U.S. Bank to offer CLO clients tailored portfolio optimization capabilities for more streamlined and effective trade structuring
February 28 2023 - 9:00AM
Business Wire
U.S. Bank announced today that it has added portfolio
optimization capabilities to its Pivot client platform, giving
collateralized loan obligation (CLO) clients comprehensive insights
for faster and more effective trading. Using a set of criteria
selected by the client, Pivot Portfolio Optimization sorts through
tens of thousands of potential portfolio combinations to identify a
combination of investments that best advance the client’s stated
objective – typically, maximizing the weighted average spread of
the CLO. Clients can include constraints not only from CLO
compliance tests, but also custom constraints calculated on
internal data that the client uses to make investment
decisions.
“CLO portfolio managers often lack tools to integrate their
research and optimize their portfolios,” said Joe Nardi, U.S. CLO
business head at U.S. Bank. “Pivot Portfolio Optimization will
provide them with a comprehensive view of their accounts and allow
them to quickly evaluate and identify trades that will satisfy a
given set of goals for their unique portfolio. Our offering is
highly customizable, and we’re able to include client portfolio
constraints and metrics. For example, if a client has their own
credit scoring, we can use that in conjunction with ratings from
the major rating agencies. The tool can even rank order suggested
trades by impact, so a portfolio manager can track a shorter list
of the most consequential trades. We designed the system for
investment action.”
John Stern, president, U.S. Bank Global Corporate Trust and
Custody, added, “U.S. Bank has a distinct advantage in this space
because of the strong relationships we have cultivated over the
years. Our CLO teams currently work with the vast majority of the
CLO market and have leveraged loan data covering 99 percent of the
market, giving clients the confidence to focus on managing their
CLO portfolios backed by the data and support of a trusted
partner.”
U.S. Bank focused research and development on two priorities:
calculation speed and seamless execution and currently has two
patents pending covering Pivot Portfolio Optimization capabilities
on these critical features.
U.S. Bank Global Corporate Trust and Custody, along with U.S.
Bank Global Fund Services and U.S. Bancorp Asset Management,
comprise the Investment Services division, which holds $9.8
trillion in assets under custody and administration as of Dec. 31,
2022. For more information, visit
usbank.com/investmentservices.
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $675
billion in assets as of Dec. 31, 2022, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. MUFG Union Bank,
consisting primarily of retail banking branches on the West Coast,
joined U.S. Bancorp in 2022. The company has been recognized for
its approach to digital innovation, social responsibility, and
customer service, including being named one of the 2022 World’s
Most Ethical Companies and Fortune’s most admired superregional
bank. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20230228005241/en/
Kimberly Mikrot, U.S. Bank Public Affairs & Communications
kimberly.mikrot@usbank.com | 612.206.2553
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