If you’re not using an automated feed to import your investments into your QRM System (or any other A/LM system for that matter), then contact TPG! We can build an automated solution from our Portfolio Genius System to feed into your QRM A/LM based upon your specififcations.

If you are interested in finding out more about how we can streamline your processes and reduce your opportunity for errors, please contact us at 713.974.1375 or sales@thegenius.com.

For more information about QRM, please visit www.qrm.com.

TPG has added another data source, the Interface to JP Morgan PricingDirect.

This bi-directional interface, compatible with both the Portfolio Genius and Derivative Genius Systems, provides users the ability to retrieve pricing data on the items in the portfolio—including derivative instruments. As with any of our interfaces, functionality is dependent upon the data provider to provide data according to its business policies and a separate subscription to the data provider is required.

If you are interested in finding out more about this new Interface to JP Morgan PricingDirect, please contact us at 713.974.1375 or sales@thegenius.com.

For more information about JP Morgan PricingDirect, please contact:

Ira Barry
Vice President
JP Morgan | PricingDirect®, Inc.
312.732.5712
ira.barry@jpmorgan.com

On June 30, 2010, the Federal Financial Examination Council (FFIEC) issued supplemental instructions regarding various reporting matters, including the reporting of other-than-temporarily impaired (OTTI) investments. Users of TPG’s FAS investment accounting software, the Portfolio Genius System, can rest assured that their OTTI losses are reported in accordance with these supplemental instructions.

According to the supplemental instructions,

For other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities that occur during the current calendar year-to-date reporting period for the Call Report, banks should report the total amount of such losses, the portion recognized in other comprehensive income (before income taxes), and the net impairment losses recognized in earnings in Call Report Schedule RI, Memorandum items 14.a, 14.b, and 14.c, respectively. For other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities that occur during the current calendar year-to-date reporting period for the Call Report, banks should report the total amount of such losses, the portion recognized in other comprehensive income (before income taxes), and the net impairment losses recognized in earnings in Call Report Schedule RI, Memorandum items 14.a, 14.b, and 14.c, respectively. Other-than-temporary impairment losses on held-to-maturity and available-for-sale debt securities that must be recognized in earnings.

The supplemental instructions also discuss OTTI losses related to factors rather than credit loss, but the bottom line is this: now, more than ever, it is imperative that your accounting system produce accurate and verifiable reports in accordance with the latest regulatory pronouncements.

Portfolio Genius, our institutional investment accounting software system, has been updated to address changes the National Credit Union Administration (NCUA) made to Schedule B of the 5300 Call Report.

The NCUA further delineated how amounts invested in “Other Mortgage-Backed Securities” is reported.

• Line 3.a.ii is used to report the amount invested by Federal Credit Unions in privately-issued securities that does not meet the requirements to be considered a mortgage-related security (i.e. downgraded below the two highest rating categories) after purchase.
• Line 3.b is used by State Credit Unions to report the amount invested in privately-issued securities that fails to meet  the requirements to be considered a mortgage-related security (i.e. downgraded below the two highest rating categories or backed by second lien mortgages) after purchase, and mortgage pass-through securities that were not issued by a government entity.

Portfolio Genius allows users, when setting up customer portfolios, to designate the type of institution (State Credit Union, Federal Credit Union), indicate if the security is backed by a first or second lien mortgage, and capture ratings on the security. This information is then used to pass information to the 5300 Call Report efficiently and accurately.

 

 

Designate how the security is backed

Ratings determine where the information appears on the call report

 

Institution types include "State Credit Union" and "Federal Credit Union"

The Portfolio Genius Module for SWIFTNet FIN provides connectivity to the SWIFT network through use of the SWIFT Alliance Access. It is a file-based delivery module between Portfolio Genius and SWIFT, and connects to the SWIFT Computer Based Terminal (CBT) by file.

It uses the Logical Message Format (LMF), an XML representation of the SWIFT message set that allows for integration with internal systems.

The following messages are supported:

Settlement

• MT 540 receive free instruction
• MT 541 receive against payment instruction
• MT 542 deliver free instruction
• MT 543 deliver against payment instruction
• MT 544 receive free confirmation
• MT 545 receive against payment confirmation
• MT 546 deliver free confirmation
• MT 547 deliver against payment confirmation
• MT 548 settlement status and processing advice
• MT 578 settlement allegement

Our Portfolio Genius System, our institutional investment portfolio and accounting software, has several inherent features that provide flexible use of the application with respect to international fixed income. For example, the database that is delivered with the Portfolio Genius System comes equipped with 155 currencies and 219 countries that are able to be assigned to a particular issue.

Another enhancement to the application involves pricing foreign debt. TPG’s Data Link Interface has been expanded to accommodate pricing foreign issues in local currency. For example, a Canadian client with a portfolio largely composed of Canadian debt is interested in returning prices denominated in the Canadian Dollar (as opposed to prices denominated in US Dollars). The system now accommodates this.

In addition to pricing securities in local currency, the Data Link Interface can be used to build and maintain CUSIPs within a portfolio. The investment portfolio application has the functionality to build common CUSIPs, but also issues that use a BB Number as an idenifier (for example EH8080101- a Municipal issue by Warsaw, Poland). Once the security is built and active in PG, users can periodically maintain the issue using the Data Link Interface as an automated tool for updating ratings (Moody’s, S&P, Fitch, Composite and DBRS), accrual rates, indices, factors, sinking fund information, etc.

The following exercise involved entering and balancing bonds from Switzerland, Norway, France, England, Germany, Spain, Singapore, Hong Kong, China, Thailand, New Zealand, and Australia. The basic bonds used for this exercise are government issues, but we also used corporate bonds from England, Thailand, France, and Singapore (for less vanilla issues). The balancing routine includes matching the purchase tickets and end-of-month interest balances in Portfolio Genius to a reliable third-party source (in this instance, Bloomberg Data License).

CUSIP Master

Thailand Government Corporate Bond

Position Level Information

Singapore Government Corporate Bond

Position Level Information

Foreign Corporation Bond

Position Level Book Value and Accrued Interest Information

FASB’s updates to regulatory reporting guidelines for OTTI securities have been in effect for almost a full year now. Does your bank investment accounting software offer the reports you need to be in compliance?

Portfolio Genius does.

Get the information you need to remain in compliance with Portfolio Genius’s robust reporting engine. If you’re not already a client, give us a call and find out why many prominent US banks have made the switch to TPG Software.

TPG Software offers institutional investment accounting software solutions, derivative accounting and valuation software and reconciliation and collateral management software. Visit our TPG home page for more information and product demos.

The SEC recently proposed “significant” changes to the rules and regulations that deal with Asset-Backed Securities (ABS)—most notably regarding the offering process, disclosure and reporting. Changes like these reinforce the need for a modern institutional investment accounting software system like Portfolio Genius.

Regulators are seeking a measure that would require issuers of securitized loans to keep 5% of the credit risk in exchange for safe-harbor protection. Additionally, ABS sellers would be required to disclose the ABS structure, the credit and payment performance of its loans, and reveal compensation paid for the securitization.

The SEC also recommends that asset-level information be provided in accordance to these proposed standards in a tagged data format using XML (eXtensible Markup Language). Additionally, the SEC is proposing to make the filing of contractual cash flow provisions as a downloadable computer file mandatory, accompanying the filing of the prospectus.

The full proposed rule can be read here.

TPG’s investment banking software solutions give you the tools you need to better track these ABS positions, storing the deal structures in an electronic format which can be extracted in accordance with these new regulations.

And our flexible user-defined field functionality allows you to customize the information you track—impairments, changes to impairment balances, recovery methods, etc.

Thank you for visiting the NEW tpgsoftware.com!  You’ll notice that we reorganized the information on our website to make it more informative and user friendly.  You’ll also notice that the site now contains information on the newest addition to our product offering, Safekeeping Genius.  The Safekeeping Genius system enables you to provide reconciliation and collateral management services to your safekeeping portfolio.

Unfortunately, we were unable to migrate log in IDs and passwords from our old site to this one.  So in order to access our white papers or product demos (coming soon), you will need to re-register with this site. We apologize for any inconvenience this may cause.

We’ve also added easily accessible links to this blog, our Facebook page, our YouTube channel, and our CEO/CFO’s LinkedIn page. These are all ways we plan on improving our communication with our current and prospective clients.

So please, take a look around and let us know what you think!