LONDON, 26 March 2015—Quaternion Risk Management Limited (“Quaternion”), provider of specialised risk analytics consultancy, services and software, is now powering InCol. InCol structures and sources cost efficient senior secured term debt for rated and non-rated financial institutions.
Quaternion’s risk engine performs complex analytics and is the lynchpin of the InCol Intelligence platform. The platform allows issuers of, and investors in, senior secured term debt to optimise their positions and to assess where and when opportunities arise. It facilitates the unlocking of quality collateral pools from new issuers which can be matched with secured term debt investors’ requirements.
The key benefit of InCol’s offering for issuers is the access they gain to previously unavailable debt markets to raise cost efficient new funding. For investors, there is access to a new range of highly rated debt issues at superior risk adjusted returns across a familiar issuer and collateral class. Incol Intelligence enables investors to reverse enquire using sophisticated analytical tools and to continually monitor, analyse and stress test the mortgage collateral pools backing each investment.
“To provide such a quality service (currently available only to the largest institutions, given the complexity of the sophisticated pricing and risk analytics required), we wanted a partner not only highly experienced in the market, but also with the flexibility and technical ability to turn concept into reality,” said Paul Somers, MD of InCol. “We needed a platform that was fit for purpose for the new banking and regulatory paradigm, whilst enabling small and medium sized financial institutions to benefit from efficient access to the secured term debt markets previously only available to their larger peers and at the same time providing debt investors with unrivalled transparency. Quaternion was our choice and they delivered beyond our expectations.”
“As bank practitioners, we have first-hand experience of implementing and managing the sorts of debt structures required by InCol’s ground breaking offering,” said Donal Gallagher, MD, for Quaternion; “Our proprietary Quaternion Risk Engine (‘QRE’) and CLO model were the ideal and quickly implemented base for the solution. We are delighted to be part of such an exciting new initiative.”
Contact:
Caroline Tonkin, + 44 (0)7900 287361 or caroline.tonkin@quaternionrisk.com
– Ends –
Notes to Editors
About Quaternion Risk Management – http://www.quaternionrisk.com
Quaternion Risk Management Ltd was founded in 2010 by three senior banking professionals with extensive capital markets experience. It is an Irish registered company. Increasing demand for our services is driving rapid growth of the Quaternion team and led to the formation of UK and German subsidiaries in 2011, with a representation starting in Switzerland in 2014.
Our clients are all participants in the capital markets around the world. They encompass investment banks, the capital markets arms of universal banks, state-sponsored financial institutions, insurance companies and asset managers. To date we have worked with such clients in Germany, Switzerland, UK, Ireland and the Middle East.
Quaternion’s services range from senior advice to concrete implementation with a focus on the quantitative aspects of the risk management, trading and finance functions. Our services are backed by the extensive experience of senior Quaternion consultants and partners in the areas of risk organisation remediation, quantitative analysis, bespoke software solutions, project and programme management, and training; as well as provision of our proprietary risk engine.
Consulting Services: Quantitative analysis for derivatives and other highly structured products; bespoke pricing and risk system design and implementation.
Validation Services: Independent pricing and risk model validation and review; valuation of complex asset and derivative portfolios; review of in-house quantitative development; independent stress testing and back testing.
Quaternion Risk Engine: Quantlib-based proprietary software optimised for performance to support market, credit and liquidity risk and CVA analytics and reporting.
About InCol – http://www.incolfunding.com
Institutional Collateralised Funding (“InCol”) is a specialist funding enabler, founded by a group of treasury and banking professionals, which opens previously inaccessible channels to wholesale term funding for rated and non-rated financial institutions. InCol provide a solution to access the debt capital markets in respect of senior secured and dated subordinated funding for institutions that have never previously had visibility within these markets.
By providing unique transparency and analytics in respect of pools of residential mortgage collateral, InCol facilitates recurring cost efficient capital markets access for issuers and high grade investment opportunities for debt investors.
InCol’s Background – InCol has a wealth of experience across banking, treasury, securitisation and capital markets, and have an extensive background in the raising of short, medium and long term vanilla and structured funding. In addition, InCol has considerable buyside experience in respect of senior, structured, subordinated and hybrid bank capital debt instruments.