There are more than a few challenges involved in successfully completing a large, complex securitisation deal – especially on a tight timeframe. It takes the right resources, as well as a high degree of agility and teamwork on the part of the sponsor, funding party and their legal counsel – all of whom must rely on the corporate trustee and other counterparties throughout the process.
Whether you’re a law firm, finance party or a sponsor, understanding the traits of a reliable trustee will support the timely execution of a transaction.
At the top of the list of traits should be adequate resources and scale to handle large and complex transactions, according to Joshua Theodore, vice president of business development for U.S. Bank Global Corporate Trust. “This includes the right technology and an experienced team,” he says.
Responsive client service is also critical to getting deals done successfully and on time. This includes timely onboarding, a detailed understanding of investor reporting needs and fast document turnaround. “We have to be efficient with deal workstreams and be responsive,” says Theodore. “Trustees can do this by working cohesively with deal parties and sharing best practices from similar transactions.”
A trustee should offer efficient onboarding processes, including staying ahead of Know Your Customer (KYC) deadlines. “Transactions shouldn’t be delayed because KYC deadlines weren’t met,” says Theodore.
“If a deal is scheduled to close in two weeks, you need to know your trustee will finish KYC well before that deadline,” he adds. “Transactions can be fast-moving, so trustees should be flexible and responsive to turn comments on document review.”
