The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Fitch Solutions Adds Risk and Pricing Benchmarks to Risk and Performance Platform

Against the background of greater regulatory scrutiny of firms’ risk management practices, Fitch Solutions has incorporated new risk and pricing benchmarks into its Fitch Risk and Performance Platform, which was launched in June last year. Jonathan Di Giambattista, senior director at the vendor, indicates the benchmarks, which can be visualised via a new product feature called the Dashboard, are aimed at improving transparency in the notoriously opaque credit default swap (CDS) market.

Di Giambattista explains how the Dashboard will assist firms in this endeavour: “Credit market participants want to know whether an entity’s spread level is being driven by sector concerns or credit quality concerns specific to that entity. By using the pricing benchmarks contained in the Dashboard, market participants can visualise an entity’s spreads in the context of both the total market and similarly rated peers in the same sector, thereby improving decision making of both portfolio and risk managers.”

The Dashboard therefore offers users the ability to plot portfolio entities against a variety of credit risk and price performance benchmarks. It can be used as an early warning and relative performance tool with the provision of historical and on the spot median CDS spread levels by rating category, claims Fitch Solutions.

According to the vendor, this will allow for greater insight into historical and current credit risk pricing curves by region and sector. Users will also be able to visualise differences between peer benchmark and entity prices and filter portfolios for market information such as big price and risk movers. The platform also now makes use of recent Fitch Solutions research, which demonstrates how the degree of notch difference between implied ratings and agency ratings can be predictive of future agency rating actions.

Related content

WEBINAR

Upcoming Webinar: Brexit: Reviewing the regulatory landscape and the data management response

Date: 11 May 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes With Brexit behind us and the UK establishing its own regulatory regime having failed to reach equivalence with the EU, financial firms face challenges of double reporting, uncertainty about UK regulation, and a potential exodus of top talent. The...

BLOG

GoldenSource Ushers Reference and Pricing Data into the Front Office with Quant Workbench

Extracting value from data is a priority for financial institutions as the business looks to increase efficiency, reduce costs, identify new opportunities and gain competitive advantage. Some source in-house tools to improve the quality and accessibility of internal and external data, others look to third-parties for solutions. A new tool from GoldenSource, Quant Workbench, brings...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Corporate Actions Europe 2010

The European corporate actions market could be the stage of some pretty heavy duty discussions regarding standards going forward, particularly with regards to the adoption of both XBRL tagging and ISO 20022 messaging. The region’s issuer community, for one, is not going to be easy to convince of the benefits of XBRL tags, given the...