BlackRock, Thomson Reuters to Provide Fixed-Income Analytics for Buy Side
BlackRock and Thomson Reuters say the new service will save clients, including hedge funds, asset managers, and sovereign wealth funds, among others, the work of creating an analytics process internally. The service will be provided to institutional clients via Thomson Reuters’ DataScope portals and built with BlackRock's Aladdin infrastructure.
According to BST's sibling publication Inside Market Data, distribution via Thomson Reuters will be updated daily, and comprise key security-level market risk parameters including nominal yield, nominal spread, option-adjusted spread and modified duration for a variety of mortgage and mortgage-backed securities (MBSs), convertible debt and bonds.
“We recognize that there’s a whole segment in the marketplace that doesn’t want an entire platform and the whole suite of analytics we provide, but still need certain basic analytics metrics and risk metrics,” Robert Goldstein, senior managing director and head of BlackRock’s institutional business and BlackRock Solutions, tells Inside Market Data.
The companies say BlackRock's reputation in the fixed-income space, combined with growing requirements around scenario analysis and Monte Carlo simulations for risk management and regulatory compliance, will bolster demand for the service among smaller buy-side firms that can't put together the information for those models internally, or at cost.
"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," says Goldstein.
The solution comes as BlackRock continues a push to leverage its expertise, and burgeoning liquidity, in debt instruments whose secondary markets are closely influenced by derivatives. A flurry of publicity surrounded the announcement of a matching engine for corporate bonds built into BlackRock’s Aladdin earlier this summer.
BST analysis predicts BlackRock will seek to monetize further internal platforms in the near term as ascendant buy-side institutions continue to employ technology to take advantage of uncertainty surrounding the large sell-side institutions' business models. Whether BlackRock does so independently, or as in this case through a tie-up with an established provider like Thomson Reuters, will be something to closely watch going forward.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
GenAI could connect ‘constellation’ of vital information technologies
At WFIC, Six Group’s Marion Leslie highlighted the opportunities and risks that the technology holds.
Why can’t we be friends?
The ABA vs most every regulator. LSEG vs BBG. AI vs SaaS. Buy vs build. Lots of drama in the capital markets.
DORA will change the buy vs. build debate… maybe
Waters Wrap: With DORA’s deadline looming, trading firms are having to reassess their long-term tech strategies. Anthony wonders if that means more building and less buying.
JSE rolls out exchange data to cloud Marketplace, built with DataBP
The move—part of a broader cloud migration at the exchange—allows financial firms to connect and subscribe to JSE news, market data, and analytics via the cloud.
The SEC needs a hand with artificial intelligence
The SEC wants to take a tough stance on AI, but it has a talent problem… or a marketing problem. Or both…
This Week: Appital adds to book-building tool; SmartStream; TS Imagine and more
A summary of the latest financial technology news.
This Week: Startup Skyfire launches payment network for AI agents; State Street; SteelEye and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: Standard Chartered’s Brian O’Neill
Brian O’Neill from Standard Chartered joins the podcast to discuss cloud strategy, costs, and resiliency.