Principia Partners, a solution provider for the management and administration of structured finance portfolios, has enhanced its platform to help investors standardise the ongoing integration of structured finance bond trustee data. As a result, investment managers can better define, analyse and report on bond level information for RMBS and other structured credit asset classes, supporting market standards being proposed by the American Securitisation Forum (ASF) and the European Securitisation Forum (ESF).
The interface includes a standard set of bond issuance data descriptors that enables investors to map trustee data directly into their systems. Within Principia SFP, tranches can be evaluated in the context of the original securitisation or across all the deals being managed in a portfolio. The platform also allows this data to be analysed alongside collateral pool performance data from any given source.
“Expanding pool and loan-level disclosure to investors, both pre- and post-issuance, is critical to restoring confidence in securitisation transactions,” said Tom Deutsch, deputy executive director, ASF. “This new raw data in standard formats, as well as the tools to analyse it, gives investors the ability to better compare transactions, apples to apples.”
Structured credit investors can select and monitor standard bond characteristics, such as those being recommended by the ASF and ESF for RMBS, as well as the issuance data for all other structured finance assets. Custom fields can also be specified to address individual requirements. Investors can then consistently monitor and react to changing deal information throughout the lifecycle of a security. Organisations can set limits, flag deals and monitor triggers that have been established within the indenture of a securitisation, to track and maintain compliance over time.
Bond level trustee data (for example static data such as names of swap providers, the servicer and the original balance; or dynamic data such as the percentage of fixed rate loans, principle paid and credit enhancement applied), can be processed on receipt of updated trustee and servicer reports. Investors can monitor changes to the deal structure at a glance (for example percentage of loans outstanding by geography) to make informed assumptions about the performance of underlying collateral. This helps to identify the performance metrics that should be in place at any given time.
“The ASF’s and ESF’s efforts are playing a major role in ensuring that best practices are in place for the return of a stable and functioning securitisation market,” said Douglas Long, executive vice president of business strategy, Principia. “The developments to Principia SFP aim to help market participants adapt to changing standards as they are introduced and ensure clients have the operational infrastructure they require to consistently understand their structured finance investments over time.”