Global multi-asset fintech platform provider enhances CLO analytics and compliance capabilities

Client Profile

A leading financial technology provider offering various distinct software products for banks, pension funds, and investment firms.

Business Situation

This financial technology provider was experiencing increased demand from current and prospective bank loan focused clients to provide an enhanced CLO (collateralized loan obligation) analytics and trade compliance engine with self-service options, configurability, and intuitive analytics capabilities. 

With the goal of building a scalable financial technology solution, the CLO analytics engine required development of new functionality within an existing portfolio management system including integration with other live streaming data sources and systems. The client was seeking to create a competitive, go-to-market CLO capability and present a viable competitive alternative.

Grandview's Role

Grandview collaborated with the client’s financial technology team to identify gaps and write business requirements for CLO analytics and compliance for their multi-asset class investment management clients. The product required high volume scalability and enhanced support for loans, loan contracts, capitalized interest, and the new secured overnight financing rate (SOFR). 

Grandview developed a CLO specific relational data model to support existing and new analytics functionality. The model helped guide the development of formulaic analytics that the client can now provide as an out-of-the-box feature. Grandview then collaborated with the client’s development team to both enhance and create new CLO compliance tools and capabilities.

Technology Consulting Results

  • Provided detailed business requirements and technical specifications to the  client’s development team for a phased-in approach to building a standard data model along with CLO-specific analytics and portfolio-specific settings.

  • Implemented a CLO test tool providing summaries and detailed support for each complex test such as the overcollateralization, interest coverage, Moody’s Diversity Score, S&P CDO Monitor, weighted average life, spread, and coupon tests. The tool also includes a flexible waterfall configuration option.
  • Detailed support for aggregate principal balance calculations, loan contract level cash projections per collection period, and amortization details for weighted average life.
  • Developed standardized CLO attributes and analytics via a centralized admin option that can be pushed out to new CLO clients with the click of a button.
  • Created a CLO data model with over 220 fields to support CLO-specific functions.
  • Added a new data glossary covering 380 user-defined fields with 20+ metadata tags across multiple entities.
  • Established clear field hierarchies to help monitor relationships and diagnose issues.
  • Assessed over 10 thousand compliance rules and tested more than 500 scenarios for a full trade life cycle.
  • Realization of platform-wide benefits from enhancements to bank loan capabilities.
  • Stress tested system performance with over 50 fully configured CLOs in multiple currencies.
  • Wrote, organized, prioritized, and completed over 400 development tickets in Jira and Azure Dev Ops.
  • The new CLO analytics tool will be marketed to both existing and new clients as an enhanced capability.