Customers have the flexibility to manage our solutions in-house or to outsource portfolio management functions partially or entirely to us.

Transcription

1 Loans solutions

2 Markit delivers an integrated and scalable suite of solutions that deliver increased transparency and efficiency to loan market participants and support the front, middle and back office. Through transparent loan referential, cash flow and pricing information, we support idea generation, research and trading. Our global settlement platform helps streamline trade processing, while back office solutions enable loan portfolio management. Customers have the flexibility to manage our solutions in-house or to outsource portfolio management functions partially or entirely to us.

3 From data and trade processing to documentation and portfolio management, we offer integrated products and services to support the entire loan trade lifecycle. RESEARCH AND INVESTMENT ANALYSIS TRADING SETTLEMENT ASSET SERVICING AND RECONCILIATION PORTFOLIO MANAGEMENT, REPORTING AND ACCOUNTING Loan indices Markit Counterparty Manager Markit Notice Manager Markit Pricing Data Markit Reference Data Markit WSO Software: Compliance, Interfaces Markit Counterparty Manager Markit WSO Software: Administrator, Agent, Interfaces, Reporting Markit Loan Settlement Markit WSO Software: Administrator, Agent, Interfaces, Reporting Markit Counterparty Manager Markit Notice Manager Markit Pricing Data Markit Reference Data Markit WSO Software: Administrator, Agent, Interfaces, Reporting Markit Notice Manager Markit Pricing Data Markit Reference Data Loan indices Markit WSO Software: Accounting, Administrator, Agent, Compliance, Interfaces, Reporting \ 3

4 INFORMATION Loan information services deliver valuable insight into the loan market and enable customers to stay up to date with global market activity. Customers leverage our loan pricing data and indices to drive informed trade and risk management decisions, while our reference data supports efficient transaction processing. Together, our data fuels the end-to-end management of loan portfolios. \ 4

5 Markit Pricing Data We provide independent bid-offer pricing and liquidity information for more than 6,400 leveraged loan facilities globally. We source prices sourced from market participants as well as our parsing technology. Liquidity information for the leveraged loan market, including metrics such as the number of dealers quoting along with the size and average size quoted, offer additional insight. Dedicated loan pricing specialists are available to provide support to global clients. In addition, over ten years of price history enables customers to generate and backtest trade ideas. Markit Reference Data Our leveraged loan reference data includes granular covenant details and realtime corporate action data. With coverage of more than 9,000 public and private loans in a centralised repository, we help reduce the time and resources required for data collection and management and support research, market surveillance, compliance and security master control. Loan indices Using our loan datasets, we developed, calculate and deliver independent and objective loan indices to support trading, product structuring and benchmarking. The Markit iboxx USD Leveraged Loan index comprises approximately 100 of the most liquid, tradable leveraged loans. Constituents are derived using selection criteria such as loan type, minimum size, liquidity, credit ratings, initial spreads and minimum time to maturity. Sub-indices are available based on realized gains, unrealized gains and interest and fees. Markit LCDX consists of 100 reference entities, referencing first lien leverage loan CDS. It enables market participants to easily gain exposure to a diversified portfolio of loans and to hedge a portfolio s credit risk. Markit LevX covers the European leveraged loan CDS market. It provides exposure to a diversified loans portfolio and enables market participants to hedge cash loan positions. Data is sourced directly from credit agreements, agent notices and public filings and is validated and actively monitored for updates through the life of the loan. By converting data into easily consumable data fields, we enable direct integration into existing workflows and automated processing. \ 5

6 PROCESSING Market participants are seeking improved efficiency around loans settlement as manual processes require more resources and create a greater risk of delays and errors. By centralising the trade processing workflow, customers can streamline operations, yielding faster settlement times and reducing settlement risk. Through an advanced trade settlement platform, we automate processes and enable more effective sharing and execution of settlement documents. Integration with our loan portfolio management software as well as third party platforms allows for seamless delivery of realtime updates. \ 6

7 Loan settlement process 4 A&A Documents 1 Buyside trade Sellside trade 2 Message director 3 ClearPar Document / data review / pricing calculations (ClearPar) Loan Settlement Manager Transfer certificate Funding memo Wire transfer \ DTCC cash on transfer 3 Automated data checks / exceptions for each traded Trade processing Known party Pricing calculations Agent checks Inventory Realtime agent data 5 Message director Buyside Sellside Agents Custodians 1 Buyside and sellside institutions provide trade details to Markit. 2 Message director routes trades automatically to relevant platform based on agent/deal/trade counterparty attributes. 3 Markit Clear trade settlement leverages increased automation. 4 Both platforms provide A&As, transfer certificates and funding memos with transfer and settlement details. Markit Loan Settlement We offer an electronic trade processing platform for settling trades in the US and European syndicated loans markets. Market participants can use the platform to generate and manage documents for settlement of LMA and LSTA par and distressed trades. Access to realtime agent bank data from trading counterparties and greater integration of client system helps reduce settlement delays. By automating loan trade affirmation, confirmation and matching, we facilitate straight through processing of loan trades. With the platform s pop-up functionality, buyers and sellers can manage assignment agreements (A&A) that govern ownership of loan assets, now required for more than 30% of loan trades. Through delivery of trade data and documents via system-to-system messages and documents over secure channels, we help custodians and trustees reduce settlement risk and increase operational efficiency. \ 7

8 SOLUTIONS We enable customers to mitigate uncertainty in cash flows and support timely interest, principal and fee payments. Products and services for managing counterparties, portfolios and documentation help customers reduce counterparty, trading and settlement risk. Together with our outsourced loan services, we support the end-to-end management of loan portfolio to help improve operational efficiency, increase scalability and reduce expenses. \ 8

9 Markit Counterparty Manager We provide a secure environment for managing and sharing trade counterparty documentation. Users can upload, disseminate and maintain over 200 document types across 45 categories. Document views can be tracked, and automated alerts and notifications enable the monitoring of settlement status. We enable customers to make regulatory representations and validate compliance with evolving business conduct rules and KYC/AML obligations. Connectivity to our trade settlement platform helps streamline settlement processes. Markit WSO Software Over a single platform, we enable reporting, CLO compliance, integration, performance analysis and agent syndication across the loan trade lifecycle. With a wide range of solutions designed to make the management of bank loan portfolios and structured deals more efficient and accurate, customers are able to manage a large number of assets and portfolios. We provide built-in connectivity to Markit Clear and third party trade settlement platforms, to deliver an end-to-end solution to customers. Markit Notice Manager Through our online document management service, we process, categorise and store agent notices related to bank loan holdings. Loan managers can effectively and efficiently handle inbound agent notices. We help customers improve day-to-day operations and control over research and audit needs using historical information. The flexibility of our service enables firms to handle changing data dissemination and retrieval requirements. We support FpML, faxes and s, including attachments in Excel, Word, PDF and other formats. Markit WSO Services Our suite of loan portfolio management products are available to customers on an outsourced basis, to help streamline middle and back office operations. Experienced industry experts leverage the strength of our portfolio management products to deliver high quality services to loan market participants. Managed service offerings include asset servicing, cash reconciliation, P&L reporting that includes a website and feeds to managers, loan settlement and agent asset administration. \ 9

10 360,000 global assignments processed annually 1m+ loan trades settled 6,400+ syndicated loan facilities priced daily $1.2tn+ in leveraged loans tracked 6.5m+ notices categorised annually These numbers are changing as you read this. \ 10

11 About Markit More Information Markit is a leading global provider of financial information services. We provide products that enhance transparency, reduce risk and improve operational efficiency. Our customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies. Founded in 2003, we employ over 4,000 people in 11 countries. Markit shares are listed on Nasdaq under the symbol MRKT. For more information, please see markit.com For more information on the products and services from Markit, please contact us at sales@markit.com or call one of our regional offices: London New York Amsterdam Boulder Dallas Frankfurt Hong Kong Tokyo Toronto Singapore Sydney \ 11

12 mines data, pools intelligence, surfaces information, enables transparency, builds platforms, provides access, extends networks, & transforms business. Markit makes no warranty, expressed or implied, as to accuracy, completeness or timeliness, or as to the results to be obtained by recipients of the products and services described herein, and shall not in any way be liable for any inaccuracies, errors or omissions herein. Copyright 2015, Markit Group Limited. All rights reserved. Any unauthorised use, disclosure, reproduction or dissemination, in full or in part, in any media or by any means, without the prior written permission of Markit Group Limited is strictly prohibited.