Over USD45 billion in holdings of Navient-sponsored ABS have been registered on DealVector’s platform.
DealVector believes this positive response demonstrates investors’ desire for efficient, identity-protected means of communicating with issuers and with each other.
For numerous Navient-sponsored securitisation trusts, 100 per cent of the outstanding face value has now been registered with DealVector.
Navient launched this communication platform in response to certain investors’ interest in extending the legal final maturity dates on their existing ABS bonds. Recognizing that this would require a noteholder vote, and understanding the limitations of traditional notification vehicles, Navient saw the need for a more proactive and technologically advanced approach to reaching investors.
They turned to DealVector’s InvestorLink service, which allows issuers of fixed income deals to create branded all-to-all investor forums where holders can: register their positions anonymously; receive notifications instantly vs. a one week wait with traditional channels; and communicate with either the issuer or other investors using DealVector’s identity-protected messaging features.
DealVector is making major upgrades to the InvestorLink service. Document Repositories have been added to allow issuers to post reports, presentations and other files for investors to access conveniently online. Online Ballots allow investors to complete ballots electronically, eliminating the need to print, complete by hand, and fax. A Vote Tracking Module lets issuers see the aggregate ballots cast broken down by custodian, and compare the results against DTCC’s record of positions held by custodian. This helps target “turn out the vote” efforts to specific custodial accounts.
Regulators, Issuers and Investors have all recognised the need for a faster and more efficient means of bondholder communications, with the SEC even citing this as a factor hampering the securitisation markets in Reg AB II (p 27, section d). DealVector’s InvestorLink service addresses exactly this need.
“We view efficient communication as a key to market health,” says Mike Manning, DealVector’s CEO, “and strive to make this process more efficient than ever before. We see transparency as a benefit not only to investors, but to the functioning of the securitisation market as a whole.”