US Bank pivots to middle office outsourcing for CLOs

Source: US Bank

U.S. Bank Global Corporate Trust Services has enhanced its online platform, Pivot, expanding access to collateralized loan obligation (CLO) managers that outsource middle office services.

Pivot allows these clients to gain cost efficiencies and improve the process of managing their loan portfolios.

U.S. Bank Global Corporate Trust Services invested in this technology to support its commitment to middle office services. The business line’s middle office group currently has $30 billion in assets under administration, and expects to grow its presence as a result of this upgrade. The platform will help clients manage their portfolios online by sharing key deal data and test results, critical alerts, file sharing, self-service reporting, and data comparison tools that streamline the reconciliation process.

“Middle office services are independent of trustee services, so all deal teams, technology, system access, and portfolio administration processes are segregated,” said Herb Schofield, senior vice president for U.S. Bank Global Corporate Trust Services. “Our new platform eliminates a lot of back-and-forth over email, automating processes and sharing information online so a client can respond quickly to a dynamic market environment.”

U.S. Bank made a significant investment in bringing Pivot to the market late last year. The platform has contributed to continued growth for U.S. Bank in the corporate trustee space, leading the industry in market share on CLO issuances last year. According to annual league tables published by Asset-Backed Alert, the bank was trustee on 45 percent of CLO issuances in 2014, up from 32 percent in 2013, 26 percent in 2012 and just 8 percent in 2011.

“This upgrade continues our full court press in building out technology to enhance our clients’ experience,” Schofield said. For example, last month the bank incorporated a new Bloomberg investor reporting standard into Pivot, and future enhancements to the platform will be geared toward addressing trade processing inefficiencies in the market.
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