Best data analytics provider/vendor—Bloomberg

Best data analytics—Bloomberg

Bloomberg’s Risk & Investment Analytics suite delivers insights across traditional and complex emerging risks by utilizing its market and reference data. From risk management teams and modelers to quant portfolio managers, Bloomberg furnishes clients with data and analytics to manage liquidity risk, credit risk, digital asset exposure and physical climate risk, as well as supporting their investment decisions.

Secret sauce

Bloomberg provides a suite of traditional risk data and alternative risk metrics that enables clients to manage risk rather than simply reporting on it. This includes market-driven analytics to manage credit and liquidity risks, allowing risk managers to systematically incorporate market dynamics into their frameworks. This ensures they have a detailed view of brewing risks and increases their credibility with front-office counterparts by aligning the data/information available to them.

Recent milestones

• Enhanced physical risk solution to quantify financial impacts and expose granular risk factors (for example, cyclones)
• Launched a tool to automatically identify crypto asset exposure across asset classes, with fund look-through capabilities
• Introduced credit risk analytics to detect abnormal issuer default probability levels, flag yield-curve inversions and provide five years of historical data.

Future objectives

Bloomberg plans to:

• Expand coverage of market-implied probability of default to deliver an early warning indicator on a wider universe of companies
• Launch a new dataset of geopolitical risk ratings and scores to help quantify financial impacts of global tensions
• Produce datafeeds derived from proprietary research dashboards to enable programmatic use of market trends and sector activity.

Why Bloomberg won

Bloomberg’s second win in this year’s IMD & IRD Awards came in the category that received no fewer than 15 entries, making it the most popular and statistically most competitive category of all 33 comprising this year’s edition. As has been noted before, possessing large volumes of high-quality, complex market, reference, private markets and alternative data doesn’t in itself provide firms with any tangible benefits. It is only when they are able to interrogate that data and identify signals and trends within it to inform and drive their investment strategies that they can realize genuine value. To that end, Bloomberg’s Risk & Investment Analytics suite provides the kind of analytics firepower that allows firms on both sides of the market to manage a range of risks, including liquidity and credit risk, digital asset exposure and physical climate risk. Data analytics tools really do provide firms with the ability to shed light on asset classes, markets, counterparties and industries, with the view to making the most informed, transparent, repeatable, defendable and accurate investment decisions, a notion Bloomberg understands and supports better than most.