Versanea lending platform founded by four of the world’s largest banks, announced its launch on Wednesday (March 16), saying it wanted to bring “transparency, efficiency and speed” to the $5 trillion syndicated loan market.
Founded by JP Morgan, Bank of America, Citi and Credit Suisse and set to launch later this year, Versana “will aim to reduce operational challenges in the corporate lending market by digitally capturing bank agent reference data directly from their source on a real-time basis,” the company said in a press release.
Versana named Cynthia Sachs, a twenty-five-year veteran of Wall Street, to be its CEO. Sachs has spent much of his time building and overseeing lending-related businesses in banking and technology, working for companies including Morgan Stanley, Natixis and Bank of America, and previously held the position of global head. fixed income valuations from Bloomberg.
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At Bloomberg, Sachs led the launch of BVAL, the company’s valued pricing service. His most recent role was CEO and Chief Investment Officer of Athena Art Finance, Carlyle’s specialty finance startup.
“Versana is backed by some of the biggest players and is built by industry veterans with decades of experience in the lending ecosystem,” she said. “We know first-hand the challenges that exist today and are passionate about solving the market’s inefficiencies and inherent risks, preparing it for accelerated growth for years to come.”
Versana says the syndicated loan market is poised for substantial growth, especially with inflation driving up interest rates, forcing borrowers to shift to floating rate financial products.
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“But the highly fragmented and inefficient nature of the current market ecosystem – average settlement times are over 20 days – often leads to frustration among participants, significant additional costs and a high level of operational challenges,” said said the company.
Figures released by the US Bureau of Labor Statistics last week showed inflation was at a 40-year high – 7.9% – thanks in part to rising prices for food, housing and gasoline.