Press Release
Rabobank licenses the Principia System to manage new muni-GIC business
Integrated platform for product modeling, risk management and
reporting
Jersey City, New Jersey August 26, 2003 – Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that Rabobank International, New York Branch ("Rabobank") has licensed the Principia System to support its municipal GIC (Guaranteed Investment Contracts) operations.
GIC portfolio managers have extensive reporting responsibilities to rating agencies, investors and internal management. The Principia System will allow Rabobank to maintain audit trails of these continually changing contracts, enabling the bank to provide complex reporting and accounting functions. The solution will also equip Rabobank with a sophisticated analytics framework and flexible operational processing functionality to effectively manage GICs.
The Principia System will provide Rabobank with full front and middle office support including deal capture, simulations, hedging and pricing. The system will also support risk management, historical evaluations, audit and compliance and middle office functions including reporting, data management and workflow management.
Rabobank will also benefit from accurate pricing and advanced risk management in order to manage the complexity of GIC securities. The Principia System provides full deal capture on highly structured GIC products as well as assessing mark-to-market sensitivities and exposures to drawdown and extension risks, which are critical issues in managing a GIC book. The Principia System will maintain a historical time series of amortization and drawdown schedules (both actual and projected), eliminating the need for manual intervention.
Rabobank’s technology search determined that Principia Partners offered the most cost-effective solution, a comprehensive out-of-the-box product that offered rapid time to value. John Gallagher, Executive Director, Rabobank, states: “Principia Partners will give us the tools required to make an accelerated entrance into the Muni-GIC market. As a new provider we require a comprehensive and integrated portfolio management system. For this function we have chosen Principia. From a technology standpoint, its integration framework will facilitate interfacing with our existing operations infrastructure which includes our general ledger and enterprise risk management system.”
Theresa L. Adams, one of Principia’s founding Partners, states: “Rabobank, which has its roots in co-operative banking, has maintained close ties with local communities. This background means that it is ideally positioned to provide municipal GICs, which are typically used to fund local development projects. We are proud to be involved in the launch of Rabobank’s muni-GIC business, and look forward to supporting its future initiatives in this marketplace.”
In addition to municipal GIC processing and risk management, the Principia System will provide support for associated product line assets and derivatives. The system will also be used to structure and manage other tangential businesses including collateral assets and other financial instruments. Employing a comprehensive framework and consistent analytics across liabilities, assets and derivatives is critical to efficiently supporting a structured product line.
About Principia Partners
Principia Partners is a leading provider of advanced end-to-end
processing solutions for the structured finance and capital markets/treasury
markets. The Principia System is a unified portfolio management,
risk management and operational platform that manages a wide range
of vanilla and structured fixed income (including ABS/MBS and GICs),
interest rate, foreign exchange, credit and equity indexed products.
The system is used by a broad range of financial institutions, insurance
firms and capital market groups.
Principia Partners is headquartered at the Harborside Financial Center, Jersey City, New Jersey, USA with an office at 1 Cornhill in London, UK.
For press information contact:
Shamira Alidina
Write Image
271 Regent Street
London W1B 2BP
shamira@write-image.co.uk
Tel: + 44 (0) 20 7959 5450
Fax: + 44 (0) 20 7493 5499
Email: shamira@write-image.co.uk