Capital IQ, the data and analytics arm of Standard & Poor’s spin-off McGraw-Hill Financial, has added content from London-based securities lending and short-interest data and analytics vendor Data Explorers, to its Capital IQ platform and Xpressfeed data management service, to support buy-side asset allocations.
The data—sourced directly from market participants such as prime brokers, custodians, asset managers and hedge funds—covers 3 million intra-day transactions, covering $13 trillion of securities in the lending programs of over 20,000 institutional funds. It will be available via Capital IQ’s desktop and Excel Plug-In, its Xpressfeed service for quantitative research and modeling, and other applications such as the vendor’s ClariFI portfolio optimization tool, says Carson Boneck, managing director at Capital IQ.
The two vendors have been working together “for some time” to exact maximum benefit from this data and the integration with Capital IQ’s other content by converting complicated data into indicators, predictive numbers and analytics that can be used in an asset manager’s workflow, as part of a six-month project, officials say.
According to Data Explorers chief operating officer Jonathan Morris, the data has traditionally appealed to OTC market participants, such as custodians and prime brokers and more recently, hedge funds—but, given recent market volatility, long-term asset managers are now also showing an interest in the short side of the market. “Securities lending flow data can be a valuable signal to help long-only investors make asset allocations such as whether to go underweight or overweight a stock or sector,” Morris says. “So, by correlating this with other factors and content within Capital IQ around that security, institutional investors can make better informed decisions on asset allocation.”
Data Explorer’s content has been live on the Capital IQ platform for the past month while the vendors tested the service with several unnamed clients.
Author: Faye Kilburn
Inside Market Data | 26 Sep 2011 | 05:34
The original article is here.