The Depository Trust & Clearing Corporation (DTCC) announced that more than 1,300 investment funds participating in the syndicated loan market and administered by more than 80 fund managers are now linked to its Loan/SERV Reconciliation Service.
DTCCs Loan/SERV Reconciliation Service, one of an evolving suite of services that helps automate and streamline the processing of syndicated commercial loans, enables agent banks and lenders in this case, funds to track, view and reconcile loan positions on a daily basis. In recent weeks, investment firms that have linked their funds to the Loan/SERV Reconciliation Service include PIMCO, Oak Hill Advisors, Highland Capital Management and KKR.
Along with its Reconciliation Service, DTCC introduced its Loan/SERV Messaging Service in 2008, which provides a safe and automated network for the transmission, receipt and online storage of industry-standard loan messages.
Leading global investment management firms realize they need to make sure their loan positions are on the same page as the agent banks to ensure the accurate and timely servicing of these loans, says Chris Childs, vice president, Global Loans Product Management, DTCC. Loan/SERV provides this data access in real time. By linking to Loan/SERV, these fund managers are introducing cost savings, boosting efficiencies and providing greater transparency in the syndicated loan market.
More and more investment firms realize the benefits that come with this automation, and its why weve seen such a dramatic jump in the number of funds linking to the Reconciliation Service. In the past month alone, more than 25 fund managers signed up for the service.
Our multi-currency DVP service, coupled with the Loan/SERV Reconciliation Service, will dramatically reduce risk and provide greater certainty in the syndicated loan market. DVP will provide certainty to loan traders that cash settles simultaneously with changes to asset ownership recorded by agent banks.
L.D.