Thomson Reuters, the world's leading source of intelligent information for businesses and professionals and BlackRock, Inc., a leader in investment and risk management, today announced an agreement to create and distribute a set of fixed income derived analytics from BlackRock Solutions, which provides risk analytics, investment systems and advisory services.
Performing valuation and risk analysis on complex fixed income instruments can be a costly and time consuming process. Thomson Reuters Fixed Income Derived Analytics powered by BlackRock Solutions meets a real market need as managers continue to contend with the deluge of risk, compliance and cost issues. For many financial institutions, these new derived analytics could save an enormous amount of work and expense compared to the investment and ongoing costs associated with building and managing an analytics process in-house.
These new sophisticated fixed income derived analytics are designed to help institutional asset managers, hedge funds, banks, insurance companies, sovereign wealth funds, corporate treasuries and family offices better validate and manage their fixed income portfolios to mitigate portfolio risk. The new Thomson Reuters Fixed Income Derived Analytics powered by BlackRock Solutions are based on Thomson Reuters security indicative data and prices and leverage BlackRock Solutions' proprietary fixed income models. These highly valued derived analytics will be made available to institutional clients via Thomson Reuters DataScope Select and Thomson Reuters DataScope Onsite.
"This is another chapter in a long and trusted partnership. Combining the best-in-class security data and pricing capabilities of Thomson Reuters with the deep risk management domain expertise of BlackRock, these new fixed income derived analytics are battle-tested and the best in the business." said Robert Goldstein, senior managing director, head of BlackRock's institutional business and BlackRock Solutions. "Using these analytics to manage portfolios, customers should feel confident that they have the most accurate view of the securities and instruments they hold as these are the same derived analytics that BlackRock and our clients use to manage their portfolios."
Sourced using Thomson Reuters DataScope data and pricing, these derived analytics are cre created via BlackRock Solutions analytics infrastructure Aladdin® using best-in-class interest rate, credit, mortgage and risk models - the same models and methodology used by BlackRock and their clients every day.
"The notion of a risk-focused solution being 'battle-tested' in this current environment is certainly one that will be welcomed by buy-side institutions that are being faced with a veritable barrage of transparency requirements from regulators and clients alike." said Virginie O'Shea, data management and post-trade technology analyst at Aite Group. "Firms have to be able to stand behind the decisions being made by their risk departments and provide a full audit trail for pricing and risk data, as well as allowing interested parties to drill-down into that data at a much more granular level than previously."
As a preferred pricing provider to BlackRock, BlackRock Solutions and each of their 160 clients depend on Thomson Reuters security indicative and pricing data to ensure they have the most accurate security data in the market.
"As risk and compliance management becomes an ever more vital component along the asset management spectrum, we are delighted to collaborate with BlackRock Solutions, the industry's leading risk manager, to create these sought after, proprietary fixed income derived analytics," said Neil Masterson, managing director and head of Investors at Thomson Reuters. "Thomson Reuters Fixed Income Derived Analytics powered by BlackRock Solutions supports Thomson Reuters vision to connect and enable the global financial community and represents another step forward in how we are continuously innovating to address the information and risk management needs of asset managers globally."