IHS Markit, a world leader in critical information, analytics and solutions, today announced a collaboration with Credit Benchmark in which it will use Credit Benchmark’s credit risk analytics in its Securities Finance platform to offer additional performance measurement and reporting capabilities for global lending programs.
“Consensus credit analytics brings new and much-needed transparency to the entire securities lending landscape across beneficial owners, agents and principal borrowers,” said Mark C. Faulkner, co-founder of Credit Benchmark. “I am delighted to be returning to the securities finance space with this particular service targeted at helping industry participants ‘know your counterparts creditworthiness’ (KYCC).”
“Our collaboration with Credit Benchmark creates the industry’s first solution for managing counterparty credit risk in step with securities lending inventory and loan activity,” said Paul Wilson, managing director and global head of Securities Finance at IHS Markit. “Following the addition of HQLA reference data and inventory and portfolio stability metrics to our platform, the inclusion of credit risk analytics will help firms optimize their use of capital.”
The IHS Markit Securities Finance performance measurement tool enables firms to compare returns on portfolio assets against a variety of customizable peer groups. Enriched with Credit Benchmark consensus analytics, the tool can independently evaluate risk-return exposure based on the credit quality and liquidity of counterparty assets.
Credit Benchmark is the first financial data company to provide consensus credit risk assessments on a global range of corporations, financial institutions, sovereigns and other funds. Its credit risk inputs are sourced from more than 40 of the world’s leading financial institutions, providing a new unique measure of risk.
IHS Markit Securities Finance tracks more than $25 trillion of global securities in lending programs from 20,000-plus institutional funds. The platform includes more than 15 years of historical data on 6 million daily transactions, sourced from leading industry practitioners, such as prime brokers, custodians, asset managers and hedge funds.