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Tag: EntTechData_2026

  • What type of data is needed to find opportunities | Insights | Bloomberg Professional Services

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    For instance, State Street now generates a continuous stream of inflation data for its clients, merging traditional indicators with alternative data sources like observed consumer spending and digital news. “If we look at central banks and interest rate projections, you can use this information set to address gaps when the central bank isn’t speaking,” says Clark. “What is the rhetoric around a central bank? Our research shows that this can have implications for forecasting yields. More interestingly, you’re getting breadth in perspective and incremental alpha outside of periods where conventional data sources are available.” 

    Notably, Bloomberg offers alternative data solutions to its clients via Bloomberg Terminal and data feeds, and these include consumer transaction data analytics from Bloomberg Second Measure and foot traffic data analytics from Placer.ai, as well as Similarweb’s web traffic data. 

    How data drives discretionary versus systematic processes 

    Discretionary managers now analyze a broader universe of securities due to scalable data infrastructure, while quant teams increasingly translate unstructured data into structured signals for models. These trends support the convergence of systematic and discretionary styles, driven by AI enhanced research workflows and improved data engineering practices. 

    “From a discretionary point of view, we’re seeing discretionary managers able to look over a much broader breadth of names because they’ve got the scalability to gain insight from that data. They’re able to pick out things they never could before,” says Tushara Fernando, Head of Data and Machine Learning at the Man Group. “From a systematic point of view, we’re able to translate and quantize unstructured data into more structured data that we can use in our quant models.”    

    Indeed, the proliferation of data and AI tools has pushed discretionary and systematic approaches towards convergence, says Systematica’s Dooms. “Discretionary managers get a lot of benefit from GenAI tools in terms of adding code to their process, making it more systematic. Systematic investors get to use data traditionally in the human realm – unstructured data – and parse it into signals,” he explains, adding, “Under the hood, there’s a lot of work to get that process right: how do you shape and architect the data to make it consumable by AI workflows?” 

    The rise of agentic workflows 

    Zooming in on agentic AI, experts point to the technology’s early progress in enabling practical, tool-driven workflows. Says Dooms, “To me, agentic AI is not just about chain-of-thought and automation – that’s table stakes. Your basic ChatGPT-style chatbot does planning and thinking. It’s really about tool-calling: architecting processes where you can identify things you were not able to do before and can now do thanks to scalability and then presenting data so it can be used by an LLM.”  

    State Street’s Clark cites his own organization’s internal analytics capability as a prime example of agentic AI’s potential. “We’ve got different data sources – our own research, structured and unstructured data – and we’ve got agents querying tools to trigger further actions: generating investment insights for clients or internal stakeholders, triggering signals for capital markets settings, etc.,” he explains, “We’re not at the end state where that’s fully implementable, but we’re well into that pathway.” 

    Why democratizing data access is essential for scalable investment processes 

    Implementation of cutting-edge data and AI tools still requires human input. Indeed, making the same data available to everyone from entry-level employees to the C-Suite is one key to success. “It’s incredibly important for us to provide an infrastructure for traders, junior traders, desk-side analysts to have access to all the data we have in a seamless fashion, and to provide them with low-code or no-code solutions so they can play with their own data and derive insight,” says the Man Group’s Tushar.  

    “We want to give them a platform to do their own testing and back testing, analyze their flows and profitability, and tell us how to be more proactive, having done some of the work themselves. That’s key to scaling up our contribution,” he adds. 

    State Street’s Clark agrees with this statement, observing, “I think the big innovation is that data is now for everyone. The notion that you’re a decision maker but someone else handles data and insight is dead. Building data literacy is the big innovation.”  

    Interested in more insights from Bloomberg Enterprise Tech & Data Summit 2025 in London, click here. Learn more about Bloomberg Enterprise Tech & Data solutions here

    Insights in this article are based on panels and fireside discussions at the Enterprise Tech & Data Summit held in London in November 2025. 

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    Bloomberg

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  • Pricing Insights: Analyzing quote data across global credit markets | Insights | Bloomberg Professional Services

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    Measuring quote and trade reference differences

    To address this, we looked at 4 markets – U.S. Investment Grade, U.S. High Yield, EUR Investment Grade, and GBP Investment Grade, as they are among the most liquid credit markets in the world.

    For the U.S. markets, we used TRACE as our trade source. For EUR and GBP markets, we used Bloomberg data as our source. We considered trades that are >250,000 (local currency) from August 2025, and after applying certain other filters and simplifying assumptions to keep the analysis succinct and viable, the remaining trades served as our collective “ground truth” for benchmarking.

    Next, we calculated the difference between three benchmarks that were observable just prior to each trade, and the trade level itself:

    • IBVAL – pricing source available on the Bloomberg Terminal via PCS (IBVL) and for delivery through Bloomberg’s real-time market data feed, B-PIPE. It makes use of both quote and recent trade data to produce a trade level reference price and to help answer the question: If this bond were to trade right now, where would it most likely trade? It is explicitly targeting trade expectations.
    • CBBT – rules-based composite price which filters available executable quote levels in real-time to produce context for trading. It does not take trade information into account. 
    • Median quote –  a simple quote-based composite that reflects the median of available quote levels, without applying additional filters or weighting.

    At charts presented below (Charts 1-4) those differences are aggregated and displayed as distributions (boxplots) by market. The Y-Axis is a measure of that difference in price. Positive results (the upper half of the chart) suggest that a trade was tighter than (inside, or better than) the benchmark level, or conversely, the benchmark level was wider than the trade level.

    Negative numbers (the lower half of the chart) suggest that the trade was wider than (outside, or worse than) the benchmark, or conversely, the benchmark level was tighter than the trade level. The 0 line means that a trade level and benchmark level were the same.

    The boxplot itself captures the distribution of differences, shown as the 25th and 75th percentiles (box), as well as the 10th and 90th percentiles (whiskers). The 50th percentile (median) is shown as a light gray line through the box.

    U.S. High Yield - August 2025

    EUR Investment Grade - August 2025

    GBP Investment Grade - August 2025

    How quote and trade benchmarks perform across global credit markets

    Based on the U.S. Investment Grade results shown in Chart 1, we can observe how each benchmark performs versus traded levels. We can see IBVAL’s 50th percentile difference falls almost exactly on the 0 line, suggesting that its performance is tightly coupled with trade levels. This is by design, as IBVAL is intended to be a trade reference price for pre-trade workflows. Analogous values for CBBT (13.5 cents) and Median Quote (9 cents) are consistent with expectations for quote composites, which are away from traded levels.

    Viewed slightly differently, since IBVAL’s light blue box is right on top of the 0 line, it is considered centered on the traded market; trades are as likely to be slightly too tight as too wide. For CBBT, its dark blue box is fully above the 0 line and we see 92% of trades occur inside (tighter than) this benchmark’s bid/ask. For the Median Quote, its purple box is also fully above the 0 line and we see 82% of trades occur inside (tighter than) this benchmark’s bid/ask.

    Chart 2 (U.S. High Yield), Chart 3 (EUR Investment Grade), and Chart 4 (GBP Investment Grade) tell similar stories. Though the specifics match their respective market dynamics, in each case, we see IBVAL centered on the traded market and quote composites shifted away from traded levels.

    How Bloomberg solutions can help with price discovery

    Quote data and reference prices remain critical tools for traders to access real-time information on far more bonds than might trade in any period of time. The availability of a trade reference price such as IBVAL helps strengthen the pre-trade process, even if local dynamics might vary across markets. This enables traders to make use of a consistent set of tools across their global credit portfolio.

    Interested to learn more about using IBVAL for your pricing needs? Click here.

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    Bloomberg

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