Some of the biggest banks on Wall Street are backing a new syndicated loan platform, called Versana, that is aiming to bring transparency, efficiency and velocity to the $5 trillion market.
Founding members JP Morgan, Bank of America, Citi and Credit Suisse say the platform should launch later this year, led by fixed income veteran Cynthia Sachs.
The syndicated loan market is expected to see significant growth, thanks to rising inflation. But, says Versana, the fragmented and inefficient nature of the current market ecosystem - settlement times average more than 20 days - often results in frustration among participants, significant additional costs and operational challenges.
The new venture aims to address this by digitally capturing agent banks' reference data directly from its source on a real-time basis. In addition to providing greater transparency into loan level details and lender portfolio positions, Versana will streamline workflows and lower costs, says a statement.
Says Sachs: "Versana is backed by some of the biggest players and is being built by industry veterans with decades of experience working in the loan ecosystem. We know first-hand the challenges that exist today and are passionate about fixing the market's inefficiencies and inherent risks, setting it up for accelerated growth for years to come."