IHS Markit has confirmed that it has teamed up with Credit Benchmark in order to use the company’s credit risk analytics tools for its securities financing solution, which handles performance measurement and reporting for multinational lending platforms.
Mark C. Faulkner, co-founder at Credit Benchmark, noted that Consensus credit analytics brings greater transparency to the securities lending sector for all parties, including owners, agents and borrowers.
Faulkner says he’s looking forward to returning to the securities finance sector with this service focused on assisting industry participants in “knowing their counterparts’ creditworthiness.”
The firm’s securities finance performance measurement software allows companies to look at their returns on their portfolios against several other similar investments. The software tool, along with Credit Benchmark’s consensus analytics tools, will allow users to independently evaluate the risk-return exposure based on the credit-worthiness and liquidity of counterparty assets.
Paul Wilson, MD and global head of Securities Finance at IHS Markit, said that the partnership with Credit Benchmark helps create the sector’s first solution for managing counterparty credit risk “in step with securities lending inventory and loan activity.”
Wilson noted that the addition of HQLA reference data and inventory and investment portfolio stability metrics to the firm’s platform, and the inclusion of credit risk analytics tools will assist the company in “optimizing its use of capital.”
Credit Benchmark is a financial data firm that offers consensus credit risk assessments for private corporations and financial institutions. The firm’s credit risk data is obtained from the databases of 40 different financial institutions.
IHS Markit has also teamed up with Yieldbroker, a tier-1 regulated digital trading platform for debt securities and derivatives (for Australia and New Zealand-based users).
