Real-Time Reporting Service Rolled Out
10 June 2013
Law Debenture’s new Dynamic Analytical Reporting Tool System (DARTS) went live with its first CLO manager in May. The real-time service leverages business intelligence to retrieve, report and analyse European ABS and CLO performance data.
With the rise of the CLO market, traditional investor reporting had become cumbersome, while collateral managers were unable to receive results of hypothetical test requests in an efficient manner. Law Debenture Agency Solutions (LDAS) identified two areas that needed to be improved: investors required a flexible and transparent reporting tool; and collateral managers required a tool to facilitate asset substitutions.
“DARTS enables collateral managers to run multiple trading scenarios within minutes, enabling them to execute time-critical trades, as well as test cure analyses, par coverage ratio analyses and so on. Typically, it could take hours, if not days, to process the results. With DARTS these results are available in minutes,” explains Neil Lewis, senior relationship manager at LDAS.
He continues: “In addition, investor compliance reports are now available in a more user-friendly format with the ability to generate trend and historical analysis, thus comparing previous reports. With these customised reporting tools available for investors, the deal manager’s reputation will also be enhanced, providing an obvious advantage when looking for new investments towards their future CLO issuances.”
Users of DARTS can drill down into and manipulate the data in order to run a variety of trading scenarios within minutes. Investor dashboards display all of the test results, as well as historical trends and accompanying graphics.
Developed in collaboration with existing clients, other functionality offered by DARTS includes: the ability to warehouse loan notices; the provision of ‘what-if’ scenarios around principal pay-downs and reference rate changes for loan facility transactions. Furthermore, at a time when investors are required under CRD IV to prove that they understand a securitisation, DARTS can provide analysis in support of this.
LDAS provides administrative and agency solutions for structured and non-structured transactions within the financial services industry. DARTS was designed to be used by collateral managers and investors in CLO transactions. It can equally be used by other associated parties and on securitised, leveraged or financial transactions, including by borrowers/lenders, auditors, rating agencies, arrangers and corporate service providers.