DealVector, providers of the first secure electronic communication network for the fixed income and structured credit space, today announced the launch of InvestorLink to streamline communication in the structured credit markets.
Created primarily for Issuers, Collateral Managers and Trustees, InvestorLink opens a direct communication channel between deal administrators and holders. Benefits include:
- Accelerated execution of amendments, waivers, consents and other voting events
- Improved liquidity and transparency
- Differentiation for Collateral Managers as an investor-friendly provider of administrative services
Events that require note holder approval are often time-sensitive and financially significant. Yet the current notification pathway has numerous obstacles that interfere with successful communication. Notifications pass through multiple intermediaries, and offer Objecting Beneficial Owners no means of responding except via phone, fax, email or other method that requires them to reveal their identities—something many are reluctant to do. This lowers response rates to important deal actions.
InvestorLink allows deal administrators, investors, lawyers and other affiliated parties to create asset-specific micro-sites to communicate with holders about an upcoming event. An InvestorLink micro-site allows the author to describe the event and actions required, make pertinent documents available for download, and create a customized the URL for distribution through DTCC, Euroclear, Clearstream or other channels. Visitors to the InvestorLink site can correspond with the site’s author through an identity-protected communication channel. By allowing the holder to respond anonymously at first, InvestorLink removes an important barrier to communication and facilitates a two-way dialogue.
Issuers, Collateral Managers and Trustees can also print InvestorLink URLs on monthly trustee reports, inviting holders to “follow” their deals and thereby receive direct notification on future events. Investors who follow a deal can communicate with each other as well as with the deal administrators, making it easier to source or sell their paper and enhancing deal liquidity.
“Communication among deal parties continues to be one of the biggest issues inhibiting operational efficiency in the structured credit and fixed income markets today,” said Mike Manning, co-founder and CEO of DealVector. “InvestorLink provides note holders an identity-protected communication channel so they may communicate anonymously with their counterparties, thereby providing more data about their investments, automating communications and improving trustee performance.”