Bloomberg To Incorporate Credit Risk Data

Bloomberg customers will now be able to use the news site’s terminal to look at Credit Benchmark‘s credit risk data, which comes from risk views of the world’s largest financial institutions, according to a press release.

Clients will also be able to use the data for an enterprise use case, the release stated.

Bloomberg is providing the data in the current global economic crisis to aid the markets with ready, accessible information that is timely and transparent for active credit assessments and predictive models to assess the volatility of the current market.

The release stated firms have more often been looking for data to validate their own internal counterparty and credit risk assessment. They also look to supplement the external ratings from outside companies.

Firms can bolster risk management, loan and debt underwriting, portfolio optimization, supply chain risk management and investment idea generation, the release stated. They can also assess ongoing credit quality.

“The broad coverage provided by Credit Benchmark will allow for easier credit assessment of non-rated companies, as well as provide a complementary point of information to existing analytics on the Bloomberg Terminal,” said Mark Flatman, global head of Core Product at Bloomberg, in the release. “As the data will be available in all of our workflow tools, it can easily be incorporated as an additional input to the decision process.”

Mark Faulkner, co-founder at Credit Benchmark, said in the release that the team-up with Bloomberg “offers a welcome opportunity to provide much-needed credit transparency in areas such as securities finance, client onboarding, and supply chain risk management.”

The pandemic has created rifts of uncertainty in the markets. To keep credit flowing, FICO rolled out the FICO Resilience Index, intended to complement the FICO Score and let lenders take resiliency into account when making a credit decision. Lenders often raise their standards during times of turmoil, but the Resilience Index will let them find borrowers who shouldn’t need to abide by stricter standards due to being able to withstand financial pressures.