Charles River Automates MBS Pools

Charles River Development assured fixed income managers they can automate and streamline the delivery of mortgage backed securities pools through a system that will allow investment managers to buy, sell, and monitor to be announced positions and transactions in real

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Charles River Development assured fixed income managers they can automate and streamline the delivery of mortgage-backed securities pools through a system that will allow investment managers to buy, sell, and monitor to-be-announced positions and transactions in real-time with the same application that they use to manage global equity, fixed income, foreign exchange, compliance, and settlements activities.

“Prior to adopting our TBA functionality, many of our fixed income clients used multiple applications and manual processes for the management of their TBA positions and transactions,” said Rick Enfield, director of fixed income product management at Charles River. He claims that “tasks such as determining portfolio exposure, ensuring compliance, creating turns and pair-offs, and managing pool receipt and delivery are significantly easier with our integrated approach to TBA processing.

According to the Fixed Income Clearing Corporation Web site, the electronic payment network reduces risk and streamlines operations by eliminating error-prone manual processing. Before system was in place, MBS workflows required recipients to be available for the successful delivery of pool information via fax or telephone. Manual processing errors, communications problems, and the inaccessibility of recipients often resulted in billions of dollars in failed MBS.

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