Bloomberg Launches Market-Driven Daily Credit Risk Indicator
- Risk Management , Credit Risk
- 27.07.2021 03:15 pm
Bloomberg today announced its Market-Implied Probability of Default (MIPD) product, a fully market-driven creditworthiness indicator, is now available to both Enterprise Data and Bloomberg Terminal clients globally. MIPD enables clients to easily incorporate creditworthiness metrics within their existing workflows for a more holistic approach to credit risk management.
“Market participants are generally aware of potential credit issues ahead of official rating downgrades or defaults; and while CDS prices can serve as indicators, they are often limited with fewer issuers traded and reduced liquidity,” said Brad Foster, Global Head of Enterprise Data Content at Bloomberg. “By quantifying market sentiment underpinned by BVAL’s rich data sets, MIPD provides a powerful early warning creditworthiness assessment for a wide range of issuers across the curve that can help investors navigate changing market conditions, including both issuer-specific news as well as market-wide events.”
MIPD provides clients with a highly responsive, transparent, daily credit risk assessment that incorporates data from BVAL, Bloomberg’s best-in-class evaluated pricing service, to proactively estimate fixed income market sentiment and quickly react to changing market and issuer-level conditions. This solution helps anticipate credit deterioration such as major rating downgrades and defaults ahead of traditional credit analysis, allowing clients to confidently make risk and investment decisions.
MIPD is a premium Enterprise Data solution that is available to Bloomberg Data License clients, as well as on the Bloomberg Terminal through a new dedicated screen accessed via MIPD<GO>, W<GO> and via the Excel API. The solution includes implied probability of default for over 36,000 issuers and multiple sectors across the term structure from 1 to 20 years.
Bloomberg’s Enterprise Data business produces high-quality pricing, reference and regulatory datasets, real-time market, event and news data, and liquidity analytics along with data management and distribution technologies. For more information about Bloomberg’s MIPD solution, please click here.