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.”
