Loan trade settlement software that names what holds every open trade, and who holds it
Every stalled trade shows who it is waiting on, with the chase already written.
See one case, screen by screen ↓Software that follows a secondary loan trade from confirmation to funding — allocations, the assignment and pricing letter, agent and borrower consent, KYC and tax forms, the funding memo. Loan Trade Settlement adds agents that read the settlement mailbox and the agents’ notices, name what holds each open trade and who holds it, and draft the chase.
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A par loan trade is not done when it is traded. It needs a confirmation and allocations, a signed assignment and pricing letter, the administrative agent’s consent after its own KYC and tax-form checks, often the borrower’s consent, and a funding memo — and every step waits on a different firm. Each hand-off is its own email thread, and the settlement platform shows the status the parties typed, not what is actually holding the trade.
So the settlement analyst starts the day in a shared mailbox, reading whole threads to learn who a trade is stuck on. Chases go to people who already sent the form to someone else. A borrower that never answers a consent request holds the trade for weeks, although the credit agreement may deem its consent after ten business days. From T+7, every late day is paid away as delayed compensation, and the head of operations pays it every month without a clear reason why.
Estimated split for a par trade that needs agent and borrower consent — by hand, against the market average near T+20, and with the solution, against its T+12 target.
Six agents read the mail, find each trade's blocker and draft the chase; the settlement analyst sends.
Ashgrove Bank sold $25,000,000 of the Corvane Packaging Term Loan B to Alderbrook CLO 2024-1 at 99.375 on Wed 9 Sep. It is Tue 13 Oct — T+23 — and Corvane has not answered the consent request. Here is what happens next, screen by screen, in the working solution.
Nina opens the pipeline: 42 open trades, $262.5M par, in six columns from Trade confirmed to Settled. Each column shows its median age and an aging bar; each trade shows its T+ age, the blocker in one line, a tag for who holds it — Us, Counterparty, Agent or Borrower — and its delayed comp per day. The rail adds it up: we pay $10,510 a day, we receive $3,512.
Who we are waiting on: Counterparty 22 · Agent 9 · Borrower 6 · Us 5.
37 emails in the settlement mailbox and 9 agent notices since 18:40 yesterday — 41 matched to 19 trades. The agents read the settlement platform status, the notices from Tidewater, Ridgeway and Bellhaven, and the transfer clause of each of the six trades waiting on borrower consent. Then the Corvane card at T+23 lifts out of its column: Corvane received the consent request on Wed 30 Sep, and under §10.06(b) it is deemed to consent 10 business days later unless it objects — end of Thu 15 Oct. There is no objection in Tidewater’s notices or the mail.
“Consent deemed given in 2 days — notify counterparty.” Delayed comp saved: $23,581.
The trade page lays every step on a T+ timeline: confirmed on the platform, assignment and pricing letter signed T+3, Tidewater’s transfer review, the expired W-8BEN-E that Alderbrook resent at T+13, and Corvane silent since the request. T+7, when delayed comp started, and today are marked; the deemed date and Fri 16 Oct settlement are drawn dashed, as projections.
Three quotes, each with its source: Tidewater’s notice that the request was delivered to Gil Marchetti, Treasurer, on Wed 30 Sep; the clause itself; and this morning’s Tidewater report — “Pending borrower consent.” No objection recorded. A ten-box clock shows business days 1–8 gone, with Columbus Day not counted.
Corvane can still object until close of business Thu 15 Oct; the reader checks Tidewater’s notices every 30 minutes until then.
Section 10.06 of the Corvane credit agreement, page 142 of 196, with the margin notes the agent wrote: why the borrower must consent at all (Alderbrook CLO 2024-1 is not a Lender, an Affiliate of a Lender or an Approved Fund), the $1,000,000 minimum, the four disqualified lenders on Schedule 10.06 — Alderbrook is not one — and the New York Business Day.
We owe Alderbrook $53,593 so far: interest on $25,000,000 at 7.37% (S+325), less carry on $24,843,750 at 4.31% — $2,144 a calendar day since Fri 18 Sep. Settle Fri 16 Oct on deemed consent and it stops at $60,024. Wait for a written reply — the median of the last 11 silent borrowers, Tue 27 Oct, T+33 — and it reaches $83,605.
“Settling on deemed consent saves $23,581 and 8 business days of risk on a $25M position.”
To Rhea Lindqvist at Alderbrook, copy Hana Sato at Tidewater: the trade, the date the request was delivered, the clause and the date the period ends. Hana is asked to confirm no objection and schedule the trade for the Fri 16 Oct close list; Rhea to have funds ready. Tidewater’s notice of 30 Sep and §10.06(b) are attached.
“Drafted by the chase writer from Tidewater’s notice of 30 Sep and §10.06(b) of the credit agreement. Edit anything before you send.”
Nina sends it. The callout changes to “Counterparty notified — settles Fri 16 Oct”, a planned card appears in Settled at T+26 on deemed consent, and delayed comp stops at $60,024 instead of $83,605.
Hollins Bay needs a current W-8BEN-E for Tidewater; Castlebar owes Bellhaven a beneficial-owner form; Tidewater has had Solway for 13 days against its median of 9; Bellhaven lost an assignment, resubmitted at T+18, and is asked to confirm receipt. Each draft says why now and carries its proof. Nina edits, sends or skips each one.
“You send every chase; a message to a borrower also needs the desk head.”
From April to September the desk’s median fell from T+14 to T+11, trades settled inside T+7 rose from 21% to 34%, and delayed comp paid fell from $412,300 to $297,400 a month. In September, KYC and tax forms caused 34% of the late days, unsigned or wrong documents 24% and borrower consent 21%.
“6 trades settled on deemed consent in September, a median of 7 business days sooner than a written reply.”
The same open trades, seen by the four people at Ashgrove Bank who carry them — what their week looked like, and what it looks like now.
Six agents read the mail, find each trade's blocker and draft the chase; the settlement analyst sends.
Reads confirmations, allocations and settlement-platform status and keeps one record per open trade — facility, side, counterparty, fund, par, price, trade date and the documents expected. Flags an allocation that comes back short.
Reads the shared settlement mailbox and the agents’ notices, ties each message to its trade and says what it means — a KYC or tax-form request, a consent, an objection, a memo, an out-of-office, or nothing.
Works out what holds each trade and who holds it, and reads the transfer section of the credit agreement for a way through — deemed consent, minimums, disqualified lenders, approved funds — counting business days from the notice.
Drafts one short chase per blocked trade to the person who can clear it, copying the agent where it helps, with the hold, the evidence and the ask with a date — and the message or clause that proves it attached.
From T+7, accrues the interest on par at the loan’s rate and the cost of carry on the purchase price, nets them by side, and marks trades where the buyer missed its own requirements.
Writes the weekly and monthly settlement performance report — median days to settle, share inside T+7, causes of late days and delayed comp paid and received.
Sends every chase and notice. The agents propose; a named person decides.
The settlement team can ask in plain words what a trade is waiting on, who to chase, or what delayed comp will cost — and every answer cites the message, notice or clause behind it.
Why is Corvane stuck at T+23?
It waits on the Borrower. Tidewater gave agent consent on 29 Sep after a KYC hold — Alderbrook’s W-8BEN-E had expired — and delivered the consent request to Corvane on Wed 30 Sep. Corvane has not replied. But §10.06(b) deems consent unless the Borrower objects within 10 business days of receiving it, and today’s Tidewater report shows no objection. Consent is deemed at close of business Thu 15 Oct, so the trade can settle Fri 16 Oct.
Which trades are waiting on Tidewater?
One waits on Tidewater itself — Solway at T+17, “in queue” twice with no consent after 13 days, against Tidewater’s median of 9. Two more are on KYC holds Tidewater raised: Fenwick (Hollins Bay’s W-8BEN-E) and Tamsin (Pinecrest’s W-9).
What will delayed comp cost us this month?
On sells past T+7 we owe $151,343 so far and add $10,510 every calendar day; on buys we are owed $36,292. Corvane is the biggest single line at $53,593. Settling it Fri 16 Oct on deemed consent instead of waiting for a written reply saves $23,581.
Chase every buyer missing a KYC or tax form
Five trades are on KYC or tax-form holds at the agent. Four are drafted and ready: Hollins Bay (W-8BEN-E, Fenwick), Castlebar (beneficial-owner form, Sablecrest), Pinecrest (W-9, Tamsin) and Tessellate (manager’s authority, Vireo) — each with the agent’s notice attached. The fifth is our own W-9 for Bellhaven, which Leo sent on T+9. Review them before they go — nothing is sent without you.
13 screens from the working solution, on its sample data. Pick one to see it large.
The delayed comp start, the carry rate, the chase rhythm and who approves what are settings the settlement team owns.
| Setting | Default | Choose from |
|---|---|---|
| Delayed comp starts | T+7 | Par and near-par trades, from the trade confirmation · distressed trades start at T+20 |
| Cost of carry rate | 4.31% (October) | Applied to the purchase price · October rate, adjusted with − and + |
| Business day calendar | New York | New York bank holidays |
| Read deemed-consent clauses | On | On · Off — count business days from the agent’s notice and show the date |
| First chase, then every | 2 business days, then every 2 | When a step has waited this long · while the hold stays |
| Messages to a borrower | Desk head approves | On · Off — approved by the desk head before they go |
| Delayed comp claims | Manager approves above $50,000 | Manager approves claims above this amount |
| Read every | 30 minutes | Mail, agents’ notices and the platform |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample trade data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (LSTA Settlement Data Study — ≈20-business-day ten-year average par settlement, April 2025; LSTA trade data studies — $821.4B of US secondary loans traded in 2024). People, banks, funds, borrowers and agents named on this page are fictional — characters and sample data in the working solution.
Software that follows a secondary loan trade from confirmation to funding — allocations, the assignment and pricing letter, agent and borrower consent, KYC and tax forms, the funding memo. Loan Trade Settlement adds agents that read the settlement mailbox and the agents’ notices, name what holds each open trade and who holds it, and draft the chase.
The mail and notice reader ties every email and agent notice to its trade and says what it means — a KYC hold, a wrong form, a consent, an objection. The blocker finder then names the hold and the party holding it, with the message, notice or clause quoted as proof. It reads the mail, notices and settlement platform every 30 minutes.
Only where the credit agreement says so. The blocker finder reads the transfer section, and where it deems consent after a period it counts business days from the agent’s notice on the New York calendar and gives the date. Without the clause and the notice date it never calls consent given.
From T+7 for par and near-par trades (T+20 for distressed), the interest on par at the loan’s rate less the cost of carry on the purchase price, netted by side — both what you owe on sells and what you are owed on buys. Every figure shows its working, and nothing is booked or paid from the ledger.
No. The chase writer drafts each chase to the person who can clear the hold, with the proof attached. The settlement analyst edits, sends or skips it; any message to a borrower also needs the desk head’s approval.
The settlement mailbox (read only), the settlement platform for trade status, documents and close lists, the administrative agents’ portals and daily transfer reports, your credit agreements, and trade confirmations and allocations.
Yes. When delayed comp starts, the cost of carry rate, the business-day calendar, whether deemed-consent clauses are read, when the first chase goes and how often after, who approves borrower messages, the claim threshold for the manager and how often it reads are all settings.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your settlement procedures, chase templates, credit agreements and a sample of open trades — and it goes live once every quality gate has passed. We will walk you through it on your own trades first.
Booking errors caught before the first bill goes out.
1-min demoLoan Document SearchAnswers in seconds, with the clause that proves them.
1-min demoLoan Document Exception TrackingExceptions cleared in days, not left open for months, each one read before it clears.
1-min demoWe’ll run Loan Trade Settlement on a sample of your own open trades and settlement mail.