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Press Release

Principia Delivers OIS Discounting to Support New Derivative Market Standards

New York, NY – Nov 8, 2011 - Principia Partners, a leading software solution provider for structured finance and capital markets investors, today released the latest version of its Structured Finance Platform (Principia SFP). Principia SFP Version 6.6 delivers enhanced valuation capabilities to support the shift in derivatives markets towards Overnight Index Swap (OIS) discounting, providing clients with the flexibility to adopt OIS discounting for collateral calculations and valuation of their derivative positions.

Principia SFP provides an end-to-end platform for the portfolio management, risk oversight, compliance reporting and accounting of derivative and fixed income investment portfolios. Version 6.6 allows users to apply the new discounting standards for ad-hoc valuations, for the entire portfolio, or for any given sub-set of positions and compare OIS with existing Libor discounting to assess the impact of these market changes.

OIS based valuations for most major currencies can be applied at any stage of the derivative portfolio management lifecycle, with seamless integration and downstream calculations applied through risk management, mark-to-market reporting and into accounting. As the OTC derivatives market moves towards central clearing, the overnight indexed swap (OIS) rate is increasingly seen as the benchmark ‘risk free’ rate when performing discounting valuations.

“For 15 years Principia’s proven analytical framework and delivery of integrated portfolio management solutions has enabled clients to successfully evolve with market changes,” said Douglas Long, EVP, Business Strategy, Principia. “Derivatives players remain uncertain about how to operationally apply OIS discounting consistently from front to back office or the affect it will have on their business. With our online solution, users can rapidly assess the impact of OIS based pricing across their portfolio with the flexibility to apply OIS discounting when trading, analyzing cashflows, testing hedge effectiveness, doing mark-to-market valuations or for accounting.”

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