Press Release
EBRD selects the Principia System to consolidate market and credit risk portfolio management operations
Jersey City, NJ - 15 August, 2005 - Principia Partners LLC,
a leading solutions provider to the structured finance industry
and capital markets/treasury markets, announced today that the
European Bank for Reconstruction and Development (EBRD) has licensed
the Principia System to drive its Treasury’s initiative for
an integrated credit and market risk portfolio management system.
EBRD’s Treasury initiative, named the Integrated Credit and Market Risk Portfolio Management System (IPMS), will provide more accurate pricing of credit-based products in conjunction with other financial assets and liabilities. The Principia System will also enable EBRD to enhance its analysis of expected cross-asset portfolio returns across assumptions based on macro economic models and scenarios. These variables include: inflation, interest rates, recovery rates, credit spreads, credit migration, default probabilities and equity market volatility.
“We selected Principia based on its ability to capture and price the myriad financial instruments we trade and provide a common framework for pre-trade and post-trade risk analysis,” stated Axel Van Nederveen, Treasurer at EBRD. The supranational bank, owned by 60 countries and two intergovernmental institutions, is the largest single investor in a region spanning 27 countries from Central Europe to Central Asia. The Bank’s Treasury manages a range of financial activities including: management of the Bank’s liquidity, funding in the capital markets, asset and liability management as well as pricing and hedging Bank transactions. As a result, it makes use of a wide variety of instruments, from money markets to securities, including interest rate and credit derivatives.
“We are delighted to be part of the EBRD’s Treasury investment management solution,” states Theresa Adams, President and CEO of Principia. “We look forward to delivering a solution that meets the demanding requirements of the EBRD’s dynamic trading and risk management strategies.”
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