Bloomberg Unveils New Liquidity Management Tool
- Bloomberg has launched its liquidity risk assessment tool (LQA) that combines the group's data feeds and machine learning.
Bloomberg has unveiled a new Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term risk assessment tool (LQA), which aggregates its comprehensive data capabilities with machine learning techniques in a bid to ascertain what factors directly influence liquidity, according to a Bloomberg statement.
LQA is derived from two pillars: Bloomberg’s data streams and quantitative models, as well as the application of machine learning techniques. The group’s foray into liquidity management is important for a host of venues and both retail and institutional players, given the sometimes less than transparent nature of certain markets, i.e. fixed income, among others.
In particular, LQA utilizes such methods as machine learning techniques and cluster analysis to help identify and leverage transaction data as well as assist in liquidity risk analyses. As opposed to other liquidity assessment tools, LQA’s reliance on machine learning garners a more extensive scope and analysis by which liquidity can be measured. Bloomberg’s LQA is also compatible across all asset classes.
The new tool caters to risk managers, portfolio managers, traders, and compliance officers. The genesis for the launch of the device has its roots in the US financial crisis in 2008, in which a panel of regulators scrutinized the quality and effectiveness of risk assessment processes and liquidity standards.
According to Ilaria Vigano, Head of the Regulatory and Accounting Products Group at Bloomberg, in a recent statement on the launch: “Assessing liquidity risk is an essential business process for both buy-side and sell-side institutions because they need to assess the cost of capital for any asset they want to hold in their portfolio or on their balance sheet.”
“Bloomberg LQA provides a consistent data-driven approach to measuring liquidity that helps our clients make more informed investment decisions, as well as simplify their regulatory reporting and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term processes,” Vigano added.
Bloomberg has unveiled a new Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term risk assessment tool (LQA), which aggregates its comprehensive data capabilities with machine learning techniques in a bid to ascertain what factors directly influence liquidity, according to a Bloomberg statement.
LQA is derived from two pillars: Bloomberg’s data streams and quantitative models, as well as the application of machine learning techniques. The group’s foray into liquidity management is important for a host of venues and both retail and institutional players, given the sometimes less than transparent nature of certain markets, i.e. fixed income, among others.
In particular, LQA utilizes such methods as machine learning techniques and cluster analysis to help identify and leverage transaction data as well as assist in liquidity risk analyses. As opposed to other liquidity assessment tools, LQA’s reliance on machine learning garners a more extensive scope and analysis by which liquidity can be measured. Bloomberg’s LQA is also compatible across all asset classes.
The new tool caters to risk managers, portfolio managers, traders, and compliance officers. The genesis for the launch of the device has its roots in the US financial crisis in 2008, in which a panel of regulators scrutinized the quality and effectiveness of risk assessment processes and liquidity standards.
According to Ilaria Vigano, Head of the Regulatory and Accounting Products Group at Bloomberg, in a recent statement on the launch: “Assessing liquidity risk is an essential business process for both buy-side and sell-side institutions because they need to assess the cost of capital for any asset they want to hold in their portfolio or on their balance sheet.”
“Bloomberg LQA provides a consistent data-driven approach to measuring liquidity that helps our clients make more informed investment decisions, as well as simplify their regulatory reporting and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term processes,” Vigano added.