Bloomberg software and database basics

Bloomberg software and

database basics

Asparuh Paleshutski

Dr. George Alexandrou

Introduction

Getting Started

Keyboard essentials

Searching Bloomberg

Bloomberg‟s News platform

Using the excel add-in

Questions and practical task

Bloomberg‟s Launchpad

Equity and Fixed Income essentials

FX functionality

Practical examples

Questions

Contents

First S

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IntroductionBloomberg is a financial services system that provides 24-hour current

and accurate financial, economic, and government information

covering all market sectors worldwide. It also features analytics,

company financials, historical market data (approximately twenty years

back), statistics and current news reports.

Bloomberg is a menu driven, interactive, user friendly and can be

customised to fit every investment strategy and informational need.

The system is being enhanced and upgraded constantly and

whenever possible customer suggestions and feedbacks are

incorporated.

When the students should use Bloomberg?

If you require any of the following:

· Historical and real time stock, bond or commodity prices

· News on companies, industries and global markets

· Equities and equity indices research

· Economic profiles and indicators for countries

Getting started

Log on

To use Bloomberg you will first need to have access to the Bloomberg

room on the first floor of the Nightingale LRC. Then you have to log

into your university account. To log on:

1. Press the red <CONN DFLT> key

2. Enter Username and Password in the corresponding fields using

the information provided on the top of the black computer box

below the monitors

3. Press the green <GO> key

Log off

1. Press the red <CONN DFLT> key to log off or right-click the

mouse and select Exit

2. Log off your university account

Getting started…

Upon login, Bloomberg opens four windows. Use the blue <PANEL> key to toggle between the windows.

There are three ways to navigate the system. You can point and click, enter numbers into the command line or use the codes to select various functions. The command line normally has auto complete function activated so it will display the possible options when you start writing.

Getting Help Note three ways to use the green <HELP> key: 1. Press the <HELP> key to define terminology, formulas, and

applications for every screen 2. Type the terms you want to research, then press the <HELP> key

and make your selection from the menu 3. Press <HELP> <HELP> twice for instant messaging with 24-hour

customer support representative

The Bloomberg Keyboard

• The Bloomberg keyboard is customized and colour-coded to allow users quickly and easily to access the information contained in the Bloomberg system and to perform specific functions.

• Although it is multi-coloured, it is a normally functioning keyboard, and when used in concert with the Bloomberg Professional service it's a very, very powerful guide.

• The best analogy to use when thinking about the keyboard is that of a stoplight with red, yellow and green keys.

The Bloomberg Keyboard…

Green Keys The Green keys are action keys and allow you to move throughout the system.

<GO> to activate a function <NEWS> to access Bloomberg’s 24-hr global online news

service <HELP> to define terminology, formulas, and applications

for every screen <MENU> to back up through the system (to the previous screen) <PRINT> to print any screen

The Bloomberg Keyboard…Red Keys

<CONN / DEFAULT> to log off/on

<CANCEL> to reset a screen

Yellow Keys

The yellow keys represent market sectors — government, corporate, mortgage, money market, municipals, preferred, equity, commodities, index, currencies and client.

<GOVT> securities issued by national governments and

securities by quasi-governmental agencies

<CORP> information regarding corporate bonds

<MTGE> information regarding mortgages and

collateralized mortgage obligations

The Bloomberg Keyboard…

<M-MKT> money market information <MUNI> trading, descriptive, and settlement information regarding municipal and state bonds <PFD> preferred stock of public companies <EQUITY> historical and intraday price records for common stock, options, and SEC filings <CMDTY> commodities and their associated futures and options <INDEX> generic interest rates as well as economic indices, such as CPI <CRNCY> foreign currencies

Searching Bloomberg

• Bloomberg is a menu-driven database. To access a function’s menu, use the yellow Market Sector keys, or mnemonics, or enter a term followed by the green <HELP> key.

• Mnemonics are the shortcuts to any function and they are displayed in bold letters next to numbers on a menu, e.g. HP for Historical Price, WEI for World Equity Indices, MA for Mergers and Acquisitions menu and etc. You can find more mnemonics, arranged by market sector, in the Bloomberg Cheat sheets available under the CHEAT<GO> command.

Searching Bloomberg…

Now that you understand how the keyboard works, you are ready to learn the logic of the system to be able to retrieve the information you need.

• Bloomberg is a menu-driven system structured in three levels: 1) General Market and News; 2) The one security Function Level; 3) Two securities Function Level.

• Bloomberg allows you to take short cuts around the system -to by-pass menus if you like. You can move from one screen directly to another screen if you define a security and remember the Bloomberg mnemonic for the analysis to be run. This is obviously the fastest and most efficient way to use Bloomberg .

Searching Bloomberg…1. Market Sector and News

The top level can be accessed by selecting the yellowMarket Sector key followed by the <GO> key. For example, toaccess all the available functions in equities market, press<EQUITY> <GO> and then make a menu selection either bytyping the selection number or its mnemonic and thenpressing <GO>.

Bloomberg News Bloomberg Business News is an online proprietary 24 hour global news service. To open the Bloomberg news menu, press the <NEWS> <GO> then select News Menu. For screening archive-type news, select the amber field and type a word or type TNI <GO>. For the latest news headlines worldwide type TOP <GO>.

Searching Bloomberg…

2. Single Security: The second level of the Bloomberg menu is security specific, which means that you must select a security first. For example, typing BARC <EQUITY> <GO> will take you to the function menu for Barclays PLC. From this menu, you may chose any of the analytics functions by typing the menu number that corresponds to the function or by entering the mnemonic and <GO>.The easiest way to get the comprehensive data on one security is to select DES <GO> from the security menu, and to find all related securities, select RELS <GO>.

3. Two securities:The third level allows you to compare two securities. You need to select two securities to access comparative analytics such as Price/Yield Ratio History, Regression Analysis, Fundamental Analysis, etc. For example, to get a comparative analysis of Barclays and HSBC, type BARC <EQUITY> HSBA <EQUITY> <GO> to bring up the two-securities’ functions menu for both companies. You can then choose any of the analysis by typing the menu number that corresponds to the function or by entering the mnemonic and<GO>.

Bloomberg News Platform

The Information is a recognized power that often moves the markets in one way or another. There is no better way to get it than via the news applications available on the Bloomberg system.

The News platform is 24-hour fast, accurate and a comprehensive coverage of the global markets, economies, companies, politics, sports and much more.

To access main Bloomberg Business News menu: Press N <Go>.

This menu is divided into specific categories by white highlighted banners, with news cross referenced for easy access.

To access a specific news category, by-passing the NEWS menu, you may use the mnemonics (shown in white) followed by <Go>.

Bloomberg News Platform…

For example widely used mnemonics are:

TOP (equal to <NEWS> button), which shows the current top stories for business and finance.

READ shows the most popular business news

AV redirects to the current audio/visual broadcasts, which include live streaming as well.

ECO gives the recent and expected economic releases together with the expectations about them.


There are number of ways to customise the news and

research menus so that they can meet your particular

needs.

For example after hitting the <NEWS><GO> or TOP <GO>

you can customize your preferences.

• In the amber dropdown field you can change the

categories to the one that interest you the most.

• You can also enter key words in the amber field above as

well, which will result in filtering the news stories.

• Very useful option also is the refine search option under

the red options tab, where you can filter all the news under

different categories.

• You can also set up bookmarks and alerts so you don‟t

miss any particular story.


There are number of ways, if you want to perform a custom

on demand news search.

The first option is In the N <GO> menu to type NSE <GO>,

which allows us to search and display new stories, research

reports and multimedia presentations all in one. By clicking on

the amber command line we can type chosen by us key

words.

We can also use the links below that allow us to filter the

news even further. Once we filter the results we have many

options in the dropdown menus. We can also save our search

and access it later on.

Other way to do a custom search for different categories is using the NI (news by category) mnemonic followed by <GO> or NI together with other mnemonic like for example ECO(economic news) and <GO>. The screen gives us again number of options to customize the results.

A final way to search for news or categories on Bloomberg is to actually go ahead and type the keyword in any command line. For example lets type TARP followed by the green <HELP> key. And then you’ll see number four here for news subjects, it will bring us directly there as well.



There are few options for a quick access to news on a

single company without going through the filtering

process. First we have to enter the company in the

amber field followed by <EQUITY> <GO> and then CN or

MCN <GO>. The first will display company specific news

and the second would show the most read news.

Next important feature of the platform is doing a custom

search on research that‟s actually available on

Bloomberg. It is available via RSE <GO> command.

Similarly to our news search there are many options to

filter the results, which will be explored further in our

second session.

Bloomberg Excel Add-in is a powerful tool that delivers Bloomberg data

directly into Excel spread sheet for custom analysis and calculations.

Excel Add-in functionality is available in Excel from the Bloomberg menu

item on the top menu bar.

Installing Bloomberg Excel Add-In

If you don‟t see Bloomberg on the top menu bar in Excel, install it by

following these steps:

1. Click Start >All Programs >Business>Bloomberg > Install Excel Add-In.

2. In the pop-up window click Install. Close the pop-up window.

3. Close Excel; then re-open Excel.

Alternatively go to My Computer>Business(K:)>Bloomberg>Shortcut to

BB Add-In and click twice.

Bloomberg Excel Add-in

Bloomberg Excel Add-in...

After re-opening excel there should be Bloomberg toolbar on your top

menu like the one shown above. By clicking on it you will be now able

to use variety of tools in Excel, which will be very helpful for your

academic or personal needs - from implementing it into Dissertations

and course works to creating reports for certain countries or security

portfolios.

There are several ways to retrieve and manipulate Bloomberg data

directly in Excel:

1. Using Wizards

2. Using Field search

3. Using Bloomberg formulas


1. Using Wizards

The wizards provide a guided process to draw data from Bloomberg

into a spreadsheet.

Import Data wizards enable you to retrieve any number of individual

data items.

Click the Import Data or in some cases Real-Time /Historical icon

on the toolbar.

From the new window select one of the Wizards depending on your

needs.

Market, Reference, Analytical, Data Sets enables you to retrieve

the most recent data from over 500 fields including analytics, real

time prices, fundamental data, and descriptive data such as company

business description etc.


Historical End of Day enables you to retrieve end-of-day time

series data for a specified period of time in increments of days,

weeks, months, quarters, or years.

Historic Intraday Bars enables you to download intra-day data

for various market parameters for up-to 50 days with a periodicity

down to one minute.

Historic Intraday Ticks shows the intraday market tick for time

increments, based on bid, ask or trade events (replicating the QR

screen).

We will focus on the first two functions as they should be more

relevant to your needs.

Additional and very useful wizards include Equity Screening,

Fundamental analysis and Technical analysis wizards.

Bloomberg Excel Add-in...Market, Reference, Analytical, Data Sets

It has 3 steps that include defining the securities we want to examine,

fields that we need about the securities and the actual visual way and

place of their data importing.

For example lets say we need the volume of the certain securities.

In the first step we can manually key in the securities or we can use

the drop down menu below to locate them from different sources.

The second step consists of defining the data fields that we need,

which is done thanks to the search text cell. When we type “volume”

into it, we see different options and by clicking on them their

definitions are shown below so we can be sure that we have chosen

the right one.

In the third step we can specify our preferences for the labels, field

orientation and other more „cosmetic‟ options regarding the data

import.


Historical End of Day

This function has a very similar steps with the difference that

additional ones are introduced for the defining the time series

periods and the currency of the output.

The data that we will have as a final output will be historical end

of day for the specified by us period from days to years.

Example...


Using Field Search

A field is any of 900 available data types, e.g. price, volume,

yield etc., which you can retrieve from Bloomberg and apply to

multiple securities without using Bloomberg wizards. Follow

these steps:

1. Enter a list of securities leaving one cell on top clear, for

example starting with A2. You must add the market sector

identifier after the ticker, e.g. DELL US Equity.

2. Place the cursor in the next column in the title row, e.g. in B1

and click the Field Search icon on the toolbar. In a pop-up

window, enter a keyword in the text box and click Search. Select

as many fields as you need; then click Apply.

3. Place the cursor in the Home Cell, e.g. next to the title row, in

our example cell A1. Click the Populate Table icon on the

toolbar. Bloomberg data will populate your spread sheet.

Using Bloomberg Formulas

Use Bloomberg formulas to bypass wizards and retrieve the same data as

available via wizards. Bloomberg formulas are Excel-type functions and

accordingly, use the same syntax as Excel.

Bloomberg offers three formulas:

BDP (Bloomberg Data Point) returns data to a single cell in your Excel

spread sheet. This formula contains only one ticker and only one field. BDP

formula syntax: =BDP(Security, Field).

BDH (Bloomberg Data History) returns the historical data for a selected

security. BDH formula syntax: =BDP(Security, Field, Start Date, End Date).

BDS (Bloomberg Data Set) returns multi-cell descriptive data to your Excel

spread sheet. BDS formula syntax: =BDS (Security, Field).


A more flexible way to perform calculations using Bloomberg formulas is

to use Excel cell references instead of entering Bloomberg tickers or field

mnemonics.

For example, type IBM US Equity in cell A2, then the formulas shown

above will look as following:

=BDP(A2,“Px_Last”)

=BDH(A2,“Px_Last”,“01/01/01”,”12/31/01”)

=BDS(A2,“CIE_DES_BULK”)

Function Builder: for automatically creating formulas, use the Function

Builder tool by clicking the icon on the toolbar. In the pop-up window,

select Bloomberg in the Or Select a Category field.


Bloomberg Excel Add-inMoving Lists of Securities into Excel

Wizards enable you to import securities from various sources

listed in the drop-down list in the Select Securities section as

shown on right.

From a spread sheet:

1. Open a spread sheet which contains a list of securities.

NOTE: Securities should be entered with Bloomberg identifiers,

e.g. IBM Equity.

2. From the drop-down list, select Spread sheet. The Range

field appears shown below on right.

In the Range field, specify a range of cells by one of the

following methods:

• Enter a range from the current spread sheet in standard Excel

format, e.g. $A$2:$A$4

Or

•Select a range from an open spread sheet


From Equity screening:

1. From the drop-down list, select EQS - Equity Screening. All

available screens appear in the Saved Screens drop-down list.

2. From the Saved Screens drop-down list, select a screen. The

securities appear in the Available security window.

3. Select one or more securities and click the Add button or click the

Add all. The securities will move to the Selected securities

window.

Drag & Drop Securities from Bloomberg:

On some Bloomberg screens you can see the Drag&Drop icon in

the top right corner of the screen. You can click this icon and drag

securities directly into the Available Securities window, or Selected

Securities window in Wizards, or directly into an opened Excel

spread sheet. Once in Wizard or in a spread sheet, the tickers are

displayed with Bloomberg market identifiers.

Printing:

To print a single screen, press the green <PRINT> key

To print more than one Screen at a time, type the total number of

pages to be printed, and then press the <PRINT> key. For

example, to print three pages at a time, type 3 <PRINT>.

To e-mail screens to others, see under Message Groups how to

establish a project group.

To send a single screen as an email attachment enter Grab

<GO>

To save a screen as an image in Word document, at the screen,

press Alt-C; then in Word document, select

Paste > Paste Special > Bitmap

Printing and Downloading

from Bloomberg

Printing and Downloading… Downloading results:

Different Bloomberg screens offer different download options. To view

available options, including exporting results into Excel spreadsheet,

click the Export button on the top bar, or click the red Output tab above

the results where available. Some screens display the Download to

Excel option or 97 <GO>.

Downloading tables to external drive: Save file Different Bloomberg

screens offer different download options. To view available options,

including exporting results into Excel spreadsheet, click the Export

button on the top bar, or click the red Output tab above the results

where available. Some screens display the Download to Excel option

or 97 <GO>

Downloading Bloomberg Excel files into external drive: Select Save

As then select text (Tab delimited) (*txt) file format. On your external

drive, your file will preserve the values but Bloomberg Excel

expressions will be gone.

Any Questions…?

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Bloomberg’s Launchpad

The Bloomberg‟s Launchpad is a customizable interface that

allows you to quickly, easily access the information you need

most.

In this first part of our second session, we will cover the basics

of the Launchpad application, how to build a monitor, news

searches, add charts as well as some tips and tricks.

The applications should be set up to launch automatically upon

Bloomberg login. But if it doesn't, you can always type into one

of the Bloomberg panels BLP followed by the <GO> key to

launch the application.

On your screens you should have small and transparent menu

with several toolbars.

Bloomberg’s Launchpad...

The Launchpad toolbar is the main frame or brains behind the

application. What you also see are the four tabs. If you are unable

to see these, they could be hiding underneath the "options" button

in the upper right hand corner. When you click on the arrow as

they toggle between being shown and hidden

One thing that you should remember is that every change you

make to your launchpad needs to be saved if you want to retain

your custom made view.

The “Settings” tab holds the default options of your launchpad.

For example, how to choose which view to maximize upon start-

up. You can choose this option from the top in the amber bar drop

down.

The second important tab you will see is the "Tools" tab. This

allows you to create groups of functions, short cuts, to even a

quick - and even a quick link to your monitor manager. We will be

going over the group manager in depth later on.


First, we are going to go through the "Browse" option. It is a quick

link to search for components within the launchpad separated by

specific categories. Other way to search for components is by the

amber search field on the upper left hand corner, which is

extremely useful. The different components are usually ranked by

popularity on the right hand side indicated by the number of stars.

In the same field we can also search for function mnemonic, find

chart or monitor manager. For example if you type ANR <GO> the

launchpad is smart enough to recognise you are trying to pull up

the Analyst Recommendation page and it will automatically load.

As well, you can pull up, for example, the chart and Monitor

Manager. For now, we are going to start with the Monitor

Manager. After pulling up the Monitor Manager, you can see a list

of monitors that I've created in the past. Additionally, you have the

options to search for a monitor in the upper left hand corner as well

as filter your monitors you've created and monitors you've received

from other users.


Creating New Monitor

There are number of ways to create new monitor.

First we can go to the Launchpad‟s Tools tab select “Monitor manager”

and click on “Create new”. From the monitor, you have the option to

open a previously created monitor or create a new one.

The second way is to enter the word “Monitor” in the Launchpad‟s

amber field in the top left and press <GO>.

The third is by using the “Browse” button and after that choosing

“Monitor” and clicking on “Launch component” button.

When you create a new monitor, a black box with a grey outline will

appear. There are five tabs just like on the toolbar that are now labelled

"Monitor", "Views", "Alerts", "News", and "Link To".

Entering Securities into the Monitor

There are a number of ways to enter end-securities into your

monitor.

The first being to simply double click into the cell underneath the

ticker column and type in the security. As you type in the security,

you will see the auto complete drop down that will give you a list of

related securities.

The second way to input security tickers is a drag-and-drop, the

push-pin from Excel. What I mean by this is, if you pull up a

specified index within the monitor - within the Bloomberg and go to

the Members Page(MEMB) you will see in the upper right hand

corner there is an Excel Push-Pin. You can click, drag and drop

this into the monitor and you will see an option for how to import

these securities. You can do this through "insert", "append",

"replace all", or "replace from selected row". You can see that

this has now replaced all the securities into the monitor from the

Dow Jones Industrial.



Another way to import the securities is by doing it by the “Import

securities" option in the “Monitor” tab. From here, you'll see the

option to choose a source. For now, we're going to keep it simple

and go to "Equity Index". We're going to specify the Dow Jones

which is the INDU and again, it's going to ask you how you'd like to

import these securities. So, for now, I'm going to replace them.

Once I import, you can see that they are re-loaded into the same

monitor.

A new feature we have on the launchpad is if you add an index. You

will see that there is a “+” sign next to the indices. If you right click,

you will see the option to "Add Members" which is a quick link to

add the members of the specified index.

Now that we have the securities in the monitor, lets go through

some of the options up here on these five tabs. Underneath the

monitor tab, you will see another quick link to the "Monitor

Manager", an option to re-name the monitor that you're currently

using. "Import Securities" which we just went over, as well as the

"Advanced Settings."

Monitor Tabs

In the "View" tab, we're going to go over first, is the "Group Buy". The

Group Buy option automatically groups your securities within your

monitor by the specified classification. For example, if we group buy

energy sector you will see that the Dow Jones is now grouped by the

energy sector automatically.

The “Summary Statistics” will add a row on to your monitor with the

statistics for each individual data point. For example, if I add the

average line and I update, you will see that you can now see the

average price of the securities within the Down Jones Index -

Industrials Index.

The next option underneath View that I'm going to show you all is the

"Manage Columns". Manage Columns is where you can really

customize the data on your monitor. You can see her on the right hand

side there's a list of the columns you currently have within your monitor.

On the left hand side is where you can search for columns that you'd

like to add to your monitor.



The next tab we're going to go through is the "Alerts" tab. Under the

Alerts is where you can create, edit and enable alerts. To create a

simple alert, you can go to “Alerts", “Create new alert", and you will

see the option to have this applied to all securities or an individual

security. As we click “All securities" we can choose the specific field

that we would like to it to apply to so we can change it to be current

price is greater than and enter a specific value that we'd like.

The next tab is the "News" tab. We have the option to view news on

all the securities with just a quick link to open up a panel within your

Bloomberg for all the news on the securities on this monitor. The

same goes for the research on all the securities as well. But what if

we want to see scrolling news on all of the securities within this

monitor? This is the perfect segue into how to create a news panel in

the launchpad. To access news within the launchpad, we will again

return back to the main toolbar and type in "news panel”. For the

purpose of this exercise, we're going to filter based on a ticker list

because we want this to be linked to our monitor.


Loading Charts

To launch a chart, we are going to go back to the Launchpad toolbar and

type in "chart manager". Once it is loaded, we can see our pre-existing

charts we created as well the ones we created in launchpad. From “My

charts" tab and click on the “Create new" button. For the purpose of this

exercise, we are going to continue and focus on the single security

historical. Once highlighted, you can click on the “Create" and the chart is

created.

To customize this chart, please locate the grey tool bar underneath the

main border. Here is where you can manipulate the data for the chart.

Please note that the chart has a hot spot on the top just like the news

panel where you can drag and drop a new security in here or you can

simply update it by highlighting it and typing in a new security.

We also have the ability to link charts to the monitor as well. From “Chart”

you can click on “Select security playlist". You can link the source to the

launchpad monitor as well and choose the monitor that we created

previously. Once we update this, you will notice we now have arrows in

the upper left hand corner. This is how you can toggle between the

securities within the monitor


Linking Launchpad components

This tool can be found in the launchpad toolbar under “Tools“ and is

called “Group manager." When it opens, you can highlight the

specified components that you'd like to be within the group. So for this

example, we will highlight the graph and the news by clicking next to

the arrow “A” symbol. You will see that they highlight in red as you click

on them. Click “Update” and your group will be created.

Now if you want to link a monitor to this group, from the monitor‟s “Link

to” tab choose “Component groups” and select the group you have just

created. You can see that by clicking on the specific security in the

monitor your graph and news panel are updating accordingly. This is

the so called one click option.

There is one more trick I want to show you and this is the docking

feature that allows you to make multiple components move as one.

When you line up components there is an amber line highlighting

between them and they will be docked once you click on the navigation

symbol

Bloomberg’s Equity functionalityBloomberg‟s Equity functionality is vital for your daily investment analysis.

It fully integrates the very best in real-time data, news and research,

providing you with an unmatched level of market data transparency, dynamic

monitors and powerful analytics. With these tools, you can examine more

than 20 years of financial statements, consensus estimates, extensive

technical analysis studies.

We have already seen that Bloomberg provides direct access to news and

independent with the available under NSE and RSE mnemonics. Real-time

delivery of news and reports ensures that you are getting the information as

soon as it is available. Today we are going to concentrate on the following

more specific tools used for the in-depth security analysis:

1) Corporate events and earnings seasons;

2) Equity screening;

3) Graph functionality;

4) Fundamental Analysis;

5) Earnings estimates;

6) Analysts Recommendations;

7) Peer group analysis.

Bloomberg’s Equity functionality…

Bloomberg's corporate event and transcript resource

After exploring the ways in which you can keep up to speed with the

news and research that affect both the broad markets and your

investments, we will turn our attention to another resource that will give

you a solid grasp of overall market movement. It is available under

EVTS and <GO> and tracks over 100,000 events per year. Coverage

includes earning release, earnings calls, sales results, shareholder

meetings, investor conferences, M&A calls and other relevant company

events.

The top of this screen gives you a set of options to customize your

calendar by date range, view, ticker lists, industry and region. The

bottom row of option also allows you to quickly select the event types

that are most important to your research.

You also have the ability to export these events into your Outlook

calendar using the far right column, keep in mind that you can also click

into each event for links to other analytics, including pages on earnings

analysis, fundamental data, research report and company news.


Earnings season resources

There is a command that allows you to analyze the results of the

current earnings season for your selected list of securities. This

screen, with the shortcut mnemonic EA and <GO> examines EPS,

net income and sales as companies announce their quarterly

earnings.

EA summarizes earnings by sector for all companies in your list and

includes year-over-year growth as well as aggregated surprise

versus the Bloomberg consensus estimates. To sort through each of

the line items available, simply click on the desired measure at the

top left. Lets for example select the S&P 500 as our security pool and

from the top level, which we can get back to by using the <MENU>

key, it is possible to identify a few industries that has a positive

earnings period.


Equity Screening

EQS and <GO> is the Bloomberg equity screening application that

allows you to search for securities based on your defined criteria from

a broad set of underlying data. The interface used for this tool offers

full transparency at every step of the screening process. You can now

identify investment ideas with advanced analytical functionality.

Lets for example try to find the equities in the Materials sector that

currently have Market capitalisation lower than their cash and cash

equivalents.

The auto complete feature will help you identify the specific field you

are looking for. The more you type the further it narrows your choices.

After you have finished selecting your criteria, you can click on results.

All of the matching securities will appear in a list with a list of

comparable columns. This will include any numerical values from your

search criteria. You can add columns to this view using the amber field

above.


Graph functionality

To continue your security-specific analysis, Bloomberg offers a wide

range of graphs. To view the historic movement of a stock you should

enter GP and <GO>. It displays historical closing prices for a selected

security but features a wide range of customization options.

For example, note that you have custom windows at the top of the

screen to adjust your date range, periodicity, display date and currency.

You can also use the grey taskbar to click on items such as news to view

news as of a certain date on your graph.

If you are interested in further analysis using technical studies, you can

continue your graphical analysis of a security on GRAPH and <GO>.

This function provides you with sample charts of technical studies, a

chart showcased to demonstrate a featured charting technique. And

also, it stores custom graphs that you create for your individual analysis.


Fundamental Analysis

To get a fundamental picture of a specific company you can use the

mnemonic FA followed by <GO>. This function is a dynamic

fundamental analysis tool that displays the financial history of a specific

company with full transparency to the financial statements. You can use

it to identify trends and analyze the value of a potential investment as

well as comparing techniques and custom templates for quick access

to the data you need to make a decision on an investment opportunity.

The FA screen will take you to a financial statement summary. You can

customize it by using the drop-down menus. To suit your preferences,

you can click on the “Defaults” tab to adjust which settings will

populate each time you run this function to save you time.

One of the key benefits of this screen is the full transparency it offers

with the financial statements. Once you click through, you can view not

only the company filing but a highlighted portion of that statement

where the selected line item was pulled from.


Earning estimates

Additional layer to the equity functionality is provided by the earnings

estimates available under EEO and <GO>. All earnings estimates are

aggregated for a company in one place so you can quickly see the market

expectation on an investment opportunity.

Again we can customize the view by using the amber fields available.

In the last column on this page the total number of estimates received for

that figure and in parenthesis the number of these recommendations that

were used to compile a consensus.

If we click into a specific measure, we can get even more clarity on this

figure. From here, you can see a visual representation and analyst

breakdown for the figure for full transparency on this data.

On the left there are links to view research reports by each analyst, and from

this screen you can hit the menu key to go back. You can also click to pull

up a graphical representation of sell-side predictions versus the stock price

itself.


Analyst Recommendations

Another dynamic tool for analyst research is the function ANR <GO>. You

can use it to display a list of analysts' recommendations, price targets, price

target time periods and a consensus rating for a selected equity.

ANR allows you to determine the latest analyst sentiment and identify

which analysts have the most accurate equity rating. You can also create or

edit an analyst's recommendation alert.

Bloomberg assigns a numerical value from one to five for every

recommendation where five represents a buy and one represents a sell.

By placing all of the ratings on an even playing field, we can then come up

with a consensus rating on a stock.

You can also view Bloomberg-generated rankings for the analysts on this

screen, which follows each analyst's recommendation over the last year to

determine the top-performing analysts.


Peer Group Analysis

Peer Group Analysis is a core equity functionality available under RV

<GO>. We use it to perform a customized peer group analysis so we can

benchmark our securities' performance against its peers.

This page features the ability to select your peer group using either the

peer drop-down menu or the customized drop-down menu and then

selecting custom peers. This allows you to hand-pick a custom group of

peers for your analysis.

Another peer comparative tool, PPC <GO> complements this analysis.

This is the Bloomberg proprietary peer product comparison screen. It

enables you to perform an in-depth analysis of company revenue lines by

introducing a sector classification hierarchy that allows for the

comparison of product segmentation data across companies on a global

scale.

Bloomberg’s Fixed Income functionality

There are many tools for monitoring the bond markets on Bloomberg. We are

going to spend some time going over broad market functionality and then

look at some tools for single security analysis as well.

A key screen for fixed income players here is if you just hit the <CORP> key

on your keyboard followed by <GO>, which is going to give you a menu

breakdown of all the fixed income functions that we have available on the

terminal. So if you're interested in relative value or yield curves, you can look

here and see if there's any functions that you're interested in and that would

be useful for you analysis.

Just like the familiar TOP there is a news page specifically dedicated to

bonds under TOP BON <GO>, where we can search and customize news.

As we know the economy drives the fixed income market, so the familiar

ECO function is also a great place to look for current releases. Specifically

for if you're interested in the fixed income markets, you may want to look at

government auctions and buy-backs.

Now that we have taken a look at the broad overall economy, we're going

to take a look at interest rates. One of the key functions for interest rates

is BTMM. When you load this screen you'll be able to see all the major

interest rate benchmarks by country. Key aspect on the screen is that all

of the rates on the screen have tickers. If you want to see just a specific

ticker, you can just drag and drop by rate.

Another page that allows you to see current as well as projected central

bank rates is CBRT. This is the central banks portal that shows where the

rates are and have been. You can click into any one of the central banks

to get key rate information.

If we want to look at projections, we are going to bring up the screen

BYFC, for bond yield forecasts. BYFC gives you perspective on where

interest rates are projected to be in the future. If you click along the bottom

of the screen you'll be able to see this information by different region and

you can page down as well to see all of the countries listed within that

specific region. On the left hand side you'll be able to see any recent

updates that were made and then even here on the top right you'll be able

to see a forecast histogram of all the predictions.

Bloomberg’s Fixed Income functionality...


Term structure of IR

To continue our discussion of interest rates, lets have a look at a function

that shows you the term structure of interest rates for a given curve. This

function is CG (curve graph). When the screen appears you'll be able to use

the current curve if you have a curve selected or you can use the sample

Bloomberg curve or you can select option four to select a Bloomberg curve.

Once you select a Bloomberg curve you can search here by name, country,

currency, type, subtype, and publisher.

Once you select a curve, a graph will appear. If you want to add another

curve to this list you can go to 90 “Actions” on the top left, curve list, and

then add more curves by browsing. This allows you to compare credit yields

versus a benchmark, not only today, but again, historically.

If you are interested in seeing all the other curve types we have available on

the terminal, you can type CURVE, followed by the <CORP> key and hit

"Enter." Again, this allows you to search by name, country, and other various

criteria.


Single Fixed Income Securities Analysis

First we are going to look at the bond search function under SRCH. It can

be used for corporate and sovereign bonds. In addition to the basic search

we offer a more granule advanced search. On the top right of the screen

you can click on “Advanced search." Here you will see a more detailed

breakdown of options you can select to filter your bonds. And again, you

can look by industry sectors, exchanges, country, and other various criteria

for filtering down your search.

The first tool that we are going to look at is YAS and this allows you to look

at yield and spread analysis on specific bonds. So we are going to load a

DIS7 (Disney bond), followed by the <CORP> key and run YAS. It allows

you to bond versus a given benchmark. You'll notice any of the fields that

we have here in amber are able to be customized and they let you specify

all the specific inputs on the screen. Another key feature we have here on

YAS is the option to see relative value historically. Type 11 <GO> and this

will bring up four graphs of various information regarding the bond you're

looking at. You'll be able to set what you're viewing on each specific graph.


Credit ratings

The function CRPR allows you to look at all the credit ratings for a specific

company. On the screen you'll see all the ratings are broken down by all of

the rating agencies. If you're interested in seeing any of this information

historically you can click on any of the ratings and you'll be able to see all of

the ratings in the past and when they were changed.

To see a more detailed definition of all of the ratings here as well as a

comparison, you can run the function RATD. These will give you all the

rating definitions and if you scroll down to the second page you'll be able to

see a comparison scale as well.

While credit ratings do offer insight about the credit risk associated with a

specific company, a lot of players in the bond market also turn to the CDS

market to get a perspective on credit as well. One of the top CDS functions

is the CDS sector chart screen, which can be found on GCDS.

In addition to looking at a company's credit rating, we also want to look at

the debt distribution. A key function we have for this on Bloomberg is DDIS.

Bloomberg Portfolio Functionality

Portfolio functionalityThe main Portfolio menu is similar to other market sectors. It is available

under <ALFA> (Client) key and it is divided into banners and you can access

functions using mnemonics or numbers on the menu. The main Functions

are:

• Portfolio Slice and Dice (PSD)

• Real-Time Monitoring (PRT)

• Historical Portfolio Analysis (HPA)

• Attribution (BBAT)

• Key Rate Durations (KRD)

• Scenario Analysis (BSA)

• Risk Overview (BRSK)

• Multi-Factor Models (RSKF)

The mnemonic PRTU <GO> displays a list of portfolios that you have

created and also all the shared portfolios.

NPH <GO> will display for you the news for your portfolio holdings. You can

search for keywords or sort them by different characteristics.

Portfolio functionality…

The portfolio system is not for Portfolio Managers only. The

Bloomberg has an enormous collection of publicly filed Portfolios on

the system that can be used as prospecting tools.

The Portfolio section, appropriately named the ALFA section, will

provide you with yet another way of using the system to establish a

creative edge.

Other advantage is provided by the excel templates available under

XLTP <GO>. For example lets have a look at the Portfolio Return

Driver Matrix. Note that you should remember the number of your

portfolio in order to analyze the main return drivers and compare to

other similar portfolios.

Similarly you can use the Asset allocation calculator template as

reference to your portfolio construction parameters.

Very useful option is offered by the Portfolio intraday monitor and

Portfolio Optimization & Back Testing based on Modern

Portfolio Theory templates that could help you with your every day

investment decisions.

Portfolio functionality…Creating a Portfolio

Type PRTU<GO> and click on “Creating and Updating Portfolio”

Type your portfolio name in the “Portfolio Name” window (the

orange window), then enter Cash Amount in the “Cash” window

The next page allows you to enter the stocks in your portfolio by

ticker symbol, the cost price per unit and the number of units or

position. Don‟t forget that you can use the Drag and Drop method as

discussed before. Enter the stock names and the “Cost per Unit”.

For the correct entries you should be able to see the identification

number filled in automatically by the system. This confirms that your

stock is recognized by the system.

Click on “Finding and Analyzing Portfolio” to view your portfolio.

Alternately type PLST and hit <GO> to enter the screen that displays

a list of your portfolios.

Click on the Portfolio name that you wish to view and analyze. This

will take you to a list of actions that you can do with the selected

portfolio.


Historical Portfolio Analysis

HPA <GO> analyzes a portfolio‟s current and historical allocation, and helps

you understand its performance and risk characteristics. Additionally, HPA

<GO> highlights the risk and return characteristics of the holdings within the

portfolio, identifying what is adding the most value, and the risk return tradeoffs.

Allocation Tab - allows you to view current allocation or backdate analysis or

view a snapshot on single date. You can use the performance button to run

performance attribution against a benchmark. You can also measure portfolio

against a benchmark or even another portfolio or model.

Distribution Tab – allows you to gain insight by viewing graphically

historical risk and return measures on your portfolio, chart individual sectors

(Bar or Scatter), countries, or holdings, as well as the entire portfolio. You can

also get deeper understanding of performance and historical risk versus

benchmark by selecting the relative value checkbox.

Portfolio functionality…Performance AttributionBloomberg‟s Equity performance attribution analytic, BBAT <GO> is a

comprehensive tool featuring 6 data displays that helps you understand your

asset allocation bets and the sources of your return, on an absolute return basis,

or relative to a benchmark.

Summary Tab

Display a graphical view of the asset allocation decisions that were made as well

as the resulting absolute or relative return.

Detail Tab

See all the underlying data calculated by BBAT, supporting ability to drill down to

the security level, and sort by any column

Heatmap and Scatter Tabs

Quickly identify the drivers of return by highlighting via colour coded map the

results of your investment decisions, with brighter colours identifying the extreme

values. The scatter graph highlights the securities or groups of securities that

have most greatly impacted return, considering both active and passive

decisions (e.g. not holding what is in benchmark).

Return Drivers and Holdings

Focusing on the security level returns, these tabs highlights gains or losses due

to timing, as well as outperforming sectors when displaying at sector level.

Performance Attribution...

The measurement and interpretation of performance data is a critical

component of investment strategy review. An investment program must be

constantly monitored to ensure that it remains on track. All investors need to

know how they achieved their performance and sources of value-added.


Attribution is driven by the benchmark. The portfolio is compared to a

benchmark and all the differences are considered as active decisions. This

means that, if some sectors or markets, or any other partitions in a possible

attribution strategy were empty (present) in Portfolio since were present

(empty) in Benchmark, the investor decided not to invest (or to diversify

respect to Benchmark) in those partition.

Performance Attribution...

Asset Allocation: what was the effect of overweighting individual sectors

relative to the benchmark? The allocation effect measures the impact of

decisions to allocate assets differently from the policy benchmark.

Stock Selection: within sectors, how well did the manager select

securities relative to the benchmark? The selection effect measures the

impact of selecting securities different from those held in the benchmark.

Interaction: is the remaining portion of the value-added, combining as it

does contributions from active stock selection and active asset allocation.

The interaction effect measures the combined impact of selection and

allocation decisions within a category or asset class.

Currency Effect: what was the effect to choose a portfolio currency

respect to the original stocks currencies? The currency effect measures the

impact of deviating from the benchmark currency position.


Portfolio Slice and Dice

Bloomberg‟s Slice and Dice screen supports more than 25 different security

types and offers a robust set of integrated analytics for you to view your

portfolio in absolute or relative terms versus a benchmark. Aggregate

measures by multiple classification schemes such as duration, sector or

credit quality. It is available under mnemonic PSD <GO> . You can backdate

your analysis for a historical snapshot of your portfolio and benchmark

characteristics.

PSD <GO> lets you customize your screen to display only the fundamental

indicators that you care about. Create multiple templates to produce different

views for analysing your portfolio‟s characteristics relative to your

benchmark.

You can also use the index aggregation methodology for improved sector

and total portfolio‐level characteristics like historical sector allocation,

portfolio distribution across two fundamental indicators, statistical risk and

return measures, and a security‐level holdings changes report.

Portfolio functionality...

Key Rate Durations and Bloomberg Scenerio Analysis for Bonds

Use Key Rate Durations to manage your interest rate risk across the

curve. Key Rate Durations allow Fixed Income Portfolio Managers to

determine how much sensitivity their portfolio has to movements at

individual points on the curve. This function also allows clients to

determine if their portfolio has a more bulleted structure relative to their

fixed income benchmark. It also allows you to export the report to Excel,

Adobe, or generate an Interactive Report, which allows you to schedule

the report via RPT <GO>.

Bloomberg Scenario Analysis BSA <GO> allows portfolio managers

and analysts to easily stress test their fixed income portfolios in order to

identify which securities may out/underperform their expectations. You

can create and save multiple interest rate scenarios and apply them to

understand the impact on a fixed income portfolios duration, yield and

return.


Portfolio functionality...Scenario Analysis

Bloomberg Scenario Analysis (BSA <GO>)allows portfolio managers and

analysts to easily stress test their fixed income portfolios in order to identify

which securities may out/underperform their expectations. Create and save

multiple interest rate scenarios and apply them to understand the impact on

a fixed income portfolios duration, yield and return.

Risk Overview

Bloomberg offers market risk tools including advanced analytics to help

manage and measure market related risk exposures. BRSK <GO> is your

portal to a selection of portfolio risk statistics, including Stress Tests,

Tracking Error and Absolute/Relative VaR. Customize the VaR output by

time horizon, confidence level and choose from three calculation

methodologies: Historical, Monte Carlo,and Parametric.

Multi-Factor Models

Bloomberg‟s Multi-Factor Risk Model for equity portfolios allows portfolio

managers, analysts and risk managers to analyze ex-ante (predicted) risk of

equity portfolios. The RSKF <GO> analytic will help demonstrate how much

risk your portfolios are exposed to and where the risk is coming from. Factor

models for the US, Europe, Asia, and a global model provide coverage on

more than 88,000 securities.

Portfolio functionality…Analyze portfolio performance

Use TRK to analyze how a portfolio's performance compares to the

performance of an underlying benchmark, portfolio or index. TRK uses an

ex-ante approach, a forward-looking approach that is calculated across

1000 randomly generated scenarios, to calculating the tracking error.

Worst Case Scenario

Use WRST to analyze a portfolio‟s potential loss/gain

across a series of historical and theoretical market conditions. You can

apply a range of stress tests to a portfolio and display the ten worst

performing scenarios in descending order so that you can determine

effective strategies for minimizing loss.

Creating report on selected portfolio

Use PRTS to create a report on portfolio for a selected time period or

against the original cost. PRTS allows you to quantify your gains/losses

over a selected period of time and measures the portfolio's averages so

that you can make informed decisions about possible restructuring of your

portfolio

You can generate the report immediately or schedule it to run periodically

at a time of your choice.

Portfolio Real-Time Performance

Use PRT to track the intra-day performance of your equity portfolio

and compare it against a benchmark. You can analyze your portfolio

by different categories, including sector , industry or country to

determine the factors contributing to your performance and determine

where you should overweight or underweight against your benchmark.


Any Questions…?

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Bloomberg software and database basics