Structured Finance Risk Management Software

Structured Finance Platform

Principia's Structured Finance Platform is a dedicated, out-of-the-box solution for structured finance investors and capital markets participants.

The system consolidates and automates deal analysis, valuation, portfolio management, risk surveillance, compliance management and financial reporting across ABS, MBS, Covered Bonds and other structured credit and fixed income assets. Full lifecycle management of these assets and their associated hedges and liabilities is delivered on a single operational platform, increasing efficiency, transparency and control in the management of structured finance investments.

Portfolio managers, risk groups, and operations staff are able to focus on their core activities and make more confident investment decisions with a single dynamic view, and way to manage, credit and market risk across the structured finance and capital markets business:

  • Independently evaluate every deal, monitor collateral performance & forecast cashflows;
  • Independent valuations and risk assessments for vanilla and complex derivatives;
  • Incorporate multi-curve and OIS discounting into valuations and risk assessment;
  • Proactively monitor & reveal risks & stress test internal or third party assumptions;
  • Automate structured finance reporting and maintain compliance with risk & investment guidelines;
  • Consolidate operations and implement controls across portfolios and business areas.

The platform is available and proven both as an onsite implementation, or as a fully hosted, Software-as-a-Service platform over the web.

Additionally, Principia leverages the platform to provide a streamlined derivative portfolio valuation, risk reporting, and hedge accounting subscription service, pasVal. With pasVal, once deals are uploaded, users have access to daily calculations and reports which they can configure and download.


Structured finance portfolio

Know Your Investments

Master Investment Due Diligence
  • Bring assets, liabilities and hedges together in one view to analyze across deals and portfolios
  • Unify performance data and cashflow models from multiple sources (e.g. Intex, Lewtan, Moody's)
  • Evaluate third party valuations and apply forecasting to project future cashflows
  • 'Slice and dice' investments by any combination of collateral, deal or portfolio characteristics

Proactively Manage Risk
  • Query portfolio exposures (e.g. asset, geography, ratings) and performance
    exposures (e.g. 30 day delinquency, LTV etc) across deals, portfolios and business units
  • Stress portfolios by default, prepayment or interest rates to better predict future behavior
  • Full suite of standard and customizable structured finance deal cashflow,
    performance, portfolio and compliance reports
  • Reduce barriers to maintaining accurate and timely internal, investor and regulatory compliance e.g. EU CRD Due Diligence requirements (Article 122a) and US Market Risk Capital Rules

Streamlined Operations
  • Centrally manage all portfolios (on/off-balance sheet) for a complete view and total control
  • Operational backbone from portfolio management through risk control and into accounting
  • Eliminate inconsistencies and maintain audit control from front to back office
  • Establish rules based workflows to ensure operational compliance and efficiency
  • Address regulatory and internal due diligence requirements now and evolve with future operational credit analysis demands.

Consistently delivering market specific functionality, Principia SFP sets the benchmark for structured finance. No other commercial or in-house system offers the same breadth of integrated functionality or product coverage. This includes market-ready investment analysis, accounting and operational reports and workflows for rapid implementation, as well as a fully customizable framework to create business specific workflows, reports and processes.

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Structured Finance Platform: ABS MBS CDO Structured Fixed Income