Excellence in the Administration of Illiquid Assets

Excellence in the Administration of Illiquid Assets

February 2015

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Market and regulatory dynamics have encouraged dramatic change in investor and bank attitudes to illiquid instruments in recent years.

BNY Mellon's Magnus Wilson-Webb, Corporate Trust Strategy, and Arlene Allen, Head of Investment Managers Segment, Corporate Trust discuss Illiquid Asset administration and the services required.

Market and regulatory dynamics have encouraged dramatic change in investor and bank attitudes to illiquid instruments in recent years.

Illiquid Assets are those such as Syndicated and Leveraged Finance Loans, Infrastructure Debt, Real-estate Loans, and Direct Lending. Common amongst all these is that they are all cleared OTC, so are held outside of the clearing systems. The biggest challenge in administering these assets is in the dematerializing of the loan lifecycle to be more akin to the operation of the bond market, from both a settlement perspective and the day-to-day operation

We can facilitate the administration of your Illiquid Assets by providing:

  • A specialized, dedicated platform able to handle the complexities of these assets.
  • Staffing expertise – we have dedicated staff who understand these complex assets and can leverage extensive relationships with both managers and agent banks.
  • A comprehensive suite of first-class ‘End to End Loan Services’ which include Loan Closing, Loan Administration, Compliance Reporting, Fund Accounting and Loan Admin Agency Services.

We are a truly independent provider, solely focused on providing the skill and expertise necessary to deliver the best for our clients in the illiquid asset space.

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Another trend we're seeing is banks pulling back from lending as a result of regulatory and capital constraints. In fact, a recent survey of European corporates showed that they're getting around 40% of their lending needs from these alternative sources now.

Magnus Wilson-Webb, Managing Director, Strategy, BNY Mellon Corporate Trust