Brad Foster, global head of Enterprise Data Content, Bloomberg.
Bloomberg is offering its Market-Implied Probability of Default (MIPD) product, a market-driven creditworthiness indicator, to both Enterprise Data and Bloomberg Terminal clients globally. MIPD is designed to help clients incorporate creditworthiness metrics within their existing workflows to support 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 credit default swap (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 daily credit risk assessment that incorporates data from Bloomberg’s evaluated pricing service (BVAL), to estimate fixed income market sentiment and 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, helping clients to make risk and investment decisions.
It is available to Bloomberg Data License clients, as well as on the Bloomberg Terminal through a new dedicated screen accessed via MIPD, W 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.
©Markets Media Europe, 2021
TOP OF PAGE
