The Financial Counterpart Monitor from Credit Benchmark provides a unique analysis of the changing creditworthiness of financial institutions.
It has been a positive month for the credit quality of Global Financial counterparts, with a handful of exceptions.
Amongst the banks, Central Banks had the strongest showing, with an improving to deteriorating ratio of 2:1. North America Banks closely followed with an improving to deteriorating ratio of 1.9:1. Globally Systematically Important Banks (GSIBs), Global and EMEA Banks all also showed a bias towards credit improvement. On the other hand, Latin America Banks showed a strong bias towards credit deterioration, with an improving to deteriorating ratio of 1:6. APAC Banks came in at neutral.
The Intermediaries showed more instances of improvement than deterioration this month. Broker Dealers came out on top with an improving to deteriorating ratio of 1.7:1, closely followed by CCP Members and Prime Brokers. Custodians and Sub Custodians were the only group with net deterioration, with a ratio of 2 deteriorations to every improvement.
Amongst the Buy Side, Asset Managers and Insurance Companies came in at neutral this month. Mutual Funds and Pension Funds showed a bias towards credit deterioration, both with improving to deteriorating ratios of 1:1.2.
The Financial Counterpart Monitor from Credit Benchmark provides a unique analysis of the changing creditworthiness of financial institutions. The report, which covers banks, intermediaries, buy-side managers, and buy-side owners, summarizes the changes in credit consensus of each group as well as their current credit distribution and count of entities that have migrated from Investment Grade to High Yield.
The data, which is based on the credit risk views of Credit Benchmark’s contributing financial institutions, is also available at the legal entity level. Users of the data can monitor and be alerted to the changing credit consensus of their financial counterparts.