IHS Markit adds credit risk analytics to securities finance platform

IHS Markit will use Credit Benchmark’s credit risk analytics to offer additional performance measurement and reporting services.

By Joe Parsons

IHS Markit has struck a collaboration with risk assessment data provider Credit Benchmark to add new analytics capabilities to its securities finance platform.

The use of Credit Benchmark’s credit risk analytics will enable IHS Markit to offer additional performance measurement and reporting services for global lending programmes.

“Our collaboration with Credit Benchmark creates the industry’s first solution for managing counterparty credit risk in step with securities lending inventory and loan activity,” said Paul Wilson, managing director and global head of securities finance at IHS Markit.

“Following the addition of HQLA reference data and inventory and portfolio stability metrics to our platform, the inclusion of credit risk analytics will help firms optimise their use of capital.”

The IHS Markit securities finance performance measurement tool enables firms to compare returns on portfolio assets against a variety of customisable peer groups. It can also independently evaluate a risk-return exposure based on the credit quality and liquidity of counterparty assets.

“Consensus credit analytics brings new and much-needed transparency to the entire securities lending landscape across beneficial owners, agents and principal borrowers,” added Mark Faulkner, co-founder of Credit Benchmark.

Last year, IHS Markit deployed a number of upgrades to its securities finance platform, which included wider coverage for the Japanese market, an updated US forecasting model, and new tool enabling lenders and borrowers to compare the performance of their peers and rivals.

The IHS Markit Securities Finance platform tracks more than $25 trillion of global securities in lending programmes from over 20,000 institutional funds.