Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Terminal Activity

Analyzing News On Defaults

In Companies and Banks
Learn how to use Bloomberg to analyze news on defaults
Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Table of Contents

Terminal Activity: Analyzing News On Defaults In Companies and Banks 3

Activity Description 3
Learning Objectives 3
Materials 3
Time 3
Activity Instructions 3
Functions For This Activity 5
TOP <GO> | Top News 5
CRPR <GO> | Credit Profile 5
Bloomberg Help 6

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Terminal Activity: Analyzing News On Defaults In Companies and Banks

Activity Description
This activity aims to develop students' ability to analyze news stories on corporate or financial institution defaults. Students will use
the CRPR function on the Bloomberg Terminal to gather relevant information, such as credit ratings and rating changes, and
discuss the news stories and their implications.

Learning Objectives
At the end of this activity, students will be able to:
• Analyze Bloomberg News stories on default events related to corporate, or financial institution defaults.
• Utilize the CRPR function on Bloomberg Terminal to gather relevant information, such as credit ratings and rating changes.
• Discuss the news stories surrounding the default events and their implications.

Materials
• Bloomberg terminal
• Projector and screen

Time
1 hour

Activity Instructions
1. Introduction (5 minutes)

• Begin the lesson by explaining the importance of understanding default events in the financial world and their
impact on various companies or sectors.

• Highlight the role of news in reporting and analyzing default events (e.g., the impact of trade restrictions on a
company’s prospects).

• Explain the objective of the lesson: to analyze news stories on default events and utilize the CRPR function to
gather relevant information.

2. Assignment Explanation (5 minutes)

• Instruct students that they will be assigned a group or individual assignment to analyze a Bloomberg News
story on a default event.

• "News on corporate default," "News on bank default," etc.).

• Emphasize that students should focus on analyzing the credit ratings and rating changes of the corporation or
financial institution involved.

• Explain that they will utilize the CRPR function on Bloomberg Terminal to gather necessary information for
their analysis.

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

3. CRPR Function Overview (10 minutes)

• Explain how to access and navigate the CRPR function on the Bloomberg Terminal.

• Demonstrate the process of specifying the issuer or security and selecting the desired rating for evaluation
using the Rating Company Rating window.

• Encourage students to familiarize themselves with the handout and explore the CRPR function on their own.

4. Analyzing Bloomberg News Stories (15 minutes)

• Instruct students to find a news article on Bloomberg.

• They should read the news story carefully, paying attention to details such as when the default occurred, when
the rating was last changed, and whether there were any prior downgrade warnings.

• Direct students to utilize the CRPR function on Bloomberg Terminal to gather information on the credit profile
and rating history of the corporation or financial institution involved in the default event.

• Encourage students to take notes and record relevant data for their analysis.

5. Group Discussion (20 minutes)

• Divide students into small groups and allow them to share their findings and analysis.

• Facilitate a discussion among the groups, encouraging them to compare and contrast the default events and
their implications.

• Encourage students to consider the impact of credit ratings and rating changes on investor confidence,
market reactions, and the financial stability of the entities involved.

• Promote critical thinking by asking questions such as:

o How did the credit ratings and rating changes reflect the financial health of the corporation or financial
institution?

o What were the potential reasons for the default, and were there any warning signs?

o What do you think the implications are of a ratings agency putting a company on notice for a potential
upgrade or downgrade?

o How did the news stories contribute to market reactions and investor sentiment?

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

6. Conclusion (5 minutes)

• Summarize the key points discussed during the group discussion.

Functions For This Activity

TOP <GO> | Top News

TOP <GO> displays headlines of the day's top worldwide stories from Bloomberg News® along with editorially
curated charts and digests, so you can access the most important news in one place.

Note: When you enter a different TOP shortcut (e.g., TOP Defaults, TOP Corporate Defaults, TOP Bank Defaults), the
results screen of the News & Research Menu (N) function appears.

CRPR <GO> | Credit Profile

CRPR <GO> displays current and historical credit ratings and provides transparency into rating changes, so you can
assess the creditworthiness of a debt issuer or specific fixed income security.

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Bloomberg Help
Each function has a comprehensive, searchable online user guide designed to answer common questions and describe key
functionality. From within any function, press <HELP> once or click the HELP button to access that function’s Help Page.

Get hints as you go. On any Bloomberg function, you can position your mouse over key items for more information.

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Bloomberg Toolkit for Students Analyzing News On Defaults: Companies & Banks

Student Handout

Analyzing News On Defaults

In Companies and Financial
Institutions
Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Table of contents
Table of contents 2

Activity Goals 3

Activity Instructions 3

Functions For This Activity 4

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Activity Goals
• Analyze Bloomberg News stories on default events related to corporate, or financial institution defaults.

• Utilize the CRPR function on Bloomberg Terminal to gather relevant information, such as credit ratings and rating changes.

• Discuss the news stories surrounding the default events and their implications.

Activity Instructions
Introduction
In this activity, you will use the Bloomberg Terminal to analyze news stories on corporate or financial institution defaults. You will
also use the CRPR function on the Bloomberg Terminal to gather relevant information, such as credit ratings and rating changes,
and discuss the news stories and their implications with the class.

Your Task:
Activity 1:

• Find a news article on Bloomberg.

• Read the news story carefully, paying attention to details such as when the default occurred, when the rating was last changed,
and whether there were any prior downgrade warnings.

• Use the CRPR function on Bloomberg to gather information on the credit profile and rating history of the corporation or financial
institution involved in the default event.

• Take notes and record relevant data for their analysis.

Activity 2:

• Form small groups to share your findings and analysis

• Compare and contrast the default events you analyzed and their implications

• How did the credit ratings and rating changes reflect the financial health of the corporation or financial institution?

• What were the potential reasons for the default, and were there any warning signs?

• How did the news stories contribute to market reactions and investor sentiment?

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Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Functions For This Activity

TOP <GO> | Top News
TOP <GO> displays headlines of the day's top worldwide stories from Bloomberg News® along with editorially
curated charts and digests, so you can access the most important news in one place.

Note: When you enter a different TOP shortcut (e.g., TOP Defaults, TOP Corporate Defaults, TOP Bank Defaults), the
results screen of the News & Research Menu (N) function appears.

CRPR <GO> | Credit Profile

CRPR <GO> displays current and historical credit ratings and provides transparency into rating changes, so you can
assess the creditworthiness of a debt issuer or specific fixed income security.

4
Bloomberg Toolkit Analyzing News On Defaults: Companies & Banks

Bloomberg Help
Each function has a comprehensive, searchable online user guide designed to answer common questions and describe key
functionality. From within any function, press <HELP> once or click the HELP button to access that function’s Help Page.

Get hints as you go. On any Bloomberg function, you can position your mouse over key items for more information.