Northern trust extends outsourcing to syndicated loans

Source: Northern Trust

Northern Trust announced today it 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 utilize 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," said Paul Fahey, Director of Global Product Management and Development for Global Fund Services (GFS) 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 accurate trade capture, timely payments and comprehensive 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 global 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.

"The market continues to seek solutions for this asset class and Northern Trust offers a unique blend of expertise, market-leading tools and a global platform to promote automation while maintaining data integrity," said GFS Product Manager Jeff Potter. "We are now in the process of integrating this robust processing solution with Web Trade Services, our trade-matching solution, to advance our straight-through processing initiatives across traditional and alternative asset classes. This enhancement is further evidence of our ongoing commitment to delivering expanded asset processing support and reporting to our investment manager clients."

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