How Startup Kopentech Is Disrupting CLO Underwriting

The video discusses TSW, a refinancing process that uses auctions to reduce costs. It explores the potential for automation in the securities industry, particularly in the CLO market, and the challenges of adopting new technologies due to the industry's reliance on relationships. The video also covers the steps needed for implementation and the potential impact on Wall Street dealmakers.

What is one of the main benefits of using an auction process in refinancing?

• Increased complexity

• Higher interest rates

• Longer processing time

• Cost savings

Why might some Cielo managers hesitate to adopt new refinancing methods?

• Lack of technological infrastructure

• Increased regulatory scrutiny

• Higher costs involved

• Fear of damaging relationships with banks

What is a significant challenge in automating segments of the CLO market?

• Lack of interest from investors

• Limited market size

• Complexity and relationship-driven nature of the industry

• High costs of technology

What is required for the new online Cielo feature to be adopted?

• Immediate market-wide implementation

• Inclusion in the documentation of new Cielos

• Approval from all banks

• Government intervention

What is one potential impact of adopting new technology in the CLO market?

• Disintermediation of Wall Street dealmakers

• Higher legal fees

• Slower transaction times

• Increased reliance on Wall Street dealmakers