FIXED INCOME MANAGERS NEED TRANSPARENCY ACROSS THEIR WHOLE PORTFOLIO TO GROW AND SCALE

Comprehensive visibility across public and private markets data is critical for strategic and risk oversight.
 
The private markets industry is forecast to exceed $30 trillion by 2030, according to data from Preqin, a part of BlackRock. Growing allocations to private as well as public fixed income are driving increasing demand for a unified technology platform that can offer broad as well as deep coverage across asset classes. This platform must meet multiple needs, from data integration to staying ahead of compliance and reporting requirements. Meeting these needs can be challenging for managers.

Challenge – dispersed data limits visibility

Managers must be able to track a vast array of data – issuer information, security identifiers, coupon rates, payment schedules, credit ratings, maturity dates, and more – on hundreds or thousands of assets. Data scattered across spreadsheets, emails, and legacy platforms creates inconsistent records, slows reconciliation, and limits visibility over current and future cash and positions. This can lead to blind spots, missed risks and inefficient allocation of working capital. For a start, managers may find themselves holding a cash buffer they don’t need.

The risks become even more complicated for fixed income managers overseeing both public and private assets. Public securities require real-time market, ratings, and regulatory feeds, while private markets data is often opaque or difficult to access. Both types of data typically sit in siloed systems that fail to provide a unified view of a fixed income portfolio, limiting strategic and risk oversight.

Solution – a unified investment platform

An investment platform that meets managers’ oversight needs should offer comprehensive visibility across multiple data points and tools, such as investment and risk exposure, analytics, reporting, and look-through spanning public and private positions. The platform should enable data democratization, providing quality controls and assurance around a security master.

With reference data for every instrument in a portfolio – integrated directly with market data providers, trading venues, and third parties – the platform can automate workflows to handle all accruals and payment milestones, creating a settlement ladder showing cash at every key interval.

Integrating predictive analytics to highlight liquidity gaps or emerging risks creates a strategic foundation on which to make effective and efficient decisions. This foundation applies across private and public fixed income products, unifying the data and illuminating the whole portfolio, from bonds to bank loans to private credit instruments.

Impact – the foundation managers need to grow and scale

A robust security master providing real-time visibility across a manager’s whole portfolio enables faster decision-making while lowering operational risk. With improved accuracy and speed, liquidity planning and meeting compliance requirements become more efficient. That's why for managers looking to grow and scale, having the right technological foundation in place is vital.

The Aladdin platform offers access to an ecosystem of partners providing automated, accurate, and auditable data to support real-time decision-making and risk analysis. With partners like MarketAxess and Tradeweb, Aladdin makes managing risk and scaling up across asset classes faster and more efficient than before.

“With Aladdin, managers don’t need to spend time they don’t have trying to find the right solution providers to support a growing book of business,” said Tim Garbien, Managing Director and Head of Aladdin Business Development, Americas at BlackRock. “Our flexible, interoperable, open platform integrates seamlessly with your existing architecture, unlocking your ability to build differentiating tech in and around the platform.”