Corporation Services Co. entered the securitization services playing field last week, when it launched a new subsidiary, CSC Securitization Services. Richard Taiano is set to head the operations for the team.
Coming into what industry professionals regard as a niche market, Taiano said CSC plans to gain market share over its competitors by building an advanced, premier technological platform with other industry partners.
"If you don't have reasonable technology, it really doesn't build any efficiency that the clients like to see," said Taiano. "We look at that as the primary component of being successful right now. I think it will give us a competitive advantage."
With plans to become a full securitization servicing provider, the new group also plans to take advantage of existing corporate-related services that are already provided by its parent, Taiano added.
Services that the CSC securitization group will provide include special purpose entity/vehicle ownership and management; independent director; manager and special member services; securities intermediary services; accounting and treasury services; tax preparation and audit coordination; commercial paper and debt issuance/management; cash waterfall and treasury management; surveillance reporting; portfolio analytics; administrative agent and backup administrative agent services; investor report generation; and rating agency report generation.
"Since we are already a well established company with a lot of internal resources, we are going to leverage that," said Taiano. "We are going to try to use some of those resources and people which our competitors don't have and don't have access to," he said.
Currently, Taiano is working to develop a business plan with Vice President and General Council for CSC, George A. Massih III, who is located in Delaware. Taiano reports directly to the Board of Directors at CSC, who oversee the progress of the securitization services business.
Although Taiano is the sole person working on the team at the moment, Taiano said the company is planning to staff up quickly with professionals that have industry experience. CSC is also looking to hire several junior associates with conduit administration experience for the securitization services group. The company has plans to hire two people over the next month - one accounting specialist and a junior employee to take care of the daily administrative work, Taiano said.
"The idea is to grow the business as much as we can. Within the next two to three years we hope to be 10 to 15 people strong that will be dedicated to the business," he said.
Taiano joined CSC last week with the first mandate to develop the securitization services group. Formerly Taiano was director in the asset-backed finance group and head of the securitization administration at Scotia Capital reporting to Managing Director Alan Edwards. He spent five years at Scotia with six people reporting to him. Prior to Scotia, Taiano spent five years at LordSPV.
Headquartered in Wilmington, Del., CSC is a privately held company founded in 1899. It currently employs almost 1,000 people and offers law office, corporate compliance and governance and entity management services, among others.
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