Press Release
WestLB licenses the Principia System to manage its expanding SIV business
Jersey City, New Jersey, March 2, 2004 - Principia Partners, a leading provider of investment management software to the structured finance industry, today announced that WestLB has licensed the Principia System to manage its new Structured Investment Vehicle (SIV).
SIVs are independent, bankruptcy-remote entities, often sponsored by large banks, that capitalize on the arbitrage between the highly-rated investment grade securities that they purchase ,such as asset-backed securities, and the shorter-term commercial paper and medium term notes that they issue.
The WestLB vehicle, named Harrier Finance Ltd., will integrate the Principia System with their existing portfolio and risk management tools to manage the entire SIV operation from the deal capture through to accounting. WestLB will leverage the system’s advanced pricing, risk and analytical capabilities to produce the required regulatory and management reports required to sustain rating agency approval.
Since a SIV’s funding ability is dependent on the ratings of its financial offerings, the vehicle requires an advanced pricing/risk management and operations system to ensure it adheres to strict portfolio management and reporting policies of the rating agencies.
“We selected Principia because it offers the most efficient and proven solution that can be rapidly implemented. The company has extensive experience working with SIVs and the product is widely recognized by the industry as well as the rating agencies,” states Ken Bigelow, executive director, WestLB. “We are confident the solution will support our growth both in volume and product complexity.”
The Principia’s System ability to handle a wide range of assets (including ABS/MBS), liabilities and derivatives (including credit derivatives) was another important consideration in the decision process. “We needed a software platform that would enable seamless front-to-back straight-through processing of a broad array of financial instruments while simultaneously integrating with existing tools to support our business flows. After an extensive review of several vendors and in-house systems, Principia was the obvious choice,” states Bigelow.
“We are delighted to count WestLB as one of our SIV customers,” states Brian Donnally, one of the founding partners at Principia Partners. “As a leading provider of financial services to the global securitization industry, their selection of the Principia SIV solution is a testament to our product’s capabilities as well as our commitment to the structured finance industry.”
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.
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