Securities Finance and Prime Brokerage

Credit Consensus Data for Securities Finance and Prime Brokerage

Why Credit Benchmark?

Access more inventory, optimize capital allocation, and improve overall organizational efficiency

Understanding and communicating counterparty creditworthiness within a firm or to its clients is critical to doing business and driving prudent decision-making.

The sheer volume of beneficial owners and borrowers involved in securities finance transactions creates logistical issues and data bottlenecks that can impact business.

Credit Benchmark data provides transparency into the securities lending market and its participants, benefiting beneficial owners, lending agents, tri-party providers, principal borrowers, and technology data providers.

Solutions

How we can help your business

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Capital management

Understanding the optimal industry and rating can help benchmark portfolio-wide RWA optimization to drive the most capital-efficient business. The ability to understand what others think can help inform and support decisions to revise classifications that are detrimental.

Risk management

Access to Credit Consensus Ratings on 75,000+ legal entities, including banks, subsidiaries, CCPs, members, asset managers, and their underlying funds, helps clients measure, manage, and monitor counterparty risk on all sides more quickly. Alerting and monitoring capabilities track any portfolio credit risk movements.

Market structure

Getting permission to do business with unfamiliar or unrated counterparts is a significant challenge for any business and an obstacle for peer-to-peer flow. Credit Benchmark facilitates and speeds up approval of new types of counterparts.

Enhanced reporting

Consensus data seamlessly integrates into agent reporting systems, providing borrower and beneficial owner information. This data helps fill the data gaps and speeds up counterparty trading approvals.

ALD and onboarding

Credit Benchmark’s coverage of 35,000 funds can help improve the understanding and decision-making process by providing transparency and the ability to focus, prioritize and optimize management of capital and RWAs to do more business.

Collateral management

Credit Benchmark data expands collateral eligibility by combining entity-level ratings with open-source notching to the security level, offering benefits across the market and to its participants.

Case Study

The Client
A major US-based agent bank and asset manager.

The Challenge
Many of the client’s beneficial owner and borrower names were publicly unrated, making it challenging to onboard and do business quickly. Capital constraints and regulatory imperatives made it difficult to do more standard business.

The Solution
Credit Benchmark allowed the agency lending program to see the borrowers that they are facing off against. The data was presented in reporting both internally and externally to their beneficial owner clients. The front-line credit team was able to approve and review fund counterparts more efficiently, facilitating more business. Benchmarking industry classifications and counterparty ratings helped the organization reduce RWA and optimize capital.

In Numbers

75,000

Entities with Credit Consensus Ratings

800,000

Credit Risk Estimates Collected Each Month

50 Million

Credit Risk Estimates Collected Since Launch in 2015

1,200

Industry & Sector Indices

160

Countries Covered

Major Global Banks Contributing, Almost Half Are GSIBs

20,000

Credit Analysts Contributing Risk Views

90%

Of Universe Unrated by Traditional Rating Agencies

90%

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 twice monthly 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

Understand your risk

Request a coverage check of your portfolio & access unique insights and analysis from our exclusive, contributed credit risk dataset.

Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.