Northern Trust has expanded its automated solutions for investment operations outsourcing clients to cover processing of syndicated bank loans, which are growing as an alternative asset allocation by specialist investment managers.
The implementation of Markit WSO Services on Northern Trust’s Investment Operations Outsourcing platform offers efficiency in trade capture and position reporting as well as cash management for investment managers that use syndicated bank loans in fixed income and hedging strategies.
Northern Trust Investment Operations Outsourcing provides middle- and back-office services such as trade services, performance measurement, client reporting, fund accounting and custody to investment managers worldwide.
"As clients increase their holdings of syndicated bank loans by 30 percent or more per year, our solution can enhance their ability to manage these complex, non-standard assets across multiple portfolios and accounts," says Paul Fahey, director of global product management and development for global fund services at Northern Trust. "Like our solutions for over-the-counter derivatives, hedge funds and private equity, this is an extension of Northern Trust’s scalable platform that allows investment managers to grow in markets or strategies where they have a competitive advantage."
Markit WSO Services enhances controls and efficiencies around the bank loan lifecycle, including trade capture, timely payments and reporting. The tool works across multiple accounts and a variety of instruments such as term loans, revolvers, letters of credit, delayed draws and bridge loans.
Northern Trust integrates the Markit tool with its operations and technology platform, which houses the supporting data and documentation required for all bank loans, and has a dedicated team for syndicated bank loan processing.
