The Financial Counterpart Monitor from Credit Benchmark provides a unique analysis of the changing creditworthiness of financial institutions.
Credit Benchmark covers 10,610 Financial entities, 82% of which are not rated by a credit rating agency. Financials showed neutral credit quality this month, with an equal amount of credit improvements to deteriorations.
Central Banks (of which we cover 99 entities, 93% of which are unrated) showed the strongest ratio of credit improvement this month, with four improvements to each deterioration. EMEA Banks (539, 55% unrated) had a positive ratio of 3:1 improvements to deteriorations, and the GSIB group (30 banks) showed a ratio of 2:1 improvements/deteriorations. The group with the largest bias towards net credit deterioration this month was North America Banks (296, 66% unrated), with a negative ratio of 1:1.8.
Of the Intermediaries, Prime Brokers (24 entities, 8% unrated) showed a strong trend towards credit improvement, with an improvements to deteriorations ratio of 4:1. Credit movement was otherwise fairly mild, with CCPs (44, 76% unrated) showing the largest net credit deterioration with a ratio of 1:1.5.
Buy Side firms remained neutral on the whole, with only two instances of net credit deterioration. Asset Managers (969, 92% unrated) had a negative ratio of 1:1.3 improvements to deteriorations, while Sovereign Wealth Funds (36, 92% unrated) showed a ratio of 1:1.5.
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.
