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, APAC Banks had the strongest showing, with an improving to deteriorating ratio of 2.3:1. Globally Systematically Important Banks (GSIBs), Global, North America, Latin America and EMEA Banks all also showed a bias towards credit improvement. On the other hand, Central Banks showed a bias towards credit deterioration, with an improving to deteriorating ratio of 1:2.0.
The Intermediaries were wholly positive, with Prime Brokers showing no instances of deterioration. Broker Dealers came out on top with an improving to deteriorating ratio of 2.2:1, closely followed by Custodians and Sub Custodians with an improving to deteriorating ratio of 2.0:1.
Amongst the Buy Side, Asset Managers and Mutual Funds showed a bias towards credit deterioration this month, with improving to deteriorating ratios of 1:1.6 and 1:2.8 respectively. Insurance Companies came in at neutral, whilst Sovereign Wealth Funds showed no instances of deterioration and Pension Funds had an improving to deteriorating ratio of 1.2:1.
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.
