Growth in Number of Investors in the Syndicated Loan Market Increases Demand for Portfolio Valuation Services

Category:

Monday, November 1, 2004 11:25 am EST

Dateline:

NEW YORK
"Mark-it Partners is intensely focused on building the market data feeds that allow our clients to manage their asset portfolios with an independent, precise and accurate valuation perspective"

A dramatic increase in the number of investors in the global syndicated loan market has fueled demand for a more comprehensive, independent loan valuation service. The combination of a 21% surge in the number of loan investors during the first three quarters of 2004, and the adoption of the Mark-it Partners Loans Valuation Service - formerly LoanX - by seasoned loan portfolio managers has led to rapid growth of the Mark-it Partners Loan Valuation Service. Mark-it Partners has been engaged as the primary source of loan mark-to-market services by over 20 additional firms during the third quarter alone, including The Carlyle Group, Highland Capital Management, L.P. and Prudential Insurance.

Mark-it Partners' institutional investor client base now exceeds 250 firms, over 120 of which license the Mark-it Partners Loan Valuation Service. With loan investors adopting the Mark-it Partners Loan Valuation Service over the past two years, in excess of 50% of the 100 most active institutional investors in the loan market now turn to Mark-it Partners for independent valuation of their loan portfolios.

"Our investors rely upon the expertise of The Carlyle Group in the processes of asset selection, portfolio structuring, and active risk management. We are pleased to be working with Mark-it Partners as a robust and independent source of valuation data in the fixed income market," says Mike Zupon, Managing Director and Head of Fixed Income Asset Management at The Carlyle Group.

"As one of the market's largest managers, Highland Capital manages loans in a wide range of fund structures for a global, diversified investor base. Mark-it Partners provides us with accurate, timely, and comprehensive pricing information that is key to our investors' confidence in loans as an attractive investment," says Mark Okada, Chief Investment Officer at Highland Capital Management.

"Mark-it Partners is intensely focused on building the market data feeds that allow our clients to manage their asset portfolios with an independent, precise and accurate valuation perspective," said Michael Rushmore, Executive Vice President at Mark-it Partners. "We are privileged to be working with a rapidly expanding community of leading sell side and buy side firms that share our commitment to excellence in loan valuation services."

The subscriber base for the Mark-it Partners Loan Valuation Service includes an increasingly diverse set of loan market participants, including commercial and investment banks, hedge funds, mutual funds, insurance companies, independent asset management companies, distressed investment funds, rating agencies, auditing firms, independent credit research organizations and advisory firms. Subscribers to the Mark-it Partners Loan Valuation Service obtain the most comprehensive view of the fully-integrated global syndicated loan secondary market ever created for investors, providing data and analytics on nearly 4,000 syndicated loans and 8,000 related bonds to all users on a daily basis.

Features most heavily used by institutional investors include:

  • Independent Mark-to-Market Valuations: Mark-it Partners is an independent data company that delivers nearly 4,000 independent loan prices and supporting perspective on a daily basis through a rich web-based interface. Subscribers to the valuation service see the value of loans owned, as well as the current value of every other loan being valued by the dealer community in North America and Europe. This holistic market view - without portfolio or geographic limitations - leverages the superior dealer perspective on every traded loan to create a single window on the entire asset class.
  • Market Filtering and Valuation Analytics: The Mark-it Partners Loans service delivers loan prices with superior context. The service provides daily on-line portfolio valuation and portfolio analytics such as volatility and risk analysis, a combination of filtering options including industry, risk rating, geographic region and underwriter. These filters enable price analysis across deals, and unique asset sourcing capabilities.
  • Model Loan Valuation: The Mark-it Partners Loans pricing algorithm creates a model price for loans not traded in the secondary market. The algorithm matches static loan characteristics to the valuation levels of traded loans, enabling independent valuation of illiquid facilities.
  • Capital Structure Evaluation: The Mark-it Partners Loans service delivers a seamless view of the indicative valuation levels of the nearly 4,000 loans, nearly 8,000 bonds and the related equity for specific issuers. Subscribers are able to compare the trading level histories and patterns across asset classes, identifying relative value trends and opportunities.
  • Back-Office Integration: The Mark-it Partners Loans technology has been designed and is managed with the objective of facilitating the seamless integration of loan valuation data with other vendor applications such as JP Morgan Trustee Services, and Wall Street Office, or internally developed management systems. Mark-it Partners Loans clients use this API tool to integrate the loan valuation data with back-office systems.
  • Automatic Portfolio Building and Management: Mark-it Partners Loans provides electronic portfolio building functionality that allows trustee reports to be converted to on-line portfolios that are priced and updated with new static data regularly. What required many hours of valuable time in the past, now takes just seconds to execute using the proprietary portfolio building tools.

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Contact:

Markit
Caroline Lumley
Director, Corporate Communications, Markit
Tel: +44 20 7260 2047