IMD & IRD Awards 2023: Best data analytics provider—Bloomberg

Overview

Increased uncertainty in financial markets requires a proactive approach to risk management, analyzing risks throughout the trade life cycle, from pre-trade analysis to regulatory reporting. By leveraging its data, Bloomberg produces risk analytics to help clients prepare for the next market event.

The solution

Bloomberg’s Risk & Investment Analytics suite leverages the firm’s reference data, company data and market data to produce risk analytics that help clients tackle increased unpredictability, quickly identify risks, and take appropriate action. This includes both foundational data, such as reference, fundamentals, and corporate structure data, as well as actionable risk insights, built with advanced quantitative models.

Bloomberg’s suite of Risk & Investment Analytics includes datasets on liquidity assessment (LQA), market-implied probability of default (MIPD), fund risk analytics and fund ESG analytics.

Secret sauce

By providing a suite of both traditional risk data and alternative risk metrics, Bloomberg enables clients to manage risk rather than simply report it. This includes market-driven metrics to manage credit and liquidity risks, allowing risk managers to systematically incorporate market dynamics into their frameworks. This ensures risk managers have a detailed view of potential risks and increases their credibility with front-office counterparts by aligning on information.

Recent enhancements

• Launching a new suite of fund-level analytics that provide visibility into the liquidity, credit, and interest rate risk of 70,000 ETFs and mutual funds
• Creating a new screen on the Bloomberg Terminal for detailed credit risk analysis on an issuer and/or sector using MIPD
• Upgrading the LQA model for bonds to improve accuracy through the integration of millions of additional trades and quotes

Future objectives

• Assess physical climate risks by launching a new suite of physical risk metrics based on the latest scientific research and company data
• Increase transparency of global bond liquidity by expanding Bloomberg’s LQA solution to expose aggregate trade volumes for bonds globally
• Improve credit risk management frameworks by combining key foundational data with proprietary risk models to provide a single consolidated data solution for credit risk analysis

Why they won

Bloomberg wins arguably the most competitive category in this year’s IMD & IRD Awards (based on the number of entries received), thanks to its Bloomberg Risk Data & Investment Analytics suite. The service provides users with a range of datasets, including liquidity assessment (LQA), market-implied probability of default, fund risk analytics and fund ESG analytics to help them proactively manage and mitigate their various risk exposures. To that end, the firm’s recently launched suite of fund-level analytics for the ETF and mutual fund markets and the enhancement of its LQA model for pricing/valuing bonds will no doubt be well received by its vast community of buy-side and sell-side users.