CreditBenchmark - Detailed Review
Finance Tools
CreditBenchmark - Detailed Review Contents
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CreditBenchmark - Product Overview
Introduction to Credit Benchmark
Credit Benchmark is a financial data and analytics company that specializes in providing Credit Consensus Ratings and Analytics. Here’s a breakdown of its primary function, target audience, and key features:Primary Function
Credit Benchmark collects and aggregates internal credit risk views from over 40 leading global financial institutions, including many Global Systemically Important Banks (GSIBs). These views are anonymized, aggregated, and published twice monthly to provide a unique, consensus-backed measure of credit risk. This approach offers an alternative to traditional issuer-paid rating agencies and third-party model vendors.Target Audience
The primary target audience for Credit Benchmark includes risk professionals, financial institutions, and other market participants who need accurate and comprehensive credit risk data. This data is particularly valuable for banks and financial institutions looking to benchmark their internal credit risk assessments against a global peer group.Key Features
Credit Consensus Ratings (CCRs)
Credit Consensus Ratings (CCRs): These ratings cover over 100,000 entities globally, including corporates, financial institutions, funds, and governments. More than 90% of these entities are unrated by major credit rating agencies and are predominantly private companies.Coverage and Depth
Coverage and Depth: Credit Benchmark provides extensive coverage, with ratings for over 110,000 entities across 156 countries. This includes 48,000 corporates, 13,000 financial institutions, 38,000 funds, and 2,000 government or other organizations.Analytical Tools
Analytical Tools: The platform offers various analytical tools such as credit transition matrices, correlation matrices, and credit indices. These tools help in monitoring, managing, and mitigating credit risk. For example, the credit transition matrices track and project credit rating migrations, while correlation matrices highlight relationships across different industries.Partnership with Bloomberg
Partnership with Bloomberg: Credit Benchmark partners with Bloomberg to offer rating assessments for bonds and loans issued by over 40,000 entities. This service combines Credit Benchmark’s Credit Consensus Ratings with Bloomberg’s security reference dataset, providing security-level rating assessments for approximately 130,000 bonds and loans.Credit Risk IQ Reports
Credit Risk IQ Reports: Credit Benchmark offers over 10,000 free monthly Industry Reports and a new online portal, Credit Risk IQ, which provides in-depth analyses on evolving macro credit trends. These reports include industry- and sector-level risk analyses, credit rating transition matrices, and correlation matrices.Data Access
Data Access: The data is accessible via various channels, including a Web App, Excel add-in, API, flat-file download, and third-party channels like Bloomberg. Credit Benchmark’s unique approach to credit risk assessment, backed by the collective expertise of over 20,000 credit analysts, makes it a valuable resource for financial institutions and risk professionals seeking accurate and comprehensive credit risk data. CreditBenchmark - User Interface and Experience
User Interface and Experience
The user interface and experience of Credit Benchmark are designed to be user-friendly and efficient, catering to the needs of finance professionals managing credit risk.Access Channels
Credit Benchmark offers multiple access channels to ensure flexibility and ease of use:Web Application
This platform allows for portfolio monitoring and alerting, analysis of industry or geographical trends, and entity-level drill-downs for descriptive analytics and peer comparisons.Excel Add-In
Users can incorporate consensus data into their existing spreadsheets and models using pre-built templates and a convenient graphical interface to create and edit filters.Datafeed
A comprehensive flat file format is available, which can be easily integrated into users’ own systems using their internal identifiers and reference data.Direct/API
The web services Enterprise API provides a structured data model and a high-performance delivery mechanism to support in-house built solutions.Third Parties
Data is also accessible through third-party channels, including the Bloomberg Terminal and Enterprise Data License, as well as data marketplaces like AWS Marketplace.Ease of Use
The interface is designed to be intuitive and easy to use, even for non-technical users. Here are some key features:User-Friendly Interface
The web application and Excel add-in are built with a fluent graphical interface, making it easy for users to query the database and analyze data.Pre-built Templates
The Excel add-in includes pre-built templates, which simplify the process of incorporating consensus data into existing models.Alerting and Monitoring
The web application allows for portfolio monitoring and alerting, enabling users to stay updated on credit risk trends and changes.Overall User Experience
The overall user experience is focused on providing clear and actionable insights:Analytical Tools
Credit Benchmark offers tools such as Correlation Matrices, Credit Transition Matrices, and Watch List & Surveillance, which help in monitoring, managing, and mitigating credit risk.Entity-Level Insights
Users can access entity-level Credit Consensus Ratings and detailed analytics, which provide a comprehensive view of credit risk at both the entity and industry levels.Industry and Sector Analysis
With tools like Credit Risk IQ, users can access thousands of industry- and sector-level reports, tracking credit risk across various industries and sectors. In summary, Credit Benchmark’s user interface is designed to be intuitive, flexible, and highly functional, ensuring that finance professionals can efficiently manage and analyze credit risk data. CreditBenchmark - Key Features and Functionality
Credit Benchmark Overview
Credit Benchmark is a prominent provider of credit risk data and analytics, integrating advanced features and AI-driven functionalities to enhance credit risk management and investment decisions. Here are the main features and how they work:Credit Consensus Ratings
Credit Benchmark provides Credit Consensus Ratings, which are derived from the anonymized and aggregated internal risk views of over 40 leading banks. These ratings offer a unique measure of creditworthiness for 40,000 entities, mostly unrated by the top three rating agencies. This data is updated twice monthly and provides dynamic coverage of public and private companies across emerging and developed markets.Benefits
- Independent Perspective: These ratings provide an independent, real-world view of credit risk, compiled from multiple banks.
- Comprehensive Coverage: 90% of the entities covered are unrated by major rating agencies, filling a significant gap in credit risk assessment.
- Enhanced Risk Management: This data enhances existing risk management processes, including counterparty, supply chain, and enterprise risk management.
Bond and Loan Rating Assessments
Credit Benchmark, in partnership with Bloomberg, offers rating assessments for bonds and loans issued by the 40,000 entities with Credit Consensus Ratings. This service combines Credit Benchmark’s consensus with Bloomberg’s security reference dataset to create security-level rating assessments for approximately 130,000 bonds and loans.Benefits
- Detailed Assessments: These assessments provide detailed credit risk evaluations at the security level.
- Regulatory Compliance: They support optimization of regulatory capital requirements and improve collateral eligibility.
- Investment Risk Management: The assessments are useful in investment risk management reporting and governance.
Integration with Bloomberg Terminal
Credit Benchmark data can be seamlessly integrated into the Bloomberg Terminal, allowing users to overlay this data against their portfolios. This integration supports various risk management and investment management use cases, including fixed income screens and macro credit insights on industries and sectors.Benefits
- Streamlined Workflows: The data is easily accessible through standard Bloomberg functions, enhancing existing portfolio monitoring and analysis workflows.
- Enhanced Decision-Making: It helps in identifying new investment opportunities and assessing whether certain indices are overbought or oversold relative to their credit profiles.
Credit Risk IQ
Credit Benchmark has launched Credit Risk IQ, an online portal providing over 5,000 free monthly industry- and sector-level reports. These reports include credit indices, credit rating transition matrices, correlation matrices, and credit distributions. This tool helps market participants identify and manage risk and capital more effectively.Benefits
- Industry-Specific Insights: Provides in-depth analyses on evolving macro credit trends across thousands of industries and sectors.
- Forward-Looking Data: The analytics are forward-looking, indicating where industry-specific credit risk is heading.
- Differentiated Views: Offers differentiated and unbiased views on credit risk, filling a significant void in the market.
AI Integration
While the primary features of Credit Benchmark are based on aggregated and anonymized risk data from multiple banks, AI plays a crucial role in enhancing the accuracy and efficiency of these services. Here’s how AI is integrated:- Data Analysis and Insights: AI helps in analyzing vast amounts of data from various sources, including internal risk views and market indicators, to generate precise credit scores and risk assessments.
- Real-Time Monitoring: AI enables real-time monitoring of financial activities and portfolio trends, allowing for early warning signs of potential defaults or changes in credit risks.
- Automated Decision-Making: AI automates credit risk assessment, facilitating instant credit decisions and improving operational efficiency.
- Fraud Detection: AI algorithms detect suspicious patterns and anomalies, helping to mitigate the risk of fraudulent activities in credit applications and transactions.
Benefits of AI Integration
- Improved Accuracy: AI enhances the accuracy of credit risk assessments by analyzing extensive datasets and identifying patterns that might be overlooked by traditional methods.
- Efficiency Gains: AI automates many processes, saving time and resources for financial institutions.
- Proactive Risk Management: AI generates early warning signals for credit risk, enabling proactive and strategic decision-making in risk management and portfolio analysis.
CreditBenchmark - Performance and Accuracy
Evaluating the Performance and Accuracy of Credit Benchmark
Data Quality and Coverage
Credit Benchmark stands out for its comprehensive coverage of credit risk data. It aggregates the internal risk views of around 40 of the world’s largest banks, almost half of which are Global Systemically Important Banks (GSIBs).- This consensus data covers over 110,000 individual obligors, many of which do not have external ratings, thereby filling a significant gap left by traditional rating agencies.
Accuracy and Predictive Power
The accuracy of Credit Benchmark’s data is enhanced by its dynamic nature; the consensus ratings are refreshed twice a month, providing real-time indicators of potential credit risk changes.- The use of a sophisticated purpose-built mapping engine ensures that risk data is accurately processed and comparable across different entities.
Methodological Soundness
Credit Benchmark’s methodology is transparent and well-documented. The data is collected and processed in a way that ensures independence from issuer-pays conflicts and bank biases, which can affect the reliability of the ratings.- The methodology involves combining risk views from multiple major banks, which helps in reducing individual biases and improving the overall accuracy of the credit consensus ratings.
Performance Measurement
The performance of Credit Benchmark’s credit risk management solutions is evaluated through various metrics. For instance, the ability to identify, quantify, and monitor credit risk effectively is a key performance indicator.- The solution has been shown to enhance portfolio monitoring and surveillance, allowing banks to flag negative or positive movements and allocate resources more efficiently.
Limitations and Areas for Improvement
Despite its strengths, there are several challenges and limitations associated with credit benchmarking in general, which may also apply to Credit Benchmark:- Data Quality and Availability: The accuracy and reliability of the benchmarking results can be affected by data quality issues such as errors, biases, or inconsistencies. Additionally, data availability can be limited by access, cost, or regulatory constraints.
- Methodological Complexity: Different methodologies used by various banks can affect the comparability and applicability of the credit benchmarking results. Ensuring that the methodologies are consistent and transparent is crucial.
- Customizability and Granularity: While Credit Benchmark offers a high level of granularity and customizability, ensuring that the data can be tailored to specific user needs without compromising its integrity is an ongoing challenge.
Regulatory Compliance
Credit Benchmark’s data and analytics are designed to meet stringent regulatory requirements. For example, the collaboration with Oliver Wyman on IRB Nexus ensures that the data is robust and compliant with internal validation and supervisory requirements.- This compliance is critical for banks to demonstrate the robustness of their rating scorecards and calibration targets, which is a key area where Credit Benchmark’s solutions add significant value.
Conclusion
In summary, Credit Benchmark’s performance and accuracy are supported by its comprehensive data coverage, transparent methodology, and real-time updates. However, ongoing attention to data quality, methodological consistency, and regulatory compliance is necessary to maintain and improve its effectiveness. CreditBenchmark - Pricing and Plans
Pricing Structure of Credit Benchmark
Subscription Model
Credit Benchmark does not offer a free plan in the traditional sense, but it does provide a trial option. Here are the details:Trial Access
- Credit Benchmark offers a 30-day trial access to their Credit Consensus Ratings data. This trial allows users to explore the features and data provided by Credit Benchmark.
Paid Subscriptions
The primary pricing model is based on subscriptions:Monthly Subscription
- A one-month subscription is available, priced at $5,000. This subscription grants access to Credit Benchmark’s Credit Consensus Ratings data on Financials, Corporates, and Sovereigns.
Features
Here are the key features included in the paid subscription:Credit Consensus Ratings
- Derived from contributed risk views of over 40 of the world’s leading financial institutions, providing an independent and real-world perspective of credit risk.
Data Coverage
- Consensus Ratings and Analytics on over 75,000 entities globally, with 90% of these entities not rated by traditional rating agencies.
Additional Analytics
- Credit indices that track credit risk across various industries, sectors, and sub-sectors.
- Credit rating transition matrices to track and project credit rating migrations.
- Correlation matrices highlighting the relationship across various industries.
- Credit distributions tracking the ratings of entities within different sectors over time.
CreditBenchmark - Integration and Compatibility
Credit Benchmark Integration Overview
Credit Benchmark integrates seamlessly with various financial tools and platforms, ensuring broad compatibility and ease of use for its users.Integration with Bloomberg
One of the key integrations is with the Bloomberg Terminal and Enterprise Data License. Credit Benchmark data, including Credit Consensus Ratings, probabilities of default, and advanced analytics, can be accessed directly through the Bloomberg Terminal. This integration allows users to overlay Credit Benchmark data with their existing portfolio monitoring, analysis, and decision-making workflows. The data is accessible via standard Bloomberg functions such as Search, Worksheets, Launchpad, Excel API, and CRPR, making it easy to incorporate into existing workflows.Security-Level Ratings Assessments
Credit Benchmark, in partnership with Bloomberg, also offers rating assessments for bonds and loans issued by over 40,000 entities. These assessments combine Credit Benchmark’s Credit Consensus Ratings with Bloomberg’s security reference dataset, providing security-level rating assessments for approximately 130,000 bonds and loans. This combined data is distributed through the Bloomberg platform, ensuring comprehensive coverage and ease of access.Third-Party Channels and Data Marketplaces
In addition to Bloomberg, Credit Benchmark data is available through other third-party channels, including Enterprise Data License services and data marketplaces like AWS Marketplace. This broad availability ensures that users can access Credit Benchmark’s credit risk data and analytics from multiple platforms, depending on their specific needs and existing infrastructure.Collaboration with Trading Apps
Credit Benchmark has also partnered with Trading Apps, a fintech innovator, to integrate its Credit Consensus Ratings into the TA.Link messaging platform. This integration streamlines processes such as agent lending disclosures (ALD), know-your-client (KYC), and client onboarding within the securities finance industry. By embedding Credit Benchmark’s data into these workflows, users can accelerate client onboarding, reduce risk, and enhance market profitability through automation and simplicity.Analytical Tools and Access
Credit Benchmark’s products and services can be accessed through various analytical tools, including correlation matrices, credit transition matrices, and watch list surveillance. These tools help risk professionals monitor, manage, and mitigate their risk more effectively and efficiently. The data is updated twice monthly, providing dynamic and unparalleled coverage of public and private companies.Conclusion
Overall, Credit Benchmark’s integration with multiple platforms and tools ensures that its credit risk data and analytics are widely accessible and can be seamlessly incorporated into various financial workflows, enhancing risk management and investment decision-making processes. CreditBenchmark - Customer Support and Resources
Contacting Customer Support
For any product-related support, you can contact Credit Benchmark through their designated telephone numbers. If you are in the UK, you can call 44 (0)333 200 5853, and if you are in the US, you can call 1 866 635 4189.
Product Support Form
In addition to phone support, you can also fill out a contact form available on their website to arrange a demo or request assistance. This form allows you to provide details about your inquiry, making it easier for the support team to address your needs.
Additional Resources
Credit Benchmark offers several resources to help users make the most of their services:
Credit Risk IQ
Credit Benchmark has launched Credit Risk IQ, an online portal that provides over 5,000 free monthly industry- and sector-level reports. These reports include credit indices, credit rating transition matrices, correlation matrices, and credit distributions. This resource helps users better identify and manage credit risk across various industries and sectors.
Data and Analytics
The company provides a comprehensive dataset that includes entity-level Credit Consensus Ratings and analytics. This data is aggregated from more than 40 financial institutions globally and is updated twice monthly. The insights from this data are trusted by major financial institutions to benchmark their internal credit risk analysis.
Partnership with Bloomberg
Credit Benchmark also offers rating assessments for bonds and loans through a partnership with Bloomberg. This service combines Credit Benchmark’s Consensus Ratings with Bloomberg’s security reference dataset to create security-level rating assessments for a large number of bonds and loans.
By utilizing these resources and support options, users can gain valuable insights into credit risk and manage their financial decisions more effectively.
CreditBenchmark - Pros and Cons
Advantages of Credit Benchmark
Credit Benchmark offers several significant advantages in the finance tools and AI-driven product category:Comprehensive Credit Risk Data
Credit Benchmark aggregates internal credit risk views from over 40 leading global financial institutions, including many Global Systemically Important Banks (GSIBs). This collective intelligence, contributed by more than 20,000 credit analysts, provides a unique and comprehensive view of credit risk that is neither an agency rating nor a model output.Enhanced Credit Decision Making
By providing Credit Consensus Ratings, Indices, and Analytics, Credit Benchmark helps users make informed and efficient credit decisions. These tools facilitate pricing, allocation, and diversification strategies, and offer insights into credit trends and distributions across various countries, industries, and sectors.Increased Transparency and Accountability
Credit Benchmark enhances credit transparency and accountability by enabling clear and consistent communication and reporting of credit information. This transparency supports regulatory compliance and governance requirements, making it easier for financial institutions to meet their regulatory obligations.Early Warning Systems and Risk Management
The platform offers tools like Watch List & Surveillance, Correlation Matrices, and Credit Transition Matrices, which help in monitoring, managing, and mitigating credit risk. The data can flag significant variance in Probability of Default (PD) and Loss Given Default (LGD) estimates, providing early warnings of potential downgrades and trends towards default.Global Coverage and Granularity
Credit Benchmark provides coverage of over 100,000 counterparties, with 90% of them being otherwise unrated. This extensive dataset includes macro-level risk indicators and security-level rating assessments for bonds and loans, offering a detailed and granular view of credit risk.Disadvantages of Credit Benchmark
While Credit Benchmark offers numerous benefits, there are also some limitations to consider:Data Quality and Availability
The accuracy and reliability of Credit Benchmark’s results depend on the availability and quality of the data. Data gaps, inconsistencies, and errors can affect the outcomes, and the variability in data sources and methodologies can impact the comparability of the results.Methodological Variability
The methodologies used in credit benchmarking can be complex and variable, which may affect the comparability and applicability of the results. Different sources and types of credit benchmarks may use different methodologies, requiring careful consideration when comparing them.Regulatory and Compliance Challenges
While Credit Benchmark helps with regulatory compliance, the process of using its data to meet regulatory requirements, such as those for Internal Ratings-Based (IRB) models, can be challenging. Ensuring that the data is representative and meets the supervisory requirements is crucial but can be time-consuming and complex.Dependence on Contributions
The quality and comprehensiveness of Credit Benchmark’s data rely on the contributions from participating financial institutions. Any changes in the number or quality of contributors could impact the overall value of the data provided. By considering these advantages and disadvantages, users can make well-informed decisions about whether and how to use Credit Benchmark’s products and services to manage their credit risk effectively. CreditBenchmark - Comparison with Competitors
When Comparing Credit Benchmark to Other AI-Driven Finance Tools
When comparing Credit Benchmark to other AI-driven finance tools in the credit risk and financial data category, several key aspects and alternatives come into focus.Unique Features of Credit Benchmark
Credit Benchmark stands out for its unique approach to credit risk assessment. Here are some of its distinctive features:Credit Consensus Ratings
These ratings are based on the collective views of major financial institutions, rather than the traditional ‘issuer pays model’. This provides a more accurate and unbiased view of credit risk.Entity-Level Risk
Credit Benchmark offers entity-level Credit Consensus Ratings for over 100,000 counterparts and borrowers globally, along with detailed analytical tools such as correlation matrices and credit transition matrices.Partnership with Bloomberg
Credit Benchmark combines its ratings with Bloomberg’s security reference dataset to provide security-level rating assessments for bonds and loans, enhancing the granularity and reliability of the data.Competitors and Alternatives
Several competitors and alternatives offer similar or complementary services:InfoTrie
InfoTrie is a global data intelligence leader that provides alternative datasets on areas such as e-commerce, SEC filings, and sentiment analysis. While it doesn’t focus specifically on credit risk, it offers a broad range of financial and market data that can be useful for comprehensive risk assessment.Exchange Data International (EDI)
EDI provides high-quality, affordable financial data customized to fit specific operational requirements. Their data includes corporate actions, dividends, and other financial metrics, which can be used in conjunction with credit risk tools.Cbonds
Cbonds is a global data provider specializing in the fixed income market. It offers timely and accurate data on bonds and other fixed income instruments, which can be complementary to Credit Benchmark’s credit risk assessments.Intrinio
Intrinio delivers high-quality financial data through cutting-edge tools, catering to financial institutions, startups, and universities. Their data can be integrated with credit risk tools to provide a more comprehensive financial analysis.Key Differences
Data Source and Methodology
Credit Benchmark’s use of collective views from major financial institutions sets it apart from competitors that may rely on different data sources or methodologies.Integration and Distribution
The partnership with Bloomberg for distribution and the integration with other financial data platforms make Credit Benchmark’s data highly accessible and usable within existing financial workflows.Scope of Coverage
While competitors like Cbonds and Intrinio provide extensive financial data, Credit Benchmark’s focus on credit consensus ratings and entity-level risk assessments makes it particularly valuable for credit risk management.Conclusion
Credit Benchmark’s unique features, such as its credit consensus ratings and integration with Bloomberg, position it as a strong tool for credit risk assessment. However, depending on the specific needs of an organization, alternatives like InfoTrie, EDI, Cbonds, and Intrinio may offer complementary or broader financial data that can enhance overall financial analysis and risk management. CreditBenchmark - Frequently Asked Questions
Frequently Asked Questions about Credit Benchmark
What is Credit Benchmark and what does it do?
Credit Benchmark is a financial data and analytics company that collects, aggregates, and anonymizes internal credit risk views from over 40 of the world’s leading financial institutions. These views are used to generate Credit Consensus Ratings and Analytics, which provide an independent measure of credit risk for rated and unrated entities globally.How does Credit Benchmark collect its data?
Credit Benchmark collects data from the internal credit risk assessments of more than 40 leading global financial institutions, almost half of which are Global Systemically Important Banks (GSIBs). This data is anonymized, aggregated, and published twice monthly in the form of Credit Consensus Ratings and Credit Indices.What are the benefits of using Credit Benchmark’s credit consensus data?
Using Credit Benchmark’s data helps users measure, monitor, and enhance credit risk management. It provides a comprehensive and comparative view of credit opportunities and challenges, improves credit decision-making, and increases credit transparency and accountability. This data also supports regulatory compliance and governance requirements.How does Credit Benchmark’s approach differ from traditional credit rating agencies?
Credit Benchmark’s approach is distinct because it is not based on the ‘issuer pays model’ used by traditional rating agencies. Instead, it reflects the views of financial institutions that have a direct stake in the creditworthiness of the entities they assess. This provides a real-world measure of risk that is neither an agency rating nor a model output.What types of products and tools does Credit Benchmark offer?
Credit Benchmark offers a range of products, including Credit Consensus Ratings, Credit Indices, and various analytical tools. These include entity-level risk assessments, security-level rating assessments for bonds and loans, correlation matrices, credit transition matrices, and watch list surveillance. Additionally, they provide monthly Credit Risk IQ reports that analyze default risk across multiple sectors and geographies.How can users access Credit Benchmark’s data and tools?
Users can access Credit Benchmark’s data and tools through various channels, including the Bloomberg Terminal, Enterprise Data License, and data marketplaces like AWS Marketplace. The company also offers a full service demo to help risk professionals understand how to use their products effectively.What is the scope of coverage provided by Credit Benchmark?
Credit Benchmark provides coverage for over 100,000 counterparts and borrowers globally, across more than 170 countries and close to 200 industries, sectors, and sub-sectors. This includes rated and unrated, as well as privately and publicly owned entities.How often is the data updated?
The credit risk data contributed by the financial institutions is aggregated and published twice monthly in the form of Credit Consensus Ratings and Credit Indices.What is the significance of Credit Benchmark’s Credit Indices?
Credit Benchmark’s Credit Indices are macro-level risk indicators that allow users to compare credit trends and distributions across various industries and geographies. These indices reflect the real-world risk views of experienced risk takers and help investment professionals construct precise correlation and transition matrices.How transparent is Credit Benchmark’s data and methodology?
Credit Benchmark’s data is transparent, with clear disclosure of the data sources, methodologies, and any adjustments made over time. This transparency allows users to assess the credibility of the data and make informed decisions.