The European Bank for Reconstruction and Development (EBRD) is implementing technology from US-based Principia Partners to support its integrated credit and market risk portfolio management system (IPMS) at its treasury department.
EBRD's IPMS system will provide accurate pricing of credit-based products in conjunction with other financial assets and liabilities.
The vendor says its Principia System will enable EBRD to enhance its analysis of expected cross-asset portfolio returns across assumptions based on macro economic models and scenarios. Variables include inflation, interest rates, recovery rates, credit spreads, credit migration, default probabilities and equity market volatility.
Axel Van Nederveen, treasurer at EBRD, comments: "We selected Principia based on its ability to capture and price the myriad financial instruments we trade and provide common framework for pre-trade and post-trade risk analysis."