Loan trade settlement, explained.

Settling a syndicated loan trade: why a sale agreed in a minute takes weeks to finish

Where settlement sits in a syndicated loan's life

1. The loan is madeAn arranger syndicates a term loan to banks, CLOs and funds; one bank is named to run it.
2. A holder sellsA bank desk sells $25 million of it to a CLO at 99.375. Price agreed, trade binding, T+0.
3. The trade settlesConfirmation, allocation, assignment, identity and tax checks, borrower consent, funding memo, wire. Target T+7; the example took 26 business days.
4. The new lender is recordedThe bank running the loan enters the buyer in its register; interest now goes to the buyer.
5. It trades againThe buyer votes on amendments, receives payments and may sell, which starts the cycle over.

Step 3 is the subject of this guide. The people, companies and figures in this example are fictional.

Who sets the clock, who can stall it, and who pays for the wait

Settlement vocabulary used throughout this guide

Fourteen terms are defined in the summary page.

Par, near par or distressed, and assignment or participation: what a buyer of a syndicated loan receives

In shortTwo choices made at the trade decide how it settles. The documentation, par or distressed, sets the clock, the paperwork and how interest is split. The form, assignment or participation, decides whether the buyer becomes a lender with a vote or only receives the cash flows through the seller.

A syndicated term loan has one credit agreement and many lenders. The agreement names one bank to keep the register of lenders, collect payments and process transfers; its formal title appears in every assignment clause, and this guide calls it the administrator.

In the Shared National Credit program's 2025 review, US banks held 45% of the $6.9 trillion of commitments; the rest sat with foreign banks and nonbank lenders such as CLOs and funds. Nearly half of all commitments were leveraged.1

Par or distressed: chosen at the trade

The LSTA publishes two families of trade documents. Par (also called par/near par) is used for performing loans that trade close to face value.

Distressed is used when the borrower is in trouble or the loan trades at a deep discount; it adds a purchase and sale agreement with wider representations about the seller's title and the history of the position. The two sides choose the documents when they agree the trade, and the choice sets the settlement clock: the date from which delayed compensation is counted is "generally T+7 for par/near par trades and T+20 for distressed trades."3

Distressed trades also offer three ways to treat interest that accrues while the trade is open: settled without accrued interest, paid on the settlement date, or "trades flat", which "is typically only utilized by market participants when the loan is non-performing" and no interest is being paid.3

Assignment or participation: lender of record, or a share of the cash

Because syndicated loans are contracts between lenders and a borrower, they settle outside the clearing houses that move stocks and bonds. In Kirschner v. JPMorgan Chase Bank, the Second Circuit in August 2023 upheld the dismissal of state securities claims because the plaintiff had not plausibly shown the notes in the syndicated term loan at issue to be securities; the court added that a different transaction could be judged differently.9

Electronic settlement platforms (ClearPar and Trade Settlement Inc. are the two named in the 2016 rule change) carry the documents and status between the parties; the transfer still happens in the administrator's register.2

Confirmation, standard terms, assignment, administrative questionnaire, tax forms and funding memo: the paperwork of one trade

In shortFive documents move a par trade. The confirmation and its standard terms bind the two traders; the assignment and the buyer's questionnaire and tax forms go to the administrator; the funding memo states the money. A distressed trade adds a sixth, the purchase and sale agreement. Each document has a different author and a different signer, which is why a trade touches four firms.

Tax forms expire on a fixed date

The administrator will not record a lender it cannot pay. A foreign buyer's Form W-8BEN-E "will remain valid … for a period starting on the date the form is signed and ending on the last day of the third succeeding calendar year, unless a change in circumstances makes any information on the form incorrect."10 A form signed in any month of 2022 lapsed on December 31, 2025.

A CLO manager running dozens of vehicles therefore has a predictable wave of expiring forms every January, and a trade that reaches the administrator with an expired form stops until a new one arrives.

From the 2016 reform to the 2026 late payment fee: the LSTA terms and credit agreement clauses that set settlement rules

In shortSettlement runs on contract. The LSTA's standard terms set the clocks and the money; the credit agreement sets who may buy and who must consent; regulators touch settlement only indirectly, through rules for the funds that hold loans. The terms changed four times in ten years: requirement-based delayed compensation in 2016, cleaner conventions in 2017, a cost of carry based on SOFR (the overnight US dollar rate the New York Fed publishes) in 2021, and a fee for late payment of the price in 2026.

Why the 2016 reform mattered

Before September 2016, delayed compensation accrued to a buyer from T+7 "under most circumstances regardless of whether a loan trade has actually closed." Critics said that guarantee removed the buyer's reason to hurry, and let dealers in the middle wait for the end buyer at no cost.

The LSTA replaced it with a requirements-based standard "in the expectation that it will induce parties to reduce settlement times."2 The same alert reported the starting point: in the second quarter of 2016, "only 23 percent of par trades in the U.S. loan market settled within seven business days."2

Why the 2026 fee exists

The newest change targets the last step. Lawyers summarizing the proposal wrote that payors were increasingly missing the payment deadline, usually by "only one or two days," and that settlement risks and costs "have risen to previously unseen levels."13 The published version lets the payee charge the loan's all-in rate on a performing loan, or the cost of carry rate on a non-performing, distressed, payoff or proceeds trade, for the late days, invoiced within 30 calendar days.14 It changes nothing about consents or the administrator's queue.

T+1, T+5, T+7 and T+20: the business-day deadlines inside a par trade and a distressed trade

In short"T+" counts business days after the trade date. On a par trade, trade details go to the platform by T+1, signed documents are due by T+5, delayed compensation starts at T+7, and from T+20 either side can buy in or sell out against a party that will not perform. A distressed trade's compensation clock starts at T+20. Holidays move every date.

What counts as a business day

The trade terms' clocks count business days, and a credit agreement usually defines a Business Day as one on which banks in New York are open (the example's agreement does, on the screen in Part B).

In 2026 the Federal Reserve observes Labor Day on Monday, September 7, Columbus Day on Monday, October 12, Veterans Day on Wednesday, November 11, and Thanksgiving on Thursday, November 26.17 A trade struck on Wednesday, October 7, 2026 reaches T+7 on Monday, October 19, one day later than the weekday count suggests, and every later date moves with it.

The two clocks use different units. Deadlines are counted in business days; delayed compensation, once it starts, accrues for every calendar day, because the loan earns interest over the weekend.

Borrower and agency bank consent: who can refuse a buyer, when silence counts as yes, and how to count the days

In shortMost credit agreements need the administrator's consent to every new lender and the borrower's consent unless the buyer is already a lender, an affiliate of one or an approved fund, or a default is continuing. Borrower consent is usually "not to be unreasonably withheld" and is often deemed given after a set number of business days of silence. Reading the clause and counting the days is where most of the weeks are won or lost.

What a typical assignment clause asks for

When the borrower says no

Consent "is provided to the vast majority of proposed assignments," a 2023 analysis by Crowell & Moring found, but "a substantial number of assignments have failed to garner approval because a borrower—or, by proxy, the borrower's private equity sponsor—has withheld consent to all or certain classes of prospective lenders." Borrowers preparing an amendment or a restructuring prefer buyers they expect to vote with them; sponsor-owned borrowers often reject other sponsors' funds.7

Courts have not yet drawn the line between a reasonable and an unreasonable refusal for syndicated loans; the authors point to case law that consent can be refused only for "a legitimate business reason" exercised in good faith, and that a refused buyer may lack standing to sue, since it is not a party to the agreement.7 A trade on LSTA documents that cannot be assigned then settles by participation.

Counting a deemed consent window

A deemed consent proviso turns silence into consent. One published sample reads: the borrower "shall be deemed to have given its consent five Business Days after the date notice thereof has been delivered" unless it rejects the assignment first.8 Other agreements use ten days or more, and some have none. Three facts decide the date: the length in the agreement, the day the notice was delivered (usually by the administrator), and the agreement's Business Day definition.

Two cautions keep the count honest. Silence counts only where the clause says so: an agreement without the proviso needs a written yes. And the notice date has to be proven, which in practice means the administrator's own record of delivery, and the administrator's confirmation that no objection arrived, before the parties schedule settlement.

How delayed compensation is calculated: the buyer's interest on the traded amount, the seller's carry on the price, and who forfeits it

In shortFor each calendar day a par trade runs past T+7, the buyer is credited with the interest the loan earns on the traded amount and the seller keeps a carrying charge on the purchase price at average SOFR plus 0.11448%. The net usually runs from seller to buyer. A buyer that missed its own deadlines gets nothing, distressed trades use different conventions, and the price itself must now be paid on time.

What the buyer is credited and what the seller keeps

Delayed compensation "is meant to put the parties to a loan trade in the same position they would have been in had the settlement date not been delayed by entitling the buyer to receive the contractual interest accruing under the assigned loan during the period of delay net of a fixed amount that the seller is entitled to retain."2

In plain terms: until settlement, the seller is still the lender of record, so it still receives the loan's interest, and the buyer still holds the cash it will pay. Delayed compensation evens that out in two legs.

The first leg credits the buyer with the interest on the traded amount at the loan's own rate. The second leg lets the seller keep a charge, called carry, on the purchase price it has not yet received, at the cost of carry rate. The first leg minus the second is the day's delayed compensation, usually paid by the seller.

The par terms call the net figure the net credited amount (Sections 6.A and 6.B); Alston & Bird note that a seller paid late could already reclaim it for the delay period, a remedy sellers have rarely used.14 The examples here use a 360-day year; use your facility's own basis.

Where the carry rate comes from

For trades from December 1, 2021, the cost of carry rate is the average of daily simple SOFR from two business days before the delay period starts to two business days before the delayed settlement date (that last day excluded), plus a spread adjustment of 11.448 basis points.4 The spread is the Federal Reserve's tenor adjustment for one-month LIBOR, 0.11448%, written into Regulation ZZ.18

SOFR is the overnight rate the New York Fed publishes "each business day … at approximately 8:00 a.m. ET"; it ran between 3.62% and 3.95% from September 1 to October 29, 2026, so the carry rate on a trade open through that period was roughly 3.7% to 4.1%.19

The rate is final only two business days before settlement, when the averaging span closes. A claim worked out earlier is an estimate.

An illustrative trade, at four prices

Take $10,000,000 of a term loan paying SOFR plus 3.25%, with SOFR at 3.85% (an illustrative level inside the autumn 2026 range). Here is one late day at a price of 100, worked line by line.

At par, SOFR drops out. The buyer is credited SOFR + 3.25% and the seller keeps SOFR + 0.11448% on the same $10 million, so the net is 3.25% − 0.11448% = 3.13552% a year, and $10,000,000 × 3.13552% ÷ 360 is the same $870.98 a day. Below par the second leg is charged on a smaller sum, so more of the interest reaches the buyer. At 95 the price is $9,500,000, carry is $1,046.18 a day, and the buyer receives $926.

The example's sale, day by day

The example uses its own sample rates: the loan pays 7.37% (SOFR plus 3.25% on the period's base) and the desk applies a fixed 4.31% carry rate. The example counts every calendar day from T+7, Friday, September 18, up to the day before settlement.

Who loses the right to compensation

• A buyer that misses T+5. Unsigned confirmation or assignment, or no election that it can settle from T+7 on a platform, means no delayed compensation.2
• A seller that misses T+1. If the seller was responsible for submitting trade details and did not, delayed compensation "will not apply to the transaction."2
• Never because of a third party. Delayed compensation "will continue to apply even where necessary consents and approvals to the transfer have not been obtained" from the borrower, the administrator or anyone else.2 The seller bears the cost of a silent borrower.
• Distressed trades. The net credited amount is a par/near par remedy and does not apply to distressed trades; on distressed trades interest is handled by the settled-without-accrued-interest, paid-on-settlement-date or flat conventions instead.14,3
• New CLOs. A buyer that tells the seller before T+7 that it is a new CLO issuer may set a blackout during which the transfer is not made effective.2

A desk is on both sides of the market, so the same formula pays it on late purchases and costs it on late sales. Each claim belongs to one trade and one counterparty; two desks that trade often may settle a month's claims as one payment, but a dispute is always resolved trade by trade, on start date, rate, carry and day count.

How long US par loan trades take to settle: what the published numbers show from 2016 to 2023

In shortThe LSTA measures settlement times every quarter, but publishes them to members. The figures in the public record say the same thing from 2016 to 2023: roughly one par trade in four or five settles inside T+7, the median ran from about 12 days around 2016 to T+15 in July 2021, the average ran well above it (T+23 that month), and a long tail runs past T+20. Your own desk's median is the number to measure.

The SEC's 2022 liquidity proposal gave the most detailed public snapshot. Around 2016, "the median settlement time for a loan sale was about 12 days." By July 2021, "the average time to settle a bank loan par trade in the secondary market increased to a then seven-year high of T+23, and the median was at T+15." Just 20% settled inside the LSTA guideline that month, and trades settling later than T+20 had risen ten points to a 39% share, "nearly double that of the T+7 distribution."5

What the published settlement times tell a desk

• Average above median means a tail. Most trades are a little late and a few are very late; the few carry most of the delayed compensation.
• Stress can shorten settlement. The LSTA told the SEC that settlement times fell when loan funds faced heavy outflows in August 2011, and the SEC understood the same of March 2020.5
• Some firms do better than the market. One middle-office provider reports average par settlement of T+16 for its buy-side clients and T+23 for sell-side clients, and says that for many firms "the average par trade settlement time remains upwards of 20 days."20
• Long tails are normal. An administrator's quantitative team wrote in 2022 that par LSTA loans typically close in under 25 business days and that 60 to 90 days "are not rare."21
• Europe works on the same problem. The Loan Market Association reported that 2024 settlement times fell 10% on average and 11% at the median against 2023, against a goal of 25%.22

Signatures, tax forms, agency queues and silent borrowers: the usual causes of a missed T+7, and who can clear each

In shortDelays come from every firm in the chain. The two trading desks cause the early ones (allocations, confirmations, signatures); the administrator's queue and tax-form checks cause the middle ones; the borrower's consent, amendment holds and late wires cause the last ones. A desk can clear its own causes in a day, chase the counterparty's, and only read the contract and count days for the borrower's.

Three patterns stand out in the sources. Settlement slows as month-end and especially quarter-end approach, Mondays settle least, and loans that trade rarely settle more slowly than active ones.21 Delays also compound: a trade waiting on a signature at T+4 reaches the administrator after its quarter-end pause, and a consent request sent at T+15 has a deemed-consent window that ends after T+20.

When a loan trade stalls or fails: participations, buy-ins, late money and funds that need cash

In shortFew loan trades fail outright; they drag, or end in a weaker form. A refused consent turns an assignment into a participation; a non-performing counterparty can be bought in or sold out from T+20; a slow wire now costs a late payment fee. The costs land as delayed compensation, market risk on an open position, funding drag for loan funds, and staff time.

What a long settlement risks

Market risk. The price is fixed at the trade date and paid at settlement, so "the market price of the loan may move materially against one or the other of the parties" in between, and both risks "are magnified the longer it takes to settle."2

Liquidity for funds. Open-end funds held about $204 billion of bank loans at the end of 2021, about 15% of the market. Loan funds lost about 13% of assets in March 2020, more than any other fund type; some used bank lines of credit to pay redemptions while sales settled, and borrowing "imposes costs that can dilute the value of the fund for remaining investors."5 The SEC noted that loan funds "experience specific trading costs related to bridging the settlement gap."5

Delayed compensation. No public figure exists for what the market pays in delayed compensation. On one desk it is the sum of each late trade's daily rate, the bars in section 07, times its calendar days late.

Positions that never close. A participation leaves the seller in the lender group as a pass-through for the life of the loan, with voting requests to forward and payments to pass on.

$971 billion traded in 2025: record secondary loan volume, and more trades through the same agency banks

In shortUS secondary loan trading reached a record $971 billion in 2025, up 18% on 2024, and a quarterly high of $288 billion in the first quarter of 2026, taking the trailing twelve months above $1 trillion for the first time. Volume fell 18% in the second quarter and 4% in the third. Every trade is a settlement to work, through the same agency banks and the same borrowers.

The LSTA's public summaries give the shape. 2023 was "an off-year as volumes fell 13% to a six-year low of $715 billion"; 2024 rose 15% to $821.4 billion, "just $3 billion short of 2022's record $824 billion"; 2025 reached "$971 billion, up 18%."24,25 The first quarter of 2026 brought "a quarterly high of $288 billion" and twelve-month volume "surpassing $1 trillion for the first time"; the second quarter fell 18% "as volatility subsided"; the third fell 4%.25,26,27

What drives the work, besides volume

• Leverage. Nearly half of all Shared National Credit commitments in the 2025 review were leveraged, and leveraged loans made up 81% of the non-pass ones.1 Weaker credits mean more amendments, more holds and more distressed documentation.
• More kinds of buyer. US banks hold under half of the large syndicated commitments.1 Every new fund is a new questionnaire, a new tax form and, for many agreements, a borrower consent.
• Borrowers choosing their lenders. Consent refusals rose with financial stress in 2022–23.7
• Funds' liquidity. The SEC's 2016 rule made settlement time a fund compliance question; its 2022 proposal to tighten it was not adopted.11,12

The LSTA's monthly and quarterly studies carry the detail behind these totals (by month, par and distressed, settlement times) for members.23

Platforms, middle offices and tools that read the mail: what each automates in loan settlement, and how the April 2026 bank guidance applies

In shortMost settlement software moves documents and status between the parties. Newer tools read the mail, the notices and the credit agreement, work out what holds each trade and draft the chase. For a bank desk, the April 2026 model risk guidance, the third-party guidance and the bank's own controls apply; for any desk, people should keep every message to a borrower, every delayed compensation claim and every settlement date.

What each layer of tooling does

Model risk, third-party and AI guidance for a bank desk

• Model risk. On April 17, 2026, the Federal Reserve (SR 26-2), the OCC (Bulletin 2026-13) and the FDIC (FIL-15-2026) replaced SR 11-7 with revised guidance. Simple arithmetic and fixed rules, such as a business-day count or the delayed compensation formula, fall outside its definition of a model, and it leaves generative AI and AI that acts on its own out of scope; banks govern those tools under their broader risk management.28
• Third parties. A bank that buys software or a settlement service remains responsible for it under the 2023 interagency guidance on third-party relationships; revisions were proposed on September 15, 2026.29
• Voluntary frameworks. NIST's AI Risk Management Framework asks users to map, measure and manage the risks of an AI system, and to keep humans able to oversee it.30

What software cannot speed up, and what stays with people

Software cannot make a borrower answer or an administrator process faster. It can make sure every request goes out on the first day it could, that every reply is read the morning it arrives, and that the days are counted from the right notice under the right definition. Silence should never count as consent without the clause and the proven notice date; a claim should never be raised without its working; and a borrower should hear from a person the bank has approved to write to it.

A day on a loan settlement desk: trade closers, buyers' operations, the agency bank's transfer team and the borrower's treasurer

In shortA settlement analyst or trade closer owns each trade after the trader books it and chases five other parties through a shared mailbox and a platform. Most elapsed days are spent waiting in another firm's queue. Teams work in house with a platform and spreadsheets, outsource to a middle-office provider, or add software that reads the traffic for them.

Five parties every settlement depends on

How one par trade moves from firm to firm

Who held the example trade for each of its 26 business days

Only four of the 26 days belonged to the two desks that agreed the trade. That is typical of the published delay points: the parties to the trade control the first week, and the firms outside it control the rest.2

Spreadsheet desks, middle-office services and reading tools

The Corvane sale on day 23: from a pipeline card marked "borrower" to a notice that sets Friday's settlement

In shortThis is the example from the top of the page, inside the product. At 8:02 a.m. the agents read 46 overnight messages and notices, and the Corvane trade lifts out of the borrower consent column with a way through: consent is deemed given in two business days. Nina Callery, the settlement analyst, checks the evidence, opens the clause, and sends the drafted notice to the buyer and the administrator. The trade is set to settle on Friday, October 16.

1

Every open trade, aged and named

The pipeline holds all 42 open par trades, $262.5 million of them, in six columns from trade confirmed to settled. Each column shows its count, its median age and an aging bar; each card shows the trade's T+ age, side, size, counterparty, the blocker in one line with a tag for who holds it (us, counterparty, agent or borrower), the delayed compensation per day and its owner.

After the 8:02 a.m. reading, the Corvane card at T+23 lifts out of the borrower consent column: "Consent deemed given in 2 days — notify counterparty", with $23,581 of delayed compensation saved.

2

Where the 23 days went

Nina opens trade 4417. The timeline places every message and platform event on the T+ scale: confirmed at T+0, assignment and pricing letter signed at T+3, submitted to Brackwell Agency Services at T+4, a KYC hold from T+9 to T+13 while the buyer replaced its expired W-8BEN-E, agent consent at T+14, and the borrower silent since the request.

The dashed bars are the projection: deemed consent at the end of Thursday, October 15, the funding memo, settlement on Friday, October 16.

3

The evidence, and the money

"What is holding it" quotes three pieces of evidence, each numbered to its source: Brackwell's notice that the consent request reached Corvane's treasurer on Wednesday, September 30; the deemed consent proviso in §10.06(b)(i)(A) on page 142; and Brackwell's 7:58 a.m. transfer report, "No objection recorded." A ten-box clock shows business days 1 to 8 gone, Columbus Day skipped.

Beside it, the delayed compensation panel works out $53,593 owed so far, $2,144 a day, and the two futures: $60,024 settling on deemed consent, $83,605 waiting for a written reply.

4

The clause, read and marked

"Open §10.06" shows the transfer section of Corvane's credit agreement with the margin notes the blocker finder wrote: why the borrower must consent at all (Alderbrook CLO 2024-1 is not a lender, an affiliate of one or an approved fund), the $1,000,000 minimum met, the disqualified lender schedule checked, and the Business Day definition that excludes New York bank holidays.

The agreement is fictional. Real agreements vary in the length of the window, and some have none.8

5

A notice drafted with its proof

"Notify counterparty" opens the chase writer's draft to Rhea Lindqvist at Alderbrook, copying Hana Sato at Brackwell: the notice date, the section, the ten business days, the end of Thursday, October 15, a request to Brackwell to confirm no objection and put the trade on Friday's close list, and a reminder that delayed compensation continues from September 18 under the confirmation.

Nina edits nothing and sends it. The message goes to the buyer, so it needs no desk head approval; that step applies only to messages to a borrower.

6

Set to settle Friday

The card turns to "Alderbrook and Brackwell told", a planned card appears in the settled column for Friday, October 16, and the callout records the send time. Delayed compensation stops at $60,024; waiting for a reply would have cost $83,605.

If Corvane objects before the window closes, the trade goes back to borrower consent and the desk head decides the next message to the borrower.

The $23,581 is the fictional example's figure. The solution's design targets are a named blocker on every open trade at every 30-minute reading, and a median of T+12, to be measured on your own book.

The reading log, the inbox, nine drafted chases, delayed compensation both ways, scorecards and the monthly report

In shortOne trade is the story. These screens show the rest of the desk's morning: the reading step by step, every overnight message tied to its trade, the chases drafted to seven firms, delayed compensation owed and receivable by who is holding each trade, how long each agency bank and counterparty takes, the month's performance, and the settings that encode the desk's rules.

Select any screen to open it larger. The inbox crop stops above a sample notice whose tax form expiry date does not follow the IRS rule (a W-8BEN-E runs to December 31 of the third year after signing).10

The desk's six months, from the report screen

Who sends, who approves, and what the six agents prepare for them

In shortEach agent has one job and lines it does not cross. None of them sends a message, changes a trade's economics, books delayed compensation, or treats silence as consent without the clause and the notice date. The settlement analyst sends every chase and sets settlement dates; the desk head approves anything to a borrower; the head of operations approves claims over $50,000.

What each agent prepares

Where a person must act before anything leaves the desk

Every read, draft, send and approval is kept on the audit trail with the evidence behind it, so a disputed claim or a borrower's challenge can be answered from the record.

Ellisford's team and its counterparts in the sample data

What the desk connects and what it gets back: the mailbox, agency bank notices and credit agreements, read into cited blockers, chases and claims

In shortIt reads what a desk already receives: the platform, the shared mailbox, the agency banks' portals and the credit agreements. It leaves behind a pipeline with a cited blocker on every trade, chases ready to send, delayed compensation worked out both ways, scorecards and a monthly report. The platform and the trading systems stay where they are.

Eight systems to line up before you start

For each, check whether it offers an API, a file feed or only screens, and who owns it.

Alongside your platform, middle office and controls

How each finding is held to its evidence

Ellisford's 42 open trades on October 13: who they were waiting on, and what the late ones cost each day

In shortAcross the sample desk's book, 26 of 42 trades were past T+7. The desk paid $10,510 a day on 16 late sales and received $3,512 a day on 10 late purchases. Of the $151,343 it owed so far, $91,576 sat on trades waiting on a borrower. Those figures come from the screens and show what a desk can see when every trade names its holder.

What a selling desk pays for every day past T+7, and the costs that sit outside the claim

In shortStart from your own book. The market publishes how late trades run, but no one publishes what desks pay in delayed compensation or spend chasing. The formula in section 07 turns your late sales into dollars a day; your mailbox and your claims file give you the rest.

Where your desk's own figures sit, and how to pull them in a week

What late settlement costs that never shows on a funding memo

The return on faster settlement, worked from your late sales, position size and chasing hours

In shortPut in your own numbers. The calculator values the calendar days you take off late sales at the delayed compensation rate, and the chasing hours you take off every trade. Every default marked illustrative is an assumption to replace.

Where faster settlement pays, lever by lever

Put your own late sales into the formula

A desk that sells a few hundred late positions a year carries most of its value in the first line; a desk that mostly buys carries it in staff time and forfeits avoided. Run it with your own quarter before you decide anything.

Is your settlement desk ready for software that reads the mail and the credit agreements? Eight scored questions and one to reflect on

In shortPick the answer closest to your desk today. Eight questions score 0 to 2; the last is for reflection. The meter adds up your score as you go, and each question says why it matters and what a strong answer sounds like.

Three bands, and the next step for each

Sixteen tests for loan settlement software or a settlement service: reading, consent clauses, delayed compensation and evidence

In shortAsk every vendor the same questions, us included. The answers show whether a tool moves documents or reads them, whether it can find the real hold and the way through, whether its delayed compensation matches the LSTA terms, and what evidence you keep.

A ten-week trial on your own trades: replay a closed month, run beside the desk, then decide on four numbers

In shortMeasure first, replay a month you already know the answers to, then run beside the desk on live trades with your analysts sending every message. Decide with four numbers. None of these steps commits you to a vendor.

1. Measure a month: median business days, share inside T+7, delayed compensation paid and received, late days by cause.
2. Gather the inputs: a closed month's mailbox, platform history and the credit agreements behind it, with approvals to share them.
3. Replay it: score the tool's holders, deemed consent dates and claims against what happened on each trade.
4. Run beside the desk on live trades for four weeks, analysts sending every message and approving every claim.
5. Decide with four numbers: calendar days past T+7 on sales, wrong findings per hundred trades, claim differences, analyst hours per trade.

The figures the trial records, and why each matters

What people ask about loan trade settlement: T+7, delayed compensation, cost of carry, consent and participations

In shortThe questions settlement teams and buyers search for most, each answered on its own.