In this article, Agnes POLIS (ESSEC Business School, Mastère Specialisé Direction Financière et Contrôle (MS DFC), 2024-2026) shares her professional experience, having worked as a Loan Closer at Bank of America, overseeing Collateralized Debt Obligation (CDO) transactions within American and British portfolios valued at over 500 million USD.
About Bank of America
Bank of America was originally founded in 1904 by Amadeo Giannini in San Francisco as the Bank of Italy, created to serve immigrants overlooked by other banks. It officially became Bank of America in 1930 and has since grown through major mergers, including its acquisition of Merrill Lynch in 2009. Today, the company operates in all 50 U.S. states and over 35 countries, offering services in consumer banking, corporate banking, wealth management, and investment services. Its strategy centers on responsible growth, digital transformation, and deepening client relationships while maintaining strong risk management practices. Bank of America’s mission is to improve financial lives through the power of every connection it makes with its clients, communities, and employees. As of 2024, it serves over 69 million clients worldwide and manages assets surpassing $3.2 trillion.
Logo of Bank of America
Source: the company.
My work
Agnes worked for Corporate and Investment Banking division where the Loan Closing department manages the operational, legal, and financial processes associated with syndicated loans and structured finance products, including CDOs.
Upon completion of the training program, Agnes assumed responsibility for a portfolio of Collateralized Debt Obligation transactions valued at over 500 million USD. These transactions primarily involved American and British corporate borrowers. A Loan Closer in the Collateralized Debt Obligation (CDO) market, especially around 2007 (before the financial crisis hit), had a very specific but crucial operational and legal role within structured finance desks, investment banks, and loan syndication units.
Collaterized Debt Obligation market
Source: Allied Market Search
Her core responsibilities included: transaction management & documentation, coordination with internal and external stakeholders, funding & settlement oversight, recordkeeping & compliance, and fee and payment management.
Transaction Management & Documentation
- Coordinate the closing process for syndicated loans that would be bundled into CDO portfolios.
- Review and manage documentation for accuracy and completeness, including loan agreements, credit agreements, security agreements, intercreditor agreements, and other ancillary documents.
- Ensure all closing conditions precedent (CPs) and legal requirements were satisfied prior to disbursement of funds and inclusion in a CDO structure.
Coordination with Internal and External Stakeholders
- Act as a liaison between deal teams, syndicate desks, investors, legal counsel, custodians, trustees, and rating agencies.
- Coordinate closing calls and circulate closing memos summarizing the deal structure, participant roles, and transaction details.
Funding & Settlement Oversight
- Manage the transfer of ownership documentation and ensure timely settlement with custodians or agents.
- Track and confirm receipt of wire instructions, fee payments, and disbursement of funds.
Recordkeeping & Compliance
- Maintain detailed records of closing checklists, loan documents, approvals, waivers, and amendments.
- Ensure compliance with regulatory guidelines and internal credit risk policies.
- Flag any discrepancies, missing documentation, or legal exceptions to management.
Fee and Payment Management
- Confirm payment of closing fees, commitment fees, arrangement fees, and legal fees associated with each transaction.
- Manage post-closing adjustments and corrections if necessary.
Required skills and knowledge
This position required a high level of technical precision, attention to detail, and effective coordination with stakeholders located in multiple international offices.
The role of a Loan Closer in the CDO market requires a combination of technical knowledge, legal expertise, and strong organizational skills. Below are the key skills and knowledge areas that were important in 2007:
Technical Skills
- Understanding of Structured Finance: Knowledge of CDOs, CLOs, and the broader structured credit market, including the mechanics of asset-backed securities.
- Financial Analysis: Ability to assess loan portfolios, evaluate risk, and understand credit ratings and eligibility criteria for collateral.
- Knowledge of Loan Syndication: Familiarity with syndicated loan markets, participants, loan documentation, and the process of loan syndication.
- Excel and Financial Modeling: Proficiency in Excel for tracking loan data, financial calculations, and ensuring proper documentation management.
- Familiarity with Loan Documentation: Deep understanding of key legal documents, such as loan agreements, credit agreements, intercreditor agreements, and collateral agreements.
Desirable Soft Skills
- Effective Communication: Ability to communicate complex financial and legal information to a range of stakeholders, including senior managers, legal teams, investors, and rating agencies.
- Attention to Detail: Thorough review of all documentation and loan conditions to ensure accuracy, consistency, and compliance with all requirements.
- Strong Organizational Skills: Ability to keep track of numerous documents, deadlines, approvals, and closing conditions in a fast-paced, high-pressure environment.
- Problem-Solving Abilities: Ability to identify discrepancies or issues with documentation or compliance and proactively resolve them to ensure smooth transaction closures.
What I learned
The primary outcomes of this role included:
- Developing a comprehensive understanding of CDO structures and associated operational processes.
- Gaining experience in managing cross-border financial transactions within a regulated environment.
- Acquiring practical skills in transaction lifecycle management, documentation review, and risk control procedures.
- Building competencies in stakeholder coordination within geographically dispersed, multicultural teams.
Financial concepts related to my job
I present below three financial concepts related to my work:
Collateralized Debt Obligation (CDO) Structures
A CDO is a financial product that combines different types of debt (like loans) into one package. It’s then divided into different levels (or “tranches”) based on risk. Some parts of the CDO offer higher risk and higher returns, while others offer lower risk and returns. The Loan Closer ensures the loans are eligible to be included in these CDOs and that all paperwork is in order.
Syndicated Loans
These are loans provided by a group of banks or lenders, rather than just one. The Loan Closer’s role is to make sure the loans are properly documented and structured before they are bundled into CDOs (Collateralized Debt Obligations). These loans are used in CDOs because they are easier to manage and provide diverse investment options.
Loan Documentation and Covenants
Loans come with legal agreements that outline the terms and conditions, including rules called covenants that limit what the borrower can or can’t do. These covenants are important for managing risk, especially in CDOs. The Loan Closer ensures that all the legal documents are correct and that the covenants are clear and in place to protect the lenders.
Related posts on the SimTrade blog
▶ My Internship Experience as a Corporate Finance Analyst in the 2IF Department of Inter Invest Group
Useful resources
Anna Katherine Barnett-Hart The Story of the CDO Market Meltdown: An Empirical Analysis Harvard Kennedy School.
About the author
The article was written in May 2025 by Agnes POLIS (ESSEC Business School, Mastère Specialisé Direction Financière et Contrôle (MS DFC), 2024-2026).