Press Release
Federal Home Loan Banks Office of Finance licenses the Principia System for fixed income analytics
System supports analytics, deal capture and risk management
Jersey City, New Jersey, November 20, 2003 – Principia Partners LLC, a leading provider of full front-to-back office systems for global capital markets, today announced that the Federal Home Loan Banks (FHLBanks) Office of Finance has licensed the Principia System to support fixed income analytics. The system is scheduled to go live by the end of 2003.
The Office of Finance is the debt issuing facility for the US-wide network of FHLBanks, liaising with securities dealers to fund FHLBank activities. Principia offers the facility a sophisticated debt analysis solution, with the powerful analytics necessary to support deal capture, pricing and risk measurement and relative value analysis for a wide variety of agency bonds and derivatives.
Using Principia’s valuation platform, the Office of Finance will be able to provide the FHLBanks with consistent and timely data comparing various debt structures as well as a historical database. A number of the regional FHLBanks are currently using the system to manage their fixed income and derivatives business processing.
Debbie Cohen, Senior Director Planning and Research, FHLBanks Office of Finance, comments: “The FHLBank System has worked with Principia Partners since 1996, when several of the regional Banks implemented the Principia System for financial modeling, derivatives valuation, market risk and credit risk management. We wish to provide a common valuation engine and Principia was an obvious choice.”
The Principia System offers advanced modeling and pricing capabilities, which greatly enhance the accuracy of pricing by incorporating subtleties such as LIBOR basis, cross-currency basis, and supply/demand skewing of volatilities. The system’s risk management tools are comprehensive, allowing users to calculate and monitor risk both on individual transactions and across entire portfolios. Valuations are performed using consistent methodologies on a common platform to preserve integrity throughout the entire trade lifecycle, from trade inception through to regulatory reporting and FAS-compliant accounting.
“We are delighted that the Office of Finance has selected us to provide a common analytic platform for the FHLBanks, further strengthening the longstanding business relationship we share with the FHLBank system,” states David Boldon, Global Head of Sales at Principia Partners. “We are committed to providing innovative and adaptive solutions to this important market sector.”
The FHLBanks have over 70 years of innovation and service to the U.S. housing market, and currently have over 8,000 members in all 50 states, American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands.
About Principia Partners
Founded by a group of finance and technology professionals,
Principia Partners offers a fully integrated front to back office
solution for management of financial assets, liabilities and derivatives.
The Principia System covers fixed income (including ABS/MBS and
GICs), interest rate, foreign exchange, credit and equity indexed
products. The sub-ledger facilitates full compliance with both
FAS 133 and IAS 39 accounting regulations. Principia's target market
consists of capital markets groups requiring sophisticated and
flexible processing capability on a robust, yet customizable platform.
For more information about Principia, see www.principiapartners.com.
Principia Partners is headquartered at the Harborside Financial Center, Jersey City, New Jersey, USA with an office at 1 Cornhill in London, UK.
About Federal Home Loan Banks Office of Finance
Located in Reston, Virginia, a suburb of Washington, DC, the
Office of Finance (OF) is operated on behalf of the 12 regional
FHLBanks. Its primary function is to cost-effectively issue and
service all debt securities for the FHLBanks. The OF also assists
in the analysis and development of new funding opportunities, compiles
brochures and data, and is active in conducting investor outreach.
In addition, the OF provides the FHLBanks with credit and capital
market data, and prepares the combined financial reports.
The Federal Home Loan Bank System supports residential mortgage lending and community investment at the local level by providing primary and secondary mortgage liquidity to member financial institutions. Currently, there are 8,000 members located across the US. Each member is a shareholder in one or more of the 12 regional FHLBanks, which are privately capitalized, separate corporate entities.
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