Why Credit Benchmark?
Better manage your clearing member network risk exposure
A lack of reliable credit intelligence on CCP member and member client credit risk at the exact legal entity level can make challenging internal models difficult.
Credit consensus data helps to fill in these gaps on CCP member and member client risk.
Solutions
How we can help your business
Weekly updates as financial institutions revise their opinions allow CCP analysts to continually challenge their own models and assumptions.
Monitor credit views on clearing members who do not have a public credit rating to enrich annual credit assessments of clearing members.
Conduct enhanced portfolio reporting to review trends and generate more frequent management reporting.
Leverage automating alerting on recent upgrades and downgrades within a portfolio.
Expand credit risk analysis to clearing members’ clients, including opaque buy-side names, to gain a picture of member network risk.
Help onboard new members by quickly and easily analysing the credit of new kinds of members including funds.
Case Study
The Client
A leading global derivatives clearing house.
The Challenge
The credit analyst team was spending days inefficiently analysing unrated companies to determine their membership eligibility or when refreshing the house view of existing members. On top of this, the client was concerned about being indirectly exposed to significant second order risk through members’ weaker end clients, and didn’t have the internal resources to assess the credit risk of the 2,000+ entities that made up this second order risk.
The Solution
The client was able to save time by beginning their analysis of potential new members by checking the entity’s Credit Consensus Rating, making the membership process quicker and easier. The breadth of the consensus dataset, including publicly unrated buy-side names, also allowed the client to better monitor the credit of their members’ clients, and monitor key markets with Credit Benchmark industry, sector, and geography indices.
In Numbers
Entities with Credit Consensus Ratings
Bond and Loan Rating Assessments, Representing $34+ Trillion Outstanding
Risk Observations Feeding Into Weekly Data Updates
Credit Risk Observations Collected Since Launch in 2015
Industry & Sector Indices
Countries Covered
Major Global Banks Contributing, Almost Half Are GSIBs
Credit Analysts Contributing Risk Views
Of Universe Unrated by Traditional Rating Agencies
Of Corporate Universe Are Private Companies
The Benefits of Consensus Credit Data
Rating the unrated
Unparalleled coverage of public and private issuers; filling the gaps left by traditional ratings agencies.
Independent
Free from “issuer-pays” conflict and any bank bias.
Real-world exposure
Driven by the credit views of >40 of the world’s largest regulated banks, almost half of which are GSIBs.
Identify that entity
Risk data is processed through a sophisticated purpose-built mapping engine.
Dynamic
The consensus is refreshed weekly to provide dynamic indicators of potential credit risk changes.
Alerting and monitoring
Assess risk over the lifetime of a transaction.
Secure reporting
Ease of internal integration within reporting.
Expanding footprint
A unique growing global dataset.
Related Material
Risk Solutions
Other Solutions
Specialty Credit & Political Risk Insurance
Corporate Treasury
IFRS 9 / CECL Impairment Benchmarking
Securities Finance & Prime Brokerage
Bank Credit Risk Management
Significant Risk Transfer / Capital Relief Trades
Central Counterparty Clearing Houses (CCPs)
Fund Financing
