The Financial Counterpart Monitor from Credit Benchmark provides a unique analysis of the changing creditworthiness of financial institutions.
Financials have seen a mixed bag in terms of credit movement this month, with a slight bias towards deterioration across all counterpart categories.
Central Banks, North American Banks and Latin American Banks all showed a bias towards credit deterioration this month, with improving to deteriorating ratios of 1:1.8, 1:1.6 and 1:1.3 respectively. On the other hand, Globally Systematically Important Banks (GSIBs) and APAC Banks both showed a bias towards credit improvement, with improving to deteriorating ratios of 1.5:1 and 1.3:1 respectively. Both Global and EMEA Banks came in at neutral.
The Intermediaries also showed more instances of deterioration than improvement. Prime Brokers were the most in the red with a ratio of 5.0 deteriorations to every improvement. However, Central Clearing Counterparts (CCP) came out on top with an improving to deteriorating ratio of 3.0:1.
The Buy-Side has no instances of more net improvement than deterioration. Mutual Funds were the most in the red with a ratio of 1.7 deteriorations to every improvement. Sovereign Wealth Funds and Pension Funds both remained neutral.
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.