AI Innovation in Complex Structured Finance and Private Credit

This post was authored by T-REX’s CTO, Arad Shaiber.

The recent leaps and advancements in generative artificial intelligence (GenAI) technology are mesmerizing, but beyond the fascination, a question remains: how will AI actually affect our day-to-day lives? Will we have to feed ChatGPT questions to reap the benefits of AI, or will the benefits of AI seamlessly enter daily life? 

When it comes to commercial and consumer banking, for example, employees and customers alike have experienced the benefits of AI in defending against fraudulent activity with pattern recognition and anomaly detection. Whereas in the past, consumers would need to manually identify unauthorized transactions on their monthly credit card statement, AI and machine learning algorithms now provide more peace of mind with real-time detection and resolution.

In the world of structured finance and private credit, we have yet to see much AI functionality empowering market participants, but it will be critical to keeping pace with the growth and complexity of the industry. T-REX is already making strides in this direction. We are focused on developing new capabilities to help clients in complex structured finance and private credit solve their challenges with machine learning, generative AI, and predictive analytics.

Challenges and Opportunities in Complex Finance

Complex deals are marked by intricate deal structures, large amounts of data in unique formats from different sources, with multiple parties involved. Credit asset managers, issuers, and trustees alike crave automated data management, exception tracking and improved data infrastructure to reduce manual processes and the associated operational costs.

AI will undoubtedly make the biggest impact in the complex finance industry in the realm of deal data digitization, which will lead to improved analytics, reporting, and investment outcomes. It’s about spending more time on actionable analysis, client outcomes and exception handling, and less time on data intake and rote modeling tasks.

AI Innovations on T-REX

As experts in complex structured finance and private credit, T-REX’s engineering teams have been laser focused on the most transformative uses of enterprise-grade AI to solve client problems, ensuring they are pressure-tested, secure, and trustworthy for use in critical data workflows.

By moving successful proof-of-concept projects into production, T-REX aims to significantly advance data automation capabilities for its clients, indicating a future where AI’s integration into complex finance not only streamlines operations but also drives better financial decisions and outcomes.

T-REX Is Embedding AI in Critical Workflows

  • Data Management: Augment our data automation features based on historical data mapping with machine learning to expedite document processing on platform.
  • Deal Modeling: Automated parsing of offering memorandums/indenture documents to create digitized deal models.
  • Analytics: Extend our analytics suite with generative AI to give deeper insights in portfolio analysis, like refining asset allocation strategies.
  • Reporting: Build on our automated reporting features with predictive analytics to compile reports complete with recommendations based on business rules.

Building Upon Early Wins and Accelerating Speed to Market 

A recent proof of concept relying on AI succeeded in onboarding a large back book of private credit and structured finance deals to T-REX faster than ever, so that our private credit client working with complex data, assets, and deal structures, could holistically manage their portfolio using T-REX’s analytics suite.

The offering memorandums of complex deals include hundreds of pages of important documentation and data, including the deal’s general properties, tranches, expenses, reserve accounts, collection accounts, structure and dynamic parameters, and payment waterfalls. T-REX can swiftly parse this information using AI and create the model on the T-REX platform, only requiring the review and approval from the user. This allows clients to focus their efforts on running advanced analytics and reporting on their models.

This application of AI ensures clients can bring full portfolios of many different asset and deal types onto T-REX, and start running analytics and reporting without significant downtime to onboard deals.


Interested in learning more about our AI roadmap and how T-REX can help you automate data operations and enhance portfolio analysis? Get in touch.

Previous Post

T-REX and Alter Domus Announce Partnership to Automate ESMA Reporting