CUSIP Global Services (CGS) announced the launch of a new CUSIP service for the private credit market. Developed in conjunction with CGS operator FactSet Research Systems Inc. (FactSet), the new service improves transparency and efficiency in the rapidly growing direct lending space, which includes direct loans, syndicated loans, and collateralized loan obligations (CLOs), the new service is being made available both as a standalone file and in the core CGS database product.
The CUSIP is a nine-character alphanumeric security identifier that captures the unique attributes of issuers and their financial instruments throughout the U.S. and Canada. Widely recognized as a trusted standard in the financial markets, CUSIPs are a foundational building block that allow for efficient trading, clearing and settlement across dozens of asset classes.
By adding CUSIP coverage for the U.S. private credit markets, which are now estimated to top $2 trillion in assets, CGS is making it possible for market participants to quickly and accurately determine critical entity- and asset-level information that is central to trading, clearing, settlement and portfolio management activities.
“As investor interest in U.S. private credit markets continues to grow, the ability to accurately identify and reconcile issuer and security details will be a key driver of liquidity and improved efficiency,” said Scott Preiss, Senior Vice President and Global Head, CGS, “CGS has decades of experience developing unique identifiers for the syndicated corporate loan market based on our close work with the LSTA, and we look forward to bringing that expertise to bear for the private credit markets.”
CGS developed the workflows for private credit CUSIP assignment in collaboration with FactSet to efficiently ramp up coverage of private credit facilities. FactSet is leveraging Business Development Company (BDC) SEC filings to identify, concord, and maintain unique instruments for CUSIP assignment eligibility during the initial phase. Currently over 3,000 private credit CUSIPs have already been assigned via this approach. Over the next year, CGS will expand its private credit CUSIP service to include other alternative credit instruments, working with FactSet, the LSTA, and other interested parties to address the needs of the marketplace.
“Private credit has become the fastest growing alternative asset class in North America, and as the market grows, so does the importance of establishing and maintaining accurate and reliable reference and security master records,” said John Costigan, Executive Vice President and Chief Data Officer, FactSet. “FactSet’s comprehensive data solutions address the critical challenges in data transparency and quality by delivering accurate, reliable, and actionable insights. By collaborating with our CGS colleagues, we are taking key steps towards reaching a single source of truth—empowering the private credit investment community to streamline portfolio operations workflows and drive informed decision-making for this rapidly evolving asset class.”
For more information on CGS, please visit www.cusip.com.
Source: CUSIP
