Welcome to the seventh part of our Credit Data Strategy blog series.
Based directly on conversations with our clients and other market participants, this special blog series will spotlight how the credit market is leveraging technology and automation to unlock greater performance. Whether your firm has already implemented a credit data strategy or is yet to begin, this series will help you benchmark your practices and offer resources and advice on how to succeed in an ever-shifting landscape.
In our fifth chapter (Advantages of implementing a credit data strategy), we listed a variety of benefits to implementing a credit data strategy. In this section, to help paint the picture for what’s possible, we wanted to highlight five examples of credit data implementations by our clients that are indicative of where the market is headed in the near-term.
1. Global Investment Bank
A global investment bank has built an internal credit metrics dashboard for its cross-geography, cross-sector research team to collaborate real-time on market comparables and peer analysis utilizing our API. The project has eliminated time spent by analysts manually inputting numbers into their systems each quarter and increased analyst coordination on market analysis across the globe.
Gains include: increased idea generation, expanded market coverage, faster reaction time, productivity / quality-of-life enhancements, and enhanced cross-team collaboration.
2. Global Hedge Fund
A global hedge fund has implemented automated credit models across European and US markets that auto-refresh post-earnings, dramatically reducing the time it takes analysts to update their view, using our Excel Add-in. The analysts always know we have them covered on first cut analysis, so they can reallocate their available capacity to deeper-dive work and differentiated idea generation.
Gains include: improved decision-making, expanded market coverage, faster reaction time, productivity / quality-of-life enhancements, and staffing flexibility / reduced hiring pressures.
3. Quantitative Hedge Fund
A quantitative hedge fund is managing its trading strategy with a systematic overlay on top of its existing discretionary security selection process, populating its internal database via our API. The client says it would be unable to apply its traditional methodology in the credit asset class without having access to our data.
Gains include: improved decision-making, more effective risk mitigation, expanded market coverage, faster reaction time, and cost savings.
4. Global Asset Manager
A global asset manager has transitioned away from writing investment memos and is now utilizing screenshares of our models and memos in portfolio review meetings. The PM described this new way of working as
having saved the team a ton of time and made credit monitoring much more
enjoyable for the analysts.
Gains include: improved decision-making, more effective risk mitigation, productivity / quality-of-life enhancements, and enhanced cross-team collaboration.
5. Regional Asset Manager
A regional asset manager utilizes an automated market screener that highlights target opportunities outside of the analyst team’s core coverage, leveraging a combination of our API and Web Application. This team is able to nimbly move around the market finding opportunities despite having a smaller-than-average number of analysts due to its innovative approach to signal catching.
Gains include: increased idea generation, expanded market coverage, faster reaction time, enhanced cross-team collaboration, and staffing flexibility / reduced hiring pressures.
Coming up: Final word from our CEO & Founder
Next week, we conclude our blog series with a word from our CEO & Founder Robert Slater as he gives shares his thoughts on what leading investment firms should expect from a changing market in the years to come.
As always, if you'd like to discuss your own strategy, contact us if we can be of further assistance.