Royal Bank of Canada licenses the Principia System

Tuesday 10 February 2004 10:31 CET | News

Royal Bank of Canada has licensed the Principia System to manage the municipal GIC (Guaranteed Investment Contracts) business of RBC Capital Markets. The business will be managed out of New York.

The Principia System will provide RBC Capital Markets with full end-to-end management of their municipal investment contract business including the contract bid process, day-to-day portfolio management, risk management, reporting and accounting. Similar to asset-backed and mortgage-backed assets accounts, muni-GICs are subject to frequent fluctuations in the account balance. The ability to manage constantly changing and irregular cash flows, resulting from draws and deposits, is one of the many reasons RBC Capital Markets selected the Principia product. From a risk management perspective, the Principia System offers a full suite of risk tools including mark-to-market sensitivities and exposures to drawdown and extension risks, which are critical issues in managing a GIC book. To this end, the system maintains a historical time series of amortization and drawdown schedules (both actual and projected).

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Categories: Payments & Commerce | Payments General
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