Press Release
Channel Capital Advisors selects Principia SFP in its launch of a new Credit Derivative Product Company (CDPC)
Software chosen for use
in the risk management and reporting of Channel Capital PLC,
an Irish CDPC
Jersey City, NJ – 20th March 2007 – Principia Partners, a leading
solution provider for the management and administration of structured finance
operations, announced that Channel Capital Advisors LLP has licensed Principia
SFP as the technology application and risk management software in its management
of Channel Capital plc, a new Credit Derivative Product Company (CDPC).
The system will manage transactions from deal capture and risk management
through compliance reporting.
The CDPC will principally write credit protection on AAA rated
tranches of portfolios of corporate and sovereign obligors. Channel Capital
plc is expected to be extremely efficient even in current tight credit spread
market conditions due to its use of a multiple-tranche capital structure,
a low velocity business model, and other operational and structural enhancements
of its business model.
“We selected Principia because it provides strong operational
capabilities in a proven framework that has been the backbone of various
existing
SIVs, CDPCs and structured finance operations,” states Walter Gontarek,
Senior Partner and CEO of Channel Capital Advisors. “Principia will
facilitate our ability to satisfy the technological infrastructure
req uired to expedite the successful launch of our platform and
support on-going risk
management requirements of the CDPC. In the long run, we anticipate
it will help our business scale both in terms of an ever growing
credit derivatives
portfolio size and to exploit new asset class opportunities.”
Principia’s operational processing platform is uniquely designed for
structured finance institutions who are required to produce capital, liquidity
and portfolio risk reporting on a regular basis to rating agencies. In order
to continue receiving high counterparty credit ratings from those agencies,
CDPCs are required to adhere to strict operating guidelines that define
various aspects of operation ranging from types of credit transactions,
portfolio composition and asset eligibility.
Gontarek goes on to say, “Principia also demonstrated a commitment
to support the ever-expanding range of structured credit instruments. The
software supports our eligible investments, liabilities and hedging derivatives
as well as a complete range of first and second generation credit derivatives
including single-name credit default swaps (CDS), basket swaps, CDS on structured
finance securities and single-tranche CDOs.”
Principia SFP enables management and administration of single or
multiple structured finance operations, on a single system. This includes;
ABCP conduits, securities arbitrage conduits, structured investment vehicles,
credit derivative product companies and guaranteed investment contract programs.
“Channel’s business model is a perfect example of how the structured
finance market is converging and cross-breeding capital structures
and technologies in order to deliver greater value to investors. We are delighted
to be working
with clients who can truly leverage the breadth and depth of our
structured finance platform,” states Theresa Adams, CEO and Partner
at Principia Partners.
About Principia Partners
Principia Partners is a leading provider of advanced end-to-end
processing solutions for structured finance and capital markets. The Principia
SFP solution helps structured finance operations reduce risks and costs
associated with their management and administration. It is a robust end-to-end
platform designed to meet the common needs of structured finance operations,
yet has the flexibility to meet the unique structuring and intensive processing
requirements of the various types of operations. For capital market participants,
the Principia System enables unified portfolio management, risk management
and operations on a single 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. Its sub-ledger facilitates
full compliance with both FAS 133 and IAS 39 accounting regulations.
Principia Partners is headquartered at the Harborside Financial Center, Jersey City, New Jersey, USA with offices in London, UK and Conshohocken, PA, USA.
For press information contact:
Shamira Alidina
Metia
101 St. Martins Lane
London WC2N 4AZ
Tel: + 44 (0) 20 3100 3698
Fax: + 44 (0) 20 3100 3770
Email: shamira@metia.com