A European credit fund managing €1.2 B of secured bond exposure replaced quarterly covenant testing with continuous telemetry sourced directly from issuer systems and trustee feeds.

Event-detection lag dropped from an average of 47 days to under 6 days. Two covenant breaches were identified and remediated before they would have surfaced through the legacy reporting cycle.

Internal collateral haircuts applied by the fund's risk committee were tightened on three positions where live LTV trended outside the modelled band, avoiding mark-to-market surprises later in the year.

The case study covers the data architecture, the trustee workflow changes, and the governance model that made continuous monitoring auditable for the fund's depositary.