Wallstreet Suite Comprehensive Loan Management Fact Sheet

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Wallstreet Suite Comprehensive, cross-asset investment and debt management solutions for financial institutions and corporations

www.wallstreetsystems.com

FACT SHEET: COMPREHENSIVE LOAN MANAGEMENT

The Wallstreet Suite Commercial Lending Management (CLM) provides lenders with a fully integrated loan management solution that handles structured loan facilities and drawdowns from the creation of the contract, through the management of drawdowns and receivables to the full support of accounting. Business Challenges
For those lenders without a fully integrated solution to manage the loan lifecycle, it can be costly and time consuming to maintain control over loan events. This lack of integration can ultimately lead to a breakdown in communication between lenders and borrowers. The resulting disruption to the loan lifecycle leads to delayed client payments and an inability to monitor credit and debt limits. This in turn seriously impacts operational risk and costs. Companies then face the risk of failing to meet the requirements of auditors and compliance officers. Offering new products and sophisticated loan structures is a complex process for those lenders not using a single integrated loan management platform. Ultimately, relying on disjointed manual processes to manage the loan lifecycle has a significant impact on the lender’s operational costs and pushes loan rates up. Lenders also need to consider the entire risk for their total portfolio including the funding side and hedges used to manage the risk. Different types of risks need to be managed including interest rate risk, duration risk, FX risk and liquidity risk. It is therefore important to have all the positions in one system, the issued loans as well as the positions from the funding and hedging activities.

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Key Features

Workflow
The Wallstreet Suite Commercial Lending Management supports a wide range of instruments including: • • • • • • • fixed rate floating rate annuities guarantee backed loans collateralized loans revisable loans structured loans with complex interest structures and call and put options

CLM lets you define your own workflows using flexible rules. This allows you to define the required validation of entries through a chain of users according to the ‘four-eyes’ principle. CLM lets you set up multiple borrowers and lenders in a single facility and allows any number of parallel and sequential schedules, structuring of interest, redemption calculation and payments, and any combination of drawdown and payback currencies. You can define templates for facilities and drawdowns specifying conditions and key attributes - this automates the workflow and routine tasks. Furthermore, facility conditions are automatically verified at the time of drawdown. During the life of the facilities and drawdowns, a large variety of events are handled, including rate setting, prepayments, drawdown and facility amendments, payment allocation and debt supervision. Floating-rate loans have automatic rate setting through batch processing so no manual intervention is necessary. Payment reminders can be generated automatically before each payment date and can be distributed via email or fax. Importing a SWIFT payment advice is automatic and CLM helps you track, monitor and reconcile payments against loan receivables. A powerful automatic matching engine reconciles incoming payments with expected payments. You can automatically price loans with your own spread using valuation curves such as zero-coupon or customized. CLM’s integration with Wallstreet Suite accounting solution enables seamless accounting functionality for CLM’s lending operations, including accounting for drawdown, received payments, fees and costs, credit write-offs and provisions.

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CONTRACTS
Set up Amendements Contract Fee



DRAWDOWNS
Simulation Pricing Entries Drawdown Fees



LIFE-CYCLE EVENTS



RECEIVABLE MANAGEMENT
Automatic Import of SWIFT Messages



ACCOUNTING



Support Features
During the life of the facility and drawdowns, the communication between lenders and borrowers is provided by the Message Manager – an integrated document management system - which automatically generates notifications to the borrowers. You can configure any number of documents for creating facilities, drawdowns, payments, rate fixing and other events. The Message Manager uses MS Word™ to enable a flexible document layout and content definition. A set of configurable monitors ensure the real-time control of the loan processing: • Loan Credit Monitor lets you monitor the credit situation for a loan contract including open credit amount, used credit amount and available credit. • Debt Monitor lets you verify the amounts due from a borrower or for a contract. These amounts may be the result of the repayment of loans, or interest due on loans, or they may arise from payments of fees, commissions, etc. • Limit Monitor analyzes and monitors limits to credit exposure, settlement, market risk etc. for the loan portfolios or individual loan contracts. When a limit is hit you are automatically warned.

ADDED ADVANTAGE
Wallstreet Suite comes with the added advantage that it is completely integrated with debt management, cash and treasury management and risk management functionality all in one system. The funds you need to raise to be able to issue loans are managed in the same system. It supports a complete range of instruments for managing the issue of bonds, both plain vanilla and structured products and its advanced and flexible Instrument Editor lets you define even the most complex instruments. Wallstreet Suite fully supports all functions

W O RKFLO W S U P P ORT FEAT UR E S

Support of wide range of Events Indemnities Fees

Receivable Cashflows Contingent/ Commitment Reveived Payments Matched Receivable & Received Credit Warning/ Provision

Automatch of Expected vs. Received Payments Manual Matching Treatment of Over/ Underpayment

MESSAGE MANAGER Flexible Document Layout/ Content Definition using MS Word CREDIT MONITOR
Open Credit Used Credit Available Credit

Rulebased Document Generation on Transactions & Payments DEBT MONITOR
Expected Amount in Local/ Contract Currency Consolidated View for each Disbursal/Events

Automatic Preview & Transmission based on Rules LIMIT MONITOR
Real-time Credit Warning Used Credit Available Credit

necessary to administrate the issued debt such as confirmations, settlements and resets, as well as fully supporting accounting needs according to both international standards and local standards - in parallel. Wallstreet Suite has the complete cash management and treasury functionality necessary to administrate your liquidity and manage your risk. Advanced liquidity forecasting tools are automatically updated with the cash flows from each transaction in the system, as well as from those external cash flows. Wallstreet Suite also lets you optimally manage the daily liquidity so you get the most out of your working capital. Wallstreet Suite fully supports all FX and interest derivatives, even the most advanced, which means that in one system you can administrate the hedges you enter in order to manage the risk profile of your loans and debt portfolios without the need for a separate system to manage the derivatives. Wallstreet Suite fully supports all stages in the lifecycle of a derivative including advanced hedge accounting. Through the Hedge Manager dashboard, you can administrate the hedges for accounting purposes as well as administrating and documenting the hedging relationships. Wallstreet Suite supports several different types of effectiveness test methods and can automatically generate the correct accounting results. It automates the monthly hedge accounting process enabling you to be compliant with both IAS 39 and FAS 133. Wallstreet Suite comes with an advanced real-time risk monitoring facility. Treasury Monitor lets you calculate over 300 risk key figures including the value at risk in real-time – as market data changes or positions change, the key figures are updated. Through Treasury Monitor and reports you can view and control the risk profile of both the loans given as well as well as the debt issues and the hedging derivates. You can either choose to look at the risk individually or combined. Using simulations you can view the effect of possible changes in market data, and you can also enter fictitious transactions to see how best to hedge an open risk position.
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Business Challenge
Integration

Wallstreet Suite Solution

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CLM integrates the entire lifecycle of a loan covering, set-up facilities, disbursal, drawdown events and receivables, and provides complete accounting through Wallstreet Suite’s accounting solution. The complete life cycle can be monitored in CLM’s various monitors. CLM automates all recurring processes including payment reconciliation, fixing, accounting and document creation. Wallstreet Suite’s CLM’s sophisticated loan construction capabilities can handle almost any facility and loan definition, and its drawdown structuring contains any number of parallel or sequential schedules. This enables lenders to rapidly bring new products and loan structures to market. CLM offers real-time communication between lenders and borrowers, via its integrated document management system “Message Manager”, and ensures that contract conditions are adhered to in a timely manner. Wallstreet Suite offers a complete integrated system supporting funding and hedging operations as well as advanced liquidity forecasting capabilities for full control of all types of risk. You don’t need duplication of data and interfaces to other systems to manage the risk.

Automation

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New Products for Lenders

Lender/Borrower Communication

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Risk Management

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© 2007 Wall Street Systems Delaware, Inc. All rights reserved.

CONTACT US North America HQ +1 212 809 7200 Email [email protected] Europe HQ +44 (0) 20 3170 3000 Website www.wallstreetsystems.com Asia HQ +65 6232 2365

Wall Street Systems – Empowering Treasury, Trading and Settlement
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