About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

US Federal Home Loan Banks Live on Principia Structured Finance Platform for 15 Years

Subscribe to our newsletter

Principia Partners, a solution provider for the management and administration of structured finance investments, today announced that the US Federal Home Loan Banks (FHLBanks) of Atlanta, Boston, Cincinnati, Des Moines and New York have now been successfully using the Principia Structured Finance Platform (Principia SFP) for 15 years. The five regional home loan banks, which were among Principia’s earliest adopters, are currently using the platform to perform their debt issuance and associated hedge valuations, operational straight through processing and accounting activities.

While the application varies from bank to bank, the FHLBanks typically manage their debt issuance as well as a wide array of fixed income investments and complex hedging instruments using the software. The banks also found that Principia SFP was unique in its ability to accurately model and price the advances made to their community bank members. Often these products are structured with callable and embedded optionality features that are not handled well by other solutions.

Patrick Morgan, CFO at FHLBank of New York said, “Principia is integral to the ongoing investment analysis and automated processes that drive our entire trade lifecycle management. Its provision of data and powerful analytics ensure accurate valuations and the effective risk management of our investments, debt issuance and hedging positions so that we can more easily provide readily available, low-cost funding for our members. Streamlining these processes into Principia’s reporting and accounting framework has helped to eliminate operationally intensive tasks and processes – in particular it has ensured we maintain compliance with complex accounting requirements such as ASC 815 (formerly FAS 133) for many years.”

Usage of the platform has expanded significantly as Principia has worked with the FHLBank sector. The platform is now also used by the banks for its extensive reporting capabilities, workflow control and automated accounting. From front to back office, the banks are able to analyse highly structured fixed income investments, including Asset Backed and Mortgage Backed Securities and value associated hedges, issued debt and FHLBank advances. On the same system they can then summarise the resulting accounting entries to accurately and more efficiently assess and report on the effectiveness of hedging relationships.

“Maintaining these key strategic relationships with our long standing clients in this rapidly changing marketplace is very rewarding and has been vital to our own ongoing growth and success. We are pleased that our drive to deliver the dedicated functionality and support required by these important US government institutions has helped them to achieve their organisational goals. We look forward to working with our existing FHLBank clients and the remaining institutions in the Federal Home Loan Banking System to help them benefit from the latest developments to our software,” states Theresa Adams, CEO and president of Principia Partners.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Real world data governance – Practical strategies for data ownership

The theories of data governance and ownership are well rehearsed. Essentially, data governance includes rules and processes that make data accurate, compliant and accessible, ensuring the right users can access trusted data as and when they need it. Data ownership assigns responsibility and accountability for a specific dataset to an individual or team that can...

BLOG

Bloomberg Collaboration with Google Cloud Increases Access to Data And Analytics

Bloomberg continues to invest in cloud data access with an offering that enables customers of Google Cloud to accelerate their data strategies through the integration of Bloomberg’s cloud-based data management solution, Data License Plus (DL+), with BigQuery, Google Cloud’s fully managed, serverless data warehouse. The collaboration also allows mutual customers to access Bloomberg Data License...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Entity Data Management

Entity data management has historically been a rather overlooked area of the reference data landscape, but with the increase focus on managing risk, the industry is finally taking notice. It is now generally agreed to be critical to every financial institution; although the rewards for investment in entity data management appear to be rather small,...