A Bloomberg Professional Services Offering
Bloomberg Terminal
MARS Credit Risk
Providing actionable obligor and obligation credit analytics.
Risk & Valuations
Multiple financial stresses have continued to alter the ways that firms think about credit risk.
Widening spreads and elevated volatility since mid-February 2020 have substantially increased pressures across credit markets.
With the global economic downturn, continuing COVID-19 concerns and impacts and an oil price war, it is critical to identify signs
of stress that may impact a borrower’s capacity to repay debt, or a customer or supplier’s capacity to meet its obligations.
Bloomberg’s analytical solution: Use Cases and Workflows
MARS Credit Risk Trading and Portfolio Management
MARS Credit Risk leverages Bloomberg’s extensive • Portfolio construction
risk analytics and rich data sets to provide obligor and • Underwriting and syndication
obligation-level credit analytics that incorporate both
• Outlier identification
market and fundamental information and:
• Credit screening and monitoring
• D
elivers a full term structure of default probabilities • Credit benchmarking vs. index or portfolio
and model-implied credit default swap spreads
• P
roduces an early warning signal about an obligor’s Risk Management
credit quality (and relevant obligations, such as bonds • Counterparty risk management
and loans) • Risk profile assessment
• E
valuates the potential Loss Given Default and Recovery • Credit risk monitoring and escalation
for all covered obligations • Concentration risk
• Assesses a large universe of obligors and obligations • Limits management
• Integrates with MARS Risk Management products, • Model validation / benchmarking
to provide a robust risk management solution
Finance / Treasury
• Evaluate counterparties
Methodology and Approach:
• Manage supplier relationships
How are these analytics produced?
• Manage customer relationships
MARS Credit Risk utilizes state-of-the-art credit models • Evaluate loss reserves
and a wealth of data to provide extensive coverage at
obligor and obligation levels:
• L
everages credit risk models to calculate distance to
default and probability of default and model-implied
CDS spreads, for public and private firms and even
those firms not in Bloomberg’s ecosystem
• Incorporates market and fundamental information at
the same time to enable a detailed and unbiased current
and point-in-time future view of a firm’s creditworthiness
• P
rovides an enhanced and unbiased view on the
potential Loss Given Default and Recovery , informed
by evaluation of each firm and historical experiences
across each region and sector.
Delivery Channels
MARS Credit Risk analytics are available for enterprise use via:
• M
ARS UI — For customers who use the Bloomberg and desire to review specific
analytics for specific obligors and/or obligations
• M
ARS API — For customers who would like to ingest the analytics, to include in firm
workflows and customized reporting. This is available to all customers in a firm,
as long as there is at least one Bloomberg user.
Coverage: Why MARS Credit Risk?
• Global — Coverage of over 385,000 companies and millions of obligations, across
over 100 countries globally, updated daily.
• Transparent — Access to multiple analytics, with rigorous market methodologies
• Predictive — Testing shows accuracy ratios of 90%+ over a long timeframe, meaning
signals are unlikely to be swayed by market idiosyncrasies, e.g. illiquidity, or even
lack of market
• C
omprehensive — Multiple analytics available in one place, at the same time,
containing the costs while efficiently delivering these analytics timely.
Region Private Public Grand total
Africa 251 1,699 1,950
Asia 26,777 32,587 59,364
Eastern Europe 17,353 5,447 22,800
Latin America 3,614 1,768 5,382
Middle East 323 2,393 2,716
North America 64,255 20,277 84,532
Western Europe 195,928 12,625 208,553
Grand total 308,501 76,796 385,297
As of 29 January 2020
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