Principia Partners upgrades ABS/MBS product
10 November 2005 | 1613 views | 0
Source: Principia Partners
Principia Partners LLC, a leading technology provider of comprehensive front-to-back office solutions for managing highly complex, structured financial assets, liabilities and derivatives, today announced a significant upgrade to its ABS/MBS product utilizing the Intex database.
As part of the Principia System's latest release, the enhanced product addresses two of today's leading issues in the operational management of asset-backed and mortgage-backed securities: the ability to process ABS/MBS instruments from deal capture through to accounting; and the ability to value and monitor ABS/MBS instruments in conjunction with other portfolio assets and derivatives using a consistent valuation model and analytical framework.
"One of the biggest challenges in the industry is managing the operations and accounting of dynamically changing prepayment and cash flows of structured ABS instruments. The Principia solution offers an unparalleled combination of abilities to operationally process ABS/MBS instruments on the same platform used for valuation and analysis. This level of integration is key to reducing operational risks, costs incurred from managing multiple systems and reconciling disparate valuation models," states Dr. Douglas Long, EVP-Business Strategy at Principia, "the partnership with Intex provides the Principia System with the functionality to address the issues currently facing this marketplace."
The Principia ABS/MBS solution is unique in its integration to the Intex database, which models over 14,000 ABS deals. The latest Principia release enables users to produce more timely and accurate accounting and position keeping with the ability to override or control interest amounts and factors in advance of available market data. This allows users to access and further manipulate the industry standard data set in order to complete accounting and operational processes accurately and on time. Paying agent and trustee information is then automatically reconciled with the Intex data as it becomes available. Moreover, the system captures and maintains all historical cash flows back to trade date. This archival capability is an essential component for meeting the requirements of FAS91-compliant accounting as well as those of other regulatory and audit control policies.
The integration with Intex runs through the core of the Principia application, 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 advanced valuation models for ABS/MBS instruments and their associated hedging derivatives.
"We are delighted to partner with a vendor such as Principia who continues to advance more flexible and comprehensive ABS/MBS solutions for the structured finance industry," states Jim Wilner, vice president of Intex, the leading provider of comprehensive data and models for the structured fixed-income market. "The Principia solution enables users of our product to leverage our data and robust analytics in the front and middle office, and then seamlessly process the instruments downstream for accounting and operations."