NAV or Net Worth decline covenants (“NAV Covenants”) serve as a warning of material credit deterioration, and a breach of the threshold can result in a default or termination right under the agreement.

Sharp declines in AI-linked securities and Korean equities can trigger NAV thresholds in your trading agreements—putting vital financing at risk. Use QDS to confirm your NAV triggers and monitor potential covenant breaches before they escalate.

With September approaching, this is a good moment to check in on where your firm stands with the Uncleared Margin Rules (UMR) as it relates to CFTC covered swap entities.

Artificial intelligence has rapidly moved from experimentation to daily use across investment management firms. From research and data analysis to internal workflows, reporting, and knowledge management, AI-powered tools are increasingly embedded in how firms operate.

As discussed in our previous posts on side letter negotiation and structuring, these agreements are often the product of careful, strategic drafting.

While covenants are designed to protect lenders, they are only as effective as a firm’s ability to track, interpret, and act on them in real time. 

As investment managers expand their offerings beyond traditional commingled funds, separately managed accounts (SMAs) have become an increasingly important growth lever—particularly with institutional allocators seeking customization, transparency, and control

As investment managers head into 2026, the operational, regulatory, and counterparty landscape continues to grow more complex.

Recent volatility across the private credit markets and the potential for those conditions to carry over into secondary and public trading markets has raised new questions around financing stability for investment managers.

As a follow-up to our October blog on credit facility oversight, we are taking a deeper look at how automated systems can streamline covenant tracking.