Syndicated Loan Performance Data Enhnace Markit's Solution for CLOs

London and New York - 10 June 2013

Markit, a leading, global financial information services company, today announced that it is adding new loan performance data and analytics to its set of services that streamline the construction and management of collateralised loan obligations (CLOs).

Markit’s extensive end-to-end CLO solution helps managers optimise investment performance and minimise operational costs. The services include loan pricing, performance data and managed services for portfolio administration and trade settlement. Approximately 70% of CLO assets issued in 2012 are managed using services provided by Markit.

Markit’s new Loan Performance Database calculates current and historical performance and risk factors for syndicated loans, including return, yield and duration. It provides analytics that help portfolio managers systematically identify assets that are suitable for their portfolios and a new tool to monitor how the market and specific assets are performing. For performance calculations, the database draws on Markit’s industry-leading loan pricing and loan transaction and reference datasets.

Joe Widner, managing director and global head of loan portfolio management and processing at Markit, said: “Markit has been serving the unique needs of CLO managers for over 15 years and we strive to develop cutting-edge solutions that simplify the issuance and management of CLOs. With our new Loan Performance Database, CLO managers have a powerful tool to help them screen assets and monitor yields and other performance metrics for loans.”

Markit’s end-to-end CLO solution includes services for front, middle and back office functions:

Front Office:

  • Loan performance database – a set of data analytics, asset screening tools and calculators for returns, yields and durations that assist in portfolio construction, loan market surveillance and benchmarking
  • Loan pricing – daily pricing, liquidity scores, liquidity metrics and pricing history for 10+ years for 6,000+ loans
  • Easy trade entry and integration, leveraging a security master database of 12,000+ loans

Middle Office:

  • Loan trade settlement services – fully outsourced trade settlement (average T+12)
  • Compliance – customised reporting module based on client’s CLO indenture to test and monitor
  • Ratings – Moody’s and S&P ratings streamed into portfolios for real-time monitoring

Back Office:

  • Asset servicing – processing of agent notices, portfolio activity, calculation of delayed compensation and economic benefit
  • Reconciliation – daily position and cash reconciliation with break clearing service
  • Reporting – 150+ standard portfolio management reports (positions, concentrations, ratings, trade blotters, etc.)

Onboarding can be completed in as little as one day and each client is assigned an account manager as the single point of contact for the services.

More than 235 CLO managers and other types of investors use Markit’s software and outsourced services for managing loan assets.

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