Bloomberg introduces daily credit risk indicators



Bloomberg today announced that its Implied Market Probability of Default (MIPD) product, a fully market-driven credit indicator, is now available to Enterprise Data and Bloomberg Terminal customers globally.

MIPD allows clients to easily integrate solvency metrics into their existing workflows for a more holistic approach to credit risk management.

“Market participants are generally aware of potential credit problems before official rating downgrades or defaults; and while CDS prices can serve as a proxy, they are often limited with fewer issuers traded and reduced liquidity, ”said Brad Foster, global head of corporate data content at Bloomberg. “By quantifying market sentiment underpinned by BVAL’s rich data sets, MIPD provides a powerful early warning credit rating for a wide range of issuers across the curve that can help investors navigate the changing conditions. market, including issuer-specific news as well as overall market events. “

MIPD provides clients with a highly responsive, transparent daily credit risk assessment that integrates data from BVAL, Bloomberg’s best-in-class pricing service, to proactively estimate fixed income market sentiment and respond quickly changing market and issuer conditions. This solution helps anticipate credit deterioration such as major credit 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 customers, as well as on the Bloomberg terminal via a new dedicated screen accessible through MIPD, W and via the Excel API. The solution includes an implied probability of default for more than 36,000 issuers and several sectors over a period ranging from 1 to 20 years.


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