Client services support to a CLO corporate trust

  • USD2tn+

    in AuM; the world’s largest custodian bank, based in the US

  • 2,000

    backlog cleared for cash reconciliation breaks

  • 40%

    operational cost savings

  • Client sponsor: US-based custodian bank and securities services company
  • Client need: Client was looking for a trusted associate to help the Corporate Trust Client Services team perform CLO activities
  • Deployed a team of 13 CLO specialists to support the client’s Corporate Trust Loan Operations team in the following areas:
    • Cash reconciliation, trade reconciliation and daily cashflow analysis for deals assigned; liaising with Cash team and Asset Admin team
    • Preparing monthly and weekly reports to help Client Service Manager identify/address discrepancies
    • Reviewing and validating coverage tests, collateral quality test and concentration limitations test with client data to check whether deals are compiled with indenture language
    • Working on waterfalls by validating the accrual date, payment date, LIBOR rate, expense cap language and fee basis amount, and reviewing wire instruction
    • Tracking loans and bond trades, checking portfolio information and accuracy
    • Performing aggregate collateral balance (ACB) and aggregate principal balance (APB) for different CLOs
    • Processing internal transfers, FX and testing hypothetical trade scenarios
    • Trade bookings and settlement for CLO and non-CLO deals in client’s system
    • New deal setup functions and redemption processing for different deals
    • Global Funds Control (GFC) and Short-Term Investment Fund (STIF) payment processing and managing the fund balance
    • Preparing daily checklists, creating trade and research tickets to update the client’s systems
  • Third-party tools
    • WSO
    • Solvas
    • Nexen
    • S&P
    • Markit
    • Moody’s Rating
    • bloomberg


  • Provided real-time support to the client
  • Cleared backlog of 2k cash reconciliation breaks for multiple funds
  • Added bandwidth to the client teams, providing operational support, reducing cost by 40%
  • Gave the client a time-zone advantage
Thank you for sharing your details

Your file will start downloading automatically

If it does not download within 1 minute,

Share this on