NorthPoint Solutions

Challenges

A $7 Billion CLO manager was capturing US/Euro multi-currency broadly syndicated loan trades in Excel spreadsheets. These spreadsheets served as the platform for exposure/risk reporting, generating trade tickets and reconciliation with Trustees, compliance reporting, and printed copies were physically signed off as part of the approval process. All together, this was a manual and error prone process that often required significant oversight and could not provide a consolidated view of positions that was reliable enough for risk reporting. Additionally, the Fund was in the process of becoming a registered investment advisor which would require it to have a full audit trail of all transactions.

Solution

NorthPoint implemented a Loan Specific OMS that included a Securities Master and Trade/Position Blotters which gave the Portfolio Manager a realtime view of his positions, electronic sign-off on transactions and a full audit trail. The system also provided straight through processing of trades into the accounting system and generated all relevant documents such as Trade Tickets, Funding Memos, and Trustee reports.

Benefits

• A real-time view of holdings and exposure.
• A fully audible log of trade activity.
• Elimination of duplicate data entry.
• A 50% reduction in the end of day processing time.