Significant Risk Transfers and Capital Relief Trades

Credit Consensus Data for Risk Sharing Transactions

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Why Credit Benchmark?

Credit Benchmark data can help drive efficiencies and transparency in your risk sharing business

Significant Risk Transfers, also known as Capital Relief Trades, are growing in popularity as banks seek to release and redeploy regulatory capital, and investors are looking to benefit from exposures to bank-owned assets.

As a result, investors require a higher level of informational transparency than what is currently available in the market to ensure that they invest in portfolios that accurately reflect their risk / return profile.

Credit Benchmark’s consensus data and analytics are increasingly utilized by a growing number of investors and issuing banks for greater trade intelligence as market conditions become more challenging.
Screenshot of Credit Benchmark's webapp on desktop, tablet and mobile devices. The image displays pages with information about aggregates, companies' credit scores and settings. On the desktop view, the page shows a graph with credit score distribution. On the tablet and mobile views, the page shows a list of companies with their corresponding credit scores. The background of the webapp is white with blue and gray accents.

Solutions

How we can help your business

Case Study

  The Client
The portfolio management team within a leading European private money management firm, conducting capital relief trades with European banks.

The Challenge
A lack of public ratings, and data staleness for those which were available meant assessing the risk of a new trade was difficult. This was especially true when trying to enter new markets where reliable credit risk data is scarce. These obstacles also made it harder to monitor changes in the risk profile of existing portfolios.

The Solution
Credit Benchmark’s strong coverage on publicly unrated names granted the client confidence to undertake more trades and better monitor their existing portfolio for changes in risk. Noting divergences between Credit Consensus Ratings and traditional agency ratings was important to the client as they considered the bank-sourced consensus view as more trustworthy and up-to-date, and this allowed them leverage in pricing meetings. The provenance of the data based on the internal risk views of over 40 leading global banks also gave them comfort given the fact their trading counterparts are part of a peer group of the same banks providing their risk views to the credit consensus.

In Numbers

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.

Risk Solutions

Other Solutions

Understand your risk

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





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    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.