Baxter Brothers LLC 2011 Year End Loan Servicing Cost Survey

3 July 2012

Baxter Brothers LLC is pleased to announce the conclusion and publication of their 2011 Year End Loan Servicing Cost Survey (the "Survey"). The Survey was launched on December 18, 2011 and closed to submissions on January 27, 2012. Its objective was to obtain data from institutions across the loan world with a view to establishing benchmarks for costs associated with servicing syndicated loans per asset class and type of loan, adjusted for the size of portfolio and the role of the participant. Senior loan professionals, globally, were invited to participate. Not every question in the survey was mandatory.

With the highest response rate yet on any Loan Cost Survey, over 172 respondents took part, representing Buy, Sell, Mixed and Trading loan platforms. Hedge funds, small banks, multi-national and global institutions participated from all over the world. Each response contributed to the value of this survey.

The Survey was truly a global one in that responses were recorded from institutions based in Africa, Eastern Europe, Persian Gulf, Latin America, Asia-Pacific, as well as Western Europe and North America.

Until this Survey, there was no objective global measure of a firm’s cost structure. We have established key efficiency ratios by Asset Category (Leverage, Middle Market, etc.), Platform size (under 10 billion, etc) and Industry role (Buy Side, Sell Side), all of which will augment the business intelligence of your firm. The full report details the responses in the following categories each of which can be segmented per the above:

  • Common Loan Focused Activities (Front, Middle, Back Office and Outsourced)
  • Service Center Structure
  • Geographic location of Service Centers
  • Total number of Facilities Serviced Segmented by Loan Role (Agent, Participant, etc)
  • Breakdown of Facility Type (Borrowing Base, Revolvers, Term)
  • Average Salaries for Service Center’s FTE’s and Managerial Staff
  • Breakdown of Loan type Serviced by Service Center’s FTE’s and Managers
  • Other Asset Classes the Firm is engaged in
  • Concentration of the Firm’s Total Activity Broken out per Asset Class
  • Software most used for Loan Accounting

Generally, this Survey is of benefit to anyone working in the loan market. Whether your firm is involved in LEVERAGED, MIDDLE MARKET, INVESTMENT GRADE, PROJECT FINANCE, OIL AND GAS, AGRICULTURAL, ASSET BASED, ALTERNATIVE ENERGY, COMMERCIAL REAL ESTATE, EMERGING MARKETS or any combination of these, with the data contained in the Full Report – and you also get the ACTUAL DATA (only available to subscribers), you’ll see what your peers are spending and how they’re allocating their costs.

The Full Report is available to subscribers of Baxter Brothers LLC’s Loan Cost Data. This report contains the actual entries made by all respondents – the complete data set (minus any confidential information) for your firm’s further analysis. You get the questions and the responses for a modest annual fee.

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