CLO managers are responsible for extensive due diligence on investment-related functions, such as credit strategy and performance measurement, as well as non-investment functions in the middle and back-office where demands are especially challenging. However, with the implementation of automation technology, these activities can be less burdensome by helping to reduce manual work, improve control and mitigate operational risk. Let’s explore how.
Market volatility and lower interest rates have put significant pressure on funds to meet their future liabilities. As a result, sovereigns and pension funds are experiencing a rapid rise in portfolio complexity, driven in part by increases in alternative allocations and a growing trend toward managing equities and fixed income in-house.