Page 15 - MTIA Summer 2022 Market Brief
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Embracing flexibility Staying Ahead of Tight Cycles
and maintaining open It is also important to consider reporting data holistically. Each trustee processes
communication will enable data from agents, clients, and rating agencies. CLO managers often have
numerous service providers, including trustees and data/reporting providers. A
the CLO market to navigate
lot of activity is compressed into the typical eight-day reporting window, such as
future changes while achieving
reconciliation of global and portfolio information, including cash, par, and portfolio
sustained success. It also characteristics, as well as full reconciliation of various compliance).
sets a high bar for what
In the U.S., Wilmington Trust’s approach has been to stay on top of this activity
CLO managers should expect
throughout the month rather than only at month end or quarter end. Consistent
providers to offer. data communication creates the opportunity to reconcile more frequently, which
has positive downstream impacts on report turnaround times. It allows time for
follow-up communication and engagement between CLO managers, agents, and
third-party service providers.
CLO managers require adaptable service
providers to meet complex reporting needs on three fronts:
• Collaborative efforts between CLO managers, administrative
providers, and reporting providers are necessary to deliver
accurate reports in various templates.
• Automation and data reconciliation by trustees can streamline
processes.
• Regular engagement and proactive communication before and
during the reporting cycle enhance efficiency.
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