Principia Announces New Integrated ABCP Conduit Solution

New product leverages Principia SFP to address market need for integrated deal management, operational processing and regulatory compliance

Jersey City, NJ – January 24, 2006 – Principia Partners LLC, the leading solution provider for structured finance operations, today announced the debut of a new solution for the management and administration of ABCP (asset-backed commercial paper) conduits. This new solution is built on Principia SFP, an integrated structured finance platform that reduces the risks and costs associated with managing structured finance operations.

Principia’s ABCP Conduit solution addresses major challenges for administrators and managers of conduits, by providing intuitive daily deal and position management that drives automated processing of invoices, advices, accounting entries and reporting (regulatory, compliance and management). "This level of automation dramatically reduces the amount of manual intervention required of conduit operators," states Dr. Douglas Long, EVP – Business Strategy at Principia. "Furthermore, all transactions are tracked to ensure program transparency and the proper audit control required to meet myriad regulatory requirements, thereby minimizing operational risk and costs."

ABCP conduits are special purpose vehicles that issue highly-rated commercial paper backed by diversified assets, liquidity support and credit enhancement. The programs are usually designed to reduce balance sheet regulatory capital or to obtain low-cost short-term funding for banks and other corporate entities.

The Principia conduit solution is flexible and scalable, enabling managers to add new deals or conduits, or different structured finance vehicles, intuitively and with minimal effort. A key strength of Principia SFP is the ability to rapidly deploy, execute and maintain structured finance operations. These include ABCP conduits, securities arbitrage conduits, structured investment vehicles, credit derivative vehicles and guaranteed investment contract issuers.

Principia SFP leverages more than a decade of experience in providing and implementing solutions for structured investment vehicles, guaranteed investment contract issuers, and credit derivative vehicles, supporting 50% of those businesses covered by a rating agency under its methodology for rating structured financial operating companies.

"In order to maintain the high credit ratings of their issuances, structured finance vehicles are managed against extremely stringent operating and risk guidelines," comments Dr. Long. "Principia SFP automates compliance with these guidelines so that managers of the business can focus on growth and profitability objectives." Comprehensive asset structuring capabilities, coupled with broad coverage of financial instruments within a flexible platform, facilitate rapid growth or entry into new businesses as market opportunities arise. A full suite of operational and reporting tools enable vehicles to meet the rigorous requirements of third parties and rating agencies during ramp-up and on an ongoing basis.

"The structured finance industry is enjoying unprecedented growth, undergoing rapid transformation as best of breed techniques begin to converge,” states Theresa Adams, President and CEO of Principia. “Principia SFP is of tremendous value to our clients in that it cost-effectively meets the common, straight-through processing needs of structured finance operations, yet is adaptive enough to address the evolving structuring and workflow requirements of many different vehicle types."

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