Significant Risk Transfers and Capital Relief Trades
Credit Consensus Data for Risk Sharing Transactions
Why Credit Benchmark?
Credit Benchmark data can help drive efficiencies and transparency in your risk sharing business
As a result, investors require a higher level of informational transparency than what is currently available in the market to ensure that they invest in portfolios that accurately reflect their risk / return profile.
Credit Benchmark’s consensus data and analytics are increasingly utilized by a growing number of investors and issuing banks for greater trade intelligence as market conditions become more challenging.
Solutions
How we can help your business
Quickly measure the credit risk of a portfolio across publicly rated and unrated obligors, and pinpoint areas of potential concern for further analysis.
Venture into new geographies with the largest global source of credit risk data, benefiting reinsurance solutions by reaching otherwise opaque markets.
Complement issuer-sourced information, putting an issuing bank’s credit view into the context of those of leading global peers with real-world exposures; identify large outliers and systematic bias.
Fill in the gaps in the portfolio on unrated or unknown names, supporting capital relief trades by making trades more efficient and securing appropriate pricing.
Track divergences between Credit Consensus Ratings and credit rating agencies for a more up-to-date view of risk and leverage in pricing meetings, benefiting credit risk transfer strategies.
Enhance investor understanding of the risk profile of undisclosed portfolios with industry, sectoral or geographical risk indices, providing valuable insights for portfolio risk management.
Case Study
The Client
The portfolio management team within a leading European private money management firm, conducting capital relief trades with European banks.
The Challenge
A lack of public ratings, and data staleness for those which were available meant assessing the risk of a new trade was difficult. This was especially true when trying to enter new markets where reliable credit risk data is scarce. These obstacles also made it harder to monitor changes in the risk profile of existing portfolios.
The Solution
Credit Benchmark’s strong coverage on publicly unrated names granted the client confidence to undertake more trades and better monitor their existing portfolio for changes in risk. Noting divergences between Credit Consensus Ratings and traditional agency ratings was important to the client as they considered the bank-sourced consensus view as more trustworthy and up-to-date, and this allowed them leverage in pricing meetings. The provenance of the data based on the internal risk views of over 40 leading global banks also gave them comfort given the fact their trading counterparts are part of a peer group of the same banks providing their risk views to the credit consensus.
In Numbers
Entities with Credit Consensus Ratings
Bond and Loan Rating Assessments, Representing $34+ Trillion Outstanding
Risk Observations Feeding Into Weekly Data Updates
Credit Risk Observations Collected Since Launch in 2015
Industry & Sector Indices
Countries Covered
Major Global Banks Contributing, Almost Half Are GSIBs
Credit Analysts Contributing Risk Views
Of Universe Unrated by Traditional Rating Agencies
Of Corporate Universe Are Private Companies
The Benefits of Consensus Credit Data
Rating the unrated
Unparalleled coverage of public and private issuers; filling the gaps left by traditional ratings agencies.
Independent
Free from “issuer-pays” conflict and any bank bias.
Real-world exposure
Driven by the credit views of >40 of the world’s largest regulated banks, almost half of which are GSIBs.
Identify that entity
Risk data is processed through a sophisticated purpose-built mapping engine.
Dynamic
The consensus is refreshed weekly to provide dynamic indicators of potential credit risk changes.
Alerting and monitoring
Assess risk over the lifetime of a transaction.
Secure reporting
Ease of internal integration within reporting.
Expanding footprint
A unique growing global dataset.
Risk Solutions
Other Solutions
Specialty Credit & Political Risk Insurance
Corporate Treasury
IFRS 9 / CECL Impairment Benchmarking
Securities Finance & Prime Brokerage
Bank Credit Risk Management
Significant Risk Transfer / Capital Relief Trades
Central Counterparty Clearing Houses (CCPs)
Fund Financing
