and
risk processes put in place."
|Nov-08||Preparing to Pounce
Principia is one vendor that has updated its offering in an attempt to address such demands, by introducing Principia SFP V6. The offering is expected to be implemented by a range of organisations - managers within bank treasuries, off-balance sheet operations and investment funds, and especially those that have to quickly adapt themselves to the new environment.
Wins Technology Innovation Award
“Principia’s operational processing platform
is designed for structured finance institutions who
are required to have on-demand sophisticated portfolio
management and portfolio risk reporting for their structured
“But investors will not be given mandates to
invest in this area unless they have the appropriate
controls and sophisticated risk management techniques
|Jul-08||Are Rating Agencies Covering up
"... there will be general acceptance of ratings but investors will also increase their scrutiny and ramp up their own internal surveillance of the products they buy."
|Jun-08||CDPCs Flourish in Hard Times
"Systems must handle the operating manual designed with rating agencies - what they do and how - integrating in compliance, and rating agency and internal management reporting needs."
|Jun-08||Credit: Where it's Due
"The key thing that people are going through now is differentiating between those structures that have been hurt versus those that have the stability to continue through the rough market."
|Jun-08||Storm Clouds Clear Above Europe
"The aim is not just to remove the operational risk of manual operations in the trade lifecycle, but also to ensure that human element is enforceable and that senior management can check on the status of the structured finance portfolio. "
|Jun-08||Inside Guide: Credit Derivative Product Companies
" Effective capture and storage of data in such a way that it can be used to ensure compliance with trading limits and operational guidelines is at the heart of a CDPCs operational requirement."
|May-08||Life After Leverage
"You have to have the systems, staff and knowledge to manage these products if you buy them directly. "
"..service providers like Principia Partners have begun to offer products to these investors to enable them to more closely monitor cashflows, valuations and amortisation events."
|May-08||CDPCs Bring Some Liquidity to the Market
" Consequently, some CDPCs are providing high levels of transparency in portfolio reporting in order to reinforce their counterparty credit worthiness and their triple-A credit rating."
|May-08||Back to Basics: Asset Portfolio Management
|Apr-08||Getting off track
“ For banks that have more assets on balance sheet, there will be an increased push to securitise products through a single, consistent portfolio, which will make it easier for them to look at and manage overall exposures in a consolidated way. ”
Shortage of supply in the structured finance business?
|Mar-08||“... sponsors that need help managing risks attached to assets from troubled vehicles they took onto their balance sheets. ”|
ABCP Begins to Thaw
|Feb-08||Transparent Approach To Structured
“ ... moving the market towards increased risk management and surveillance of structured finance portfolios, whether on or off balance sheet.”
|Feb-08||Pushing for Transparency: The Key
to Luring Investors and Abating the Crisis
“So for an investor, it is really about integrating the multiple data sources into a single way of managing their portfolio.”
" That might involved a move from a market value structure into a cash flow structure."
|Jan-08||Transparency In Sight
"... will push more players to make a firmer commitment to improving systems, compliance, standardisation and increasing the level of detail provided to the investor base."
|Dec-07||CDO Boom and Bust
"... there will have to be an increased level of transparency and surveillance coming from dealers and data providers as well as increasingly sophisticated portfolio management software products for investors."
|Dec-07||Moody's Warns Over Ratings of Some SIVs|
|Nov-07||Talking Point: End of the Acronym?
We are certainly working through an extraordinary period, influenced by the current liquidity crisis
Long notes that a possible restructuring scenario could see a third party coming to repay the debt to the commercial paper investors
|Nov-07||Rescue Plan Faces New Pressure|
" The current market environment has underscored why the CDPC business model works"
"[in SIVs] ... there will, without doubt, be structural and rating methodology changes."
Balance Sheet Woes Raise Wider Concerns
"SIVs are differentiated from conduits and other structured products because by design they are never forced into rapid sales of assets and always have options. If they need to deleverage, they can do so in a slow, controlled and orderly manner."
" ..Principia SFP package as a “complete end-to-end processing” solution. It offers portfolio management – modelling assets, liabilities and hedging derivatives on a single platform; cashflow and exposure analysis, with a suite of liquidity and sensitivity analysis; and an operations and administration platform, including rating agency reporting.”
Move over CDOs.. SIVs are coming of age
“... the SIV is a combination of all the structured finance vehicles that have come before it.”
|May-07||Force of Nature (SIVs)
"Rating agencies are building on their expertise and making the market more transparent, software is becoming more widely understood and effective, and there is increased acceptance of these structured among the investor base."
|Apr-07||Principia Rolls Reporting, Accounting
Software for SIVs, SACs
"...this software helps the SIV model become more standardized from a rating agency perspective, and will allow them to reach the market quicker. "It's still an expensive process, and there are hurdles, but the quicker you can ramp up, the better-it's a real time-to-market thing."
More SIVs to come
|Apr-07||SIV Market Remains In Good Health
As New Vehicle Launches
"When you look at the early SIV world, it was driven by bank-sponsored SIVs." "Nowadays, investment managers and asset managers are involved too." "... the investment managers and asset managers see SIVs as an alternative vehicle that they can work with, and in some instances, they are CDO managers who are looking for diversification."
|Mar-07||CDPC + SIV = a longer, inevitable
“The lines are blurring. So you’ve got SIVs that are now going long and short credit, you’ve got CDOs using SIV techniques, and you’ve got CDPCs very much involved on the structured credit side.”
|Mar-07||Table Set for Increased SIV Activity
"...there can be hurdles in setting SIVs up, but once they grow they are an effective business strategy. In this environment, SIVs are attractive because they are efficient in terms of their use of capital."
Strive to Reach the Tipping Point
Companies specializing in writing insurance on credit default are starting to gain traction in both the US and Europe, answering a need for more methods to disperse risk in the rapidly growing derivatives market.
|Dec-06||Credit Product Companies Are In Vogue
Established as experts in the thriving business of selling protection on corporate defaults, these special vehicles - referred to as CDPCs - boast triple-A ratings, their own management boards and extremely high leverage potential.
possibilities are endless"
Repacking a Punch
Credit risk: Structured investment vehicles
SIV-Lites are the latest structured finance
vehicles to hit the market, combining aspects
of both CDO and SIV technologies.
Credit derivatives: A new breed
elite ranks of credit derivatives product companies
are set to grow, and the newcomers are establishing
vehicles that will be more flexible in their approach
to taking on credit risk.”
"There has been a cross-pollination of ideas
in structured finance. Firms are adopting commercial
paper techniques in their CDO business. Sophisticated
leveraging techniques used in the SIV space are being
adopted in the conduit and CDO market. Similarly,
convergence on the technology side is driving the
creation of hybrid structures."
PRODUCT LAUNCH Principia enhances ABS/MBS capability
with Intex integration
"The integration with Intex runs through
the core of the Principia application, the vendor
says, enabling a consistent view of historical
and projected cash flows throughout the system:
front office positions, risk or operations/accounting.
It also ensures consistent valuation across all
asset classes, applying Principia’s valuation
models for ABS/MBS instruments and their associated
"A portfolio management system that can manage
both sides of the balance sheet along with vanilla
and complex derivatives throughout entire product
life cycles will offer significant time and cost-saving
|Jun-05||"They're becoming what some call credit-derivative
trading companies or credit-derivatives vehicles," says
|Jun-05||"The framework [structured finance operating company] is intended to address demands in the industry for a unified platform that provides deal (portfolio, credit and liquidity) management in conjunction with automation of operationally intensive administrative tasks such as compliance reporting, accounting and maintaining an audited operating policy."|
|Jun-05||"...structured finance operating vehicles are
able to maintain strong processes through using systems
such as those that Principia offers."
|May-05||Pakistan's United Bank deploys Principia derivatives
" ...is the first of its kind: a straight-through-processing derivatives risk management system installed in Pakistan…"
|Feb-05||"Essentially these are groups of five to ten people
managing everything from deal capture of their assets
and liabilities to hedging up all their market risk and
|Feb-05||Banquo licenses Principia System
"In the current credit market the ability to
be able to incorporate proprietary ways of managing
and viewing credit within a single credit portfolio
management solution is critical."
|Jan-05||Start-up Eyes CDO Management
"...Principia is ideal for because it allows
a small firm with limited staff to be more efficient
in dissecting complex structures."