Asset Manager - Covenants

Reports to

Managing Director, Asset Management - Surveillance 

Job Purpose

The Covenant Asset Manager is responsible for ensuring timely collection, review, and analysis of borrower operating statements and performing DSCR, Net Worth and Liquidity covenant testing in accordance with the terms outlined in loan agreements. This role is critical to maintaining compliance with financial covenants for the Barings portfolio which consists of 502 loans totaling $25.2B.  This role is also critical in modeling and reporting on Quarterly Specific Loan Loss Reserves.

Duties and Responsibilities

Operating Statement Collection & Review 

• Monitor quarterly and annual reports to identify received operating statements on covenant loans.
• Review and approve financials for completeness and accuracy; follow up with analysts or asset managers to resolve unexplained variances.

Test Approximately 550 DSCR covenants annually 

• Perform DSCR calculations as defined in the loan agreement, including: 

• Manual amortization calculations for interest-only loans.
• Trailing 12 or 6-month manual aggregation of monthly operating statements.
• Create forward-looking pro forma analysis when required.
• Consolidation of property-level data for multi-property loans.
• Enter DSCR results into the Enterprise system with detailed commentary on methodology and outcome.
• Flag and escalate covenant failures to the Asset Managers and initiate follow-up actions as needed.

Test approximately 300 Guarantor Financials & Net Worth/Liquidity Testing 

• Reference and update the manual Guarantor Tracker to verify receipt of financials.
• Manually aggregate Net Worth and Liquidity figures across multiple guarantors.
• Document which guarantor statements were used to pass the covenant and enter results into the system.

Responsible for quarterly calculations of Specific Loan Loss Reserves 

• Responsible for updating and running the Specific Loan Loss Reserve model quarterly.
• Identify new additions to the Specific Loan Loss Reserves and research the root cause.
• Update the status of loans listed in the Loan Loss Reserve that have previously been included on the reserve schedule.
• Update the Specific Loan Loss Reserve power point presentation
• Work with Technology support to update the model as needed

Qualifications

• Bachelor’s degree in Finance, Real Estate or Accounting
• 3 - 5 years of loan servicing experience, predominantly commercial real estate loan servicing for multiple capital sources/investors
• Deep understanding of commercial real estate operations and risks
• Knowledge of commercial real estate finance including an understanding of all types of loans, property types and real estate lenders
• Preferred experience in a cross-functional team environment with familiarity in
  • Loan closing and boarding, billing and collections
  • Loan documents, including covenants and triggers
  • Letters of credit, reserves, UCC’s, liens
  • Lease abstracting and analysis
  • Property inspections and subsequent repairs
• Strong leadership and problem-solving abilities
• Exceptional verbal and written communications skills
• Accuracy oriented with a sense of urgency and strong focus on customer service
• Ability to work in a fast paced, monotonous and deadline driven environment 
• Strong interpersonal and organizational skills
• Understanding of risk review and watch list reporting
• Working knowledge of Enterprise! (or similar large scale servicing system)
• Strong in Excel and ability to learn new software quickly