German bank WestLB has licensed technology from New Jersey-based Principia Partners to manage its new structured investment vehicle (SIV), Harrier Finance Ltd.
SIVs capitalise on the arbitrage between the investment grade securities that they purchase and the shorter-term commercial paper and medium term notes that they issue.
Harrier Finance will integrate the Principia System with its existing portfolio and risk management tools to manage the SIV operation, from the deal capture through to accounting.
WestLB will also use the system's pricing, risk and analytical capabilities to produce regulatory and management reports required to sustain rating agency approval.
Ken Bigelow, executive director, WestLB, says: "We needed a software platform that would enable seamless front-to-back straight-through processing of a broad array of financial instruments while simultaneously integrating with existing tools to support our business flows."