Definition: The process of tracking debt assumed by a fund. Leverage monitoring involves tracking loan-to-value ratios, debt-to-equity, and margin requirements to manage risk and ensure asset managers can meet financial obligations.
Example: A company with $10 billion in debt and $8 billion in equity has a 1.25 debt-to-equity (D/E) ratio. Monitoring D/E helps determine if a fund is too aggressive with debt.
Explore the IVP NAV Solution
The IVP NAV Solution can integrate directly with systems used for leverage monitoring. It enables real-time NAV finalization for multiple funds with complete traceability for specific NAV components. It centralizes NAV oversight in one intuitive experience with automated exception identification and trend analysis, so asset managers can quickly and easily remediate NAV anomalies at the key component, share class, and security level.
