Wall Street players launch syndicated loan platform

Some of Wall Street’s biggest banks are backing a new syndicated loan platform, called Versana, which aims to bring transparency, efficiency and speed to the $5 trillion market.

Founding members JP Morgan, Bank of America, Citi and Credit Suisse say the platform is set to launch later this year, led by fixed-income veteran Cynthia Sachs.

The syndicated loan market should experience significant growth, thanks to rising inflation. But, according to Versana, the fragmented and inefficient nature of today’s market ecosystem – settlement times average over 20 days – often leads to frustration among participants, significant additional costs and operational challenges.

The new company aims to solve this problem by digitally capturing bank agent reference data directly from its source and in real time. In addition to providing greater transparency into loan level details and lender portfolio positions, Versana will streamline workflows and reduce costs, a statement said.

Says Sachs: “Versana is backed by some of the biggest players and is built by industry veterans with decades of experience in the lending ecosystem. We know firsthand the challenges that exist today and are passionate about solving market inefficiencies and inherent risks, preparing it for accelerated growth for years to come.”