Credit and Distressed Debt Solution

Par and Distressed Debt has become a key holding in many Hedge Fund and Asset Managers portfolios. Unfortunately, traditional Order Management and Accounting Systems aren’t capable of handling this asset class well. These complex instruments are difficult to administer, price, and manage cash-flows around. Operations and Investment Management professionals are left with few choices; buy an additional accounting system, pay an administrator, or manage the assets separately in spreadsheets. While these solutions may work on a small scale, they begin to break down as a portfolio grows. Consolidating positions, creating PnL and exposure reports, and managing cash-flows becomes a manual process that is resource intensive, slow, and error prone. All of which introduces an unacceptable level of cost and risk.

The Solution

NorhtPoint provides a comprehensive Credit Management Framework that covers the entire life-cycle of credit based instruments including Bank Debt, Distressed Debt, CDOs/CLOs and Private Loans. It is comprised of several components that provide functionality for Loan Origination and Deal Tracking, Loan Servicing, Asset Administration/Loan Accounting, Trade Capture, Pre-Trade Analytics/Compliance, CDO Analytics, Credit Surveillance, and Portfolio Management. Any or all of these components can be implemented and integrated with existing legacy systems.

Features

  • Sell Side
  • Loan Origination and Deal Management.
  • Deal Workflow.
  • Deal Document Management.
  • Loan Servicing
  • Interest Accruals/Fee Tracking.
  • Invoicing.
  • Cash Management.
  • Correspondence Management.
  • Asset Management and Agent Functionality
  • Track and process draws, payments, commitment reductions, refinancing, etc.
  • Track rate changes, contract rollovers, splits, combines, etc.
  • Track defaults, violation of covenants, etc.
  • Loan Accounting
  • Interest Accruals as line items for the GL.
  • Fees.
  • Realized/Unrealized Gains.
  • Cash Reconciliation.
  • Internal/External Fund Allocations.
  • Reporting
  • By Deal Amount.
  • By Participant.
  • By Analyst.
  • By Borrower.
  • Personalized Ad-hoc Reports.
  • Buy Side
  • Trade Entry
  • Enter Executed or Hypothetical trades.
  • Rapid Entry of New Issuer/Security.
  • Automatic Allocation to Funds.
  • Support for Block Trades.
  • Pre-Trade Analytics and Compliance Testing
  • Run daily and ad-hoc tests against Holdings and Hypothetical trades.
  • Easy to configure test rules/triggers such as Diversity, Concentration, Over Collateralization, Eligibility, etc.
  • Dynamically run Compliance tests against CDO/CLO rules of indenture.
  • Portfolio Management
  • Overnight pricing, rating, and calculations.
  • View by Portfolio Holdings; Aggregated by Issuer/Facility.
  • Track and process draws, payments, commitment reductions, refinancing, etc.
  • Track rate changes, contract rollovers, splits, combines, etc.
  • Track defaults, violation of covenants, etc.
  • CDO Analytics
  • Integration with Intex Feeds/APIs.
  • Cash-flow Analysis.
  • Default Correlations.
  • Credit Surveillance Data Warehouse
  • Loan, Pool and Deal Level Data.
  • Aggregation across various metrics (i.e., loan type, size, LTV, geography, etc.).
  • Ad-hoc analysis and drill down capability.
  • Relative and Absolute analysis.
  • Accounting
  • Fund Allocations.
  • Interest accrual based on allocated funds.
  • Deal/Facility level fees.
  • Cash reconciliation.
  • Export ledger entries to GL system.
  • Reporting
  • Canned Reports.
  • Personalized Ad-hoc reports.
  • Exports to Excel/PDF.