Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Data Services has launched ICE Credit Risk, an innovative new suite of analytics.
These analytics measure credit risk by combining daily market credit risk analytics with monthly fundamental credit views from financial institutions. Consensus estimates will be provided on an exclusive basis by Credit Benchmark, a leader in consensus-based credit analytics.
“The current approaches in the market used to measure credit risk are either slow to respond to market activity, do not measure risk at a security level or do not take into account more fundamental reviews of credit risk,” said Lynn Martin, President & COO of ICE Data Services. “As such, market participants lack a single, up-to-date view that combines fundamental company analysis with current market data including liquidity scores, market reflective spreads and related price analytics. Through our collaboration with Credit Benchmark, we’re able to quickly launch an innovative new product that will provide more transparency and new risk management tools to the bond market.”
“ICE’s expertise in delivering rich fixed income analytics to the market makes them a natural collaborator with Credit Benchmark,” said William Haney, Credit Benchmark’s CEO. “Our consensus data will help power the new ICE Credit Risk offering further extending the use of our network-sourced analytics. Given where credit markets are trending, this launch is well timed and gives investors an important edge.”
ICE Credit Risk uses innovative sources of information, such as ICE’s Liquidity IndicatorsTM, evaluated pricing, analytics and reference data on approximately 2.7 million fixed income securities, and combines it with Credit Benchmark’s consensus credit information, which derive credit risk insights from a contributed data model that harnesses the collective intelligence of the world’s leading financial institutions that are taking on credit risk.
By bringing these factors together, ICE Credit Risk provides daily credit risk metrics for global corporate bonds at a security level enabling faster signals for monitoring early deterioration or improvement of credit. It also establishes daily risk spread premiums and offers a credit perspective on both publicly rated and non-rated bonds, which can help expand the universe of investable securities.
This new service complements the existing broad range of data solutions that ICE Data Services provides, including award-winning pricing and analytics, indices and exchange data via secure, flexible connections. These services help customers address their investing, trading, compliance and risk management requirements across a broad range of asset classes.