Asset Management Unit of Denmark’s Biggest Bank Adopts Bloomberg LQA

The wealth management unit of Denmark’s biggest bank, Danske Bank Asset Management, has adopted Bloomberg’s 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 Assessment Tool (LQA), a solution for risk analysis of trading liquidity that utilizes Machine Learning Machine Learning Machine learning is defined as an application of artificial intelligence (AI) that looks to automatically learn and improve from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on the development of computer programs that can access data and use it learn for themselves.This has many potential benefits for most industries and sectors, including the financial services industry. Machine Learning ExplainedMachine learning can be explained Machine learning is defined as an application of artificial intelligence (AI) that looks to automatically learn and improve from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on the development of computer programs that can access data and use it learn for themselves.This has many potential benefits for most industries and sectors, including the financial services industry. Machine Learning ExplainedMachine learning can be explained Read this Term, according to a corporate statement.

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The LQA tool, which was developed over a six-year period, allows the firms to measure and benchmark the liquidity risk of its fixed income and equity portfolio investments whilst adhering to UCITS and AIFMD’s regulatory reporting requirements. The solution caters to bond risk managers, portfolio managers, traders, compliance officers and other institutional investors since it provides a quantitative approach to calculating liquidity risk consistently across asset classes.

According to Bloomberg, it’s the first system of its kind to combine financial data and machine learning techniques to calculate the multitude of relevant factors influencing liquidity. Bloomberg’s LQA also enables its users to measure the expected cost of liquidation for a specific volume of securities, and a desired time horizon.

Danske Bank Asset Management is one of the largest asset managers in the Nordic region with more than $110 billion in assets under management. Copenhagen-based Danske Bank introduced its new wealth management unit back in 2015 in a bid to benefit from the considerable growth in the Nordic market and as lenders across Scandinavia looked for ways beyond traditional lending to generate more revenue.

Scandinavian banks have been suffering from a prolonged era of negative interest rates which have eroded their fortunes in the last few years. Most analysts expect rates won’t turn positive until the start of 2018 at the earliest.

Commenting on this, Chris Casey, Global Head of Bloomberg’s Reference and Regulatory Data group, said: “Regulators are now more prescriptive about compliance requirements, urging financial firms to measure and report liquidity risk in a systematic way across their firm. We’re committed to helping Danske standardize its compliance workflow using Bloomberg LQA.”