Reinventing Deal Execution and Compliance

Bonds and structured notes

Overview

We have substantial experience automating programs for the issuance of bonds and structured notes. We have worked in English and German. The issuers we have worked with are based in various countries and typically have their debt securities listed in more than one jurisdiction. The programs we have automated were prepared for a diverse set of regulators, from the SEC to the FSA to the BaFin.

With our partner law firms, we are able to offer issuers a complete solution, consisting not just of a document automation solution but of related legal services as well. This is particularly useful in situations where a program envisages that a law firm deliver a legal opinion or disclosure letter for each takedown.

Our approach

To successfully automate a debt program, it is key to understand that "flow" products, of which a bank may issue several hundreds or even thousands a year, require a different approach from the more customized products that may be offered and sold to individual investors (e.g., in reverse inquiry transactions).

With flow products, the document templates tend to be more or less static. The key requirements here are (1) seamless integration with other IT systems to ensure that data can be fed from multiple sources, (2) flexible document delivery options and (3) speed. Speed is important both for the generation of documents and for implementing updates to the document templates when the base prospectus is amended or the details of a particular product change.

Bespoke products require a very different approach. Here the challenge lies in designing a flexible user interface that offers a menu of options which the user can choose from and combine in an arbitrary manner to arrive at the desired result. For example, a particular payout formula for the principal repayment at maturity may have to be combined with various interest payment options and a redemption or repayment feature. For maximum performance, the system should be configured to automatically include appropriate risk factors that go with the product.

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Case studies are available upon request.