HSBC is set to leverage the IHS Markit Wall Street Office (WSO) platform to provide private loan servicing services to clients of its securities services business.
This will enable the bank to provide a much broader, more efficient and highly automated service to investors in bilateral and private syndicated loans, such as pension funds and insurance companies, fund managers and sponsors.
According to HSBC, private debt investors, who are also increasingly debt originators, will also benefit from connectivity to HSBC’s global banking services through its loan agency product.
The announcement comes as HSBC’s Securities Services business focuses more on the private assets sector following the creation last June of a division dedicated to growing its client service in this area.
Investors are increasingly keen to invest in private assets to earn returns in an environment of low and falling global interest rates, HSBC explained.
IHS Markit will perform the loan administration and reconciliation process, which will integrate with HSBC’s fund accounting platform, giving clients a clear picture of activities such as when interest and principal are paid.
The service will provide clients with real-time access to loan portfolio reports to make informed investment decisions in the complex asset class.
Tony McDonnell, Global Head of Private Assets in HSBC’s Securities Services business, said: “Private debt has been an extremely important asset class for our client owners and asset managers.
“This new capability will allow us to provide the most efficient service across the post-trade value chain for investors and managers. The WSO solution has global capabilities but is also very strong in Asia, which is important to us as a bank building customer capabilities in the region,” McDonnell added.
Elsewhere, HSBC Securities Services recently announced that it was preparing to launch Data mesha new data platform that will allow customers to select specific business data.