Northern Trust Launches Implementation of Automated Solution for Syndicated Bank Loans

Clients to gain improved data integrity, increased processing speed and enhanced reporting

Northern Trust has implemented an automated solution to process global syndicated bank loan transactions, providing clients with improved data integrity, increased processing speed and enhanced reporting on these complex and unique debt instruments. Northern Trust's straight-through processing strategy is supported by Markit WSO Services from Markit, which facilitates trade capture, tracking and reporting of syndicated bank loans.

"Markit WSO is the gold standard for syndicated bank loan processing and is the only full outsourcing solution available in the bank loan market," said Art Jablonski, global head, alternative asset servicing at Northern Trust, in a press release. "Combined with our dedicated team specializing in syndicated bank loans, Markit WSO brings enhanced capabilities to our clients and reinforces our commitment to this important business," he said.

Markit WSO allows for posting principal, interest, or any fees associated with incoming payment wires at the loan level, even if held by multiple accounts having uneven denominations of a loan. Clients and investment managers receive automated reconciliation, documentation and loan maintenance for instruments such as term loans, revolvers, letters of credit, delayed draws and bridge loans. In addition, the incorporation of a more granular level of asset categorization enables more detailed and selective reporting to clients.

"Syndicated bank loans are key components in many portfolio investment strategies, offering a variety of potential benefits," said Judson Baker, corporate and institutional services alternative assets product manager at Northern Trust, in the release. "Our solution offers clients greater flexibility to invest in these instruments, by providing accurate trade capture and lifecycle management for global syndicated bank loan processing as part of a full solution that includes timely payments and customized reporting for reconciliations or general reporting requirements," he said.