Citi launched a new service will allow structured finance investors to access the bank’s secure investor reporting website to view notices online in real-time.
Investors are increasingly challenged to efficiently monitor notices on numerous tranches of structured finance issues which can directly impact pricing and liquidity. Until now, investors have relied on indirect notification of actions via third parties.
Citi's real-time communication and notification service that enables structured finance issuers to communicate key actions directly to investors via the Bloomberg Professional service. For any investor that buys Citi bonds, there is the opportunity for them to opt in to being notified through the online platform.
Bloomberg alerts the investor and links the investor to the trustee website, to look for information regarding any amendment, waiver or consent on the bond. The service will allow investors to access Citi’s secure investor reporting website to view notices online in real-time.
Paul Burke, North America head of sales, agency and trust services at Citi, explained that the motivation to bring investors an electronic notification process came from one of the bank’s MBS clients.
“This is a parallel process to the normal process of investor notification,” said Burke. Notifications are still required to go through the Depository Trust Company – that process is still in place, but Burke said that this new electronic notification will enhance that process because it’s more immediate.