Paul Wilden, global head of capital markets at Apex Group, answers SCI's questions

Q: How is Apex Group involved in the securitisation market?
A: We provide a combination of SPV administration, trustee and agency services to a broad cross-section of asset classes. Our capital markets business is broadly sector agnostic.

Q: What are the firm’s key areas of focus today?
A: Given the proliferation of private debt funds, one area where we add value is by working with funds to manage their loan portfolio administration processes. We are able to surround an opportunity by combining our world-class fund administration and loan administration services, in order to provide a single-source solution to our clients. Non-performing loans, debt restructurings and escrow are all key areas of focus, recognising the current dynamics across the globe.

Q: How does the firm differentiate itself?
A: Apex differentiates itself through our ability to understand the client need and create solutions which are both nimble (from a KYC/client on-boarding and bank account opening (Apex owns European Depositary Bank (EDB)) and meet the client’s requirements. An example of the Apex difference relates to KYC and our ability to both on-board a client and open bank accounts (where needed) in an incredibly quick timeframe.

In my experience, the regulatory environment in which banks operate can mean lengthy periods of time to both on-board new clients and complete account opening processes. Firms like Apex offer an alternative which is both quick and cost-effective.

We are also focused on partnership opportunities with banks. These opportunities have and will continue to be a reality in the Covid-19 world, as levels of distress increase and conflicts of interest which were deemed acceptable pre-Covid are no longer viewed as acceptable.

In addition, changes in strategy or sector and/or geographic exposure reviews may become the catalyst for the need to step away from various administrative roles associated with capital markets transactions. In order for incumbent providers to step away, they need a partner who is able to step in. Apex is ready to step up and replace the incumbent provider, thus ensuring the continuing smooth running of the transaction.

Q: Which challenges/opportunities do you anticipate in the future?
A: In the current environment, we see increased opportunities in connection with non-performing loans. We also expect continuing restructuring activity and opportunities for escrow - which is being discussed as a potential solution to Covid-related supply chain disruption and a mitigant to counterparty credit risk.

In terms of what happens next, I think there are two key questions, the answers to which remain unclear. The first question is whether the unprecedented fiscal easing and stimulus we’ve seen is enough to bring market participants back into the financial markets.

The second is the order in which the markets re-emerge post-coronavirus – in other words, Asia re-emerging first, Europe next and then the US, as opposed to the US re-emerging first, then Europe and then Asia. It will be interesting to see if investors start by focusing on parts of the world that undergo a better or quicker recovery from the pandemic.

Corinne Smith