Introduction to Bloomberg - PowerPoint Presentation

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Introduction to Bloomberg

Elly BringazeUniversity of VirginiaMcIntire School of CommerceClass of 2015

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Introduction

Elly Bringaze, UVA Class of 2015 Degree in Finance, Minor in EconomicsSpent two years working at JPMorgan in New York CityCurrently working as a Research Associate with LSU’s Economics Policy & Research GroupIn two weeks, will be joining an impact investment start-up in Boston called Social Finance

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Why use Bloomberg?

“Don’t work hard – work smart.”- Jamie Dimon

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What is Bloomberg and why is it useful?

Windows-based application – compatible with Microsoft ExcelProvides instant access to real-time financial informationSecurity prices

Returns

Financial data

Company information

Covers most publicly available securities

Equity: US

and international stocks

on local exchanges and depository receipts

Fixed

Income: corporate, municipal and sovereign bonds Publicly traded funds: ETFs, index funds and mutual fundsDerivatives: options, futures, forwards, swapsForeign exchange prices

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The Bloomberg Keyboard

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How to Use Bloomberg

FUNCTIONS: Processes for analyzing information and pulling data

SECURITIES: Securities (stocks, bonds, currencies, contracts) available to analyze in Bloomberg

SEARCH: Search function for the entire

Bloomberg database

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The HELP function in Bloomberg

“HELP”  Enter

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How to find a security in Bloomberg

Every security ticker must be followed by an asset class description:Stocks: “XXX ABC EQUITY” where XXX is the ticker and ABC is the country or exchange code where the security is listedUS: “XXX US EQUITY”Hong Kong: “XXX HK EQUITY”

London: “XXX LN EQUITY” or “XXX LI EQUITY”

Corporate Bonds: “XXX CORP” where XXX is the ticker of the company

Government & Sovereign Bonds: “GOVT”

Commodities & Contracts: “COMDTY”

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How to find a security in Bloomberg

For the purposes of this seminar, we are going to use mostly U.S. equity examples. However, for

foreign

companies,

there are different asset class

descriptions depending on the exchange where the security is traded.

For example,

Samsung is

traded on multiple international

exchanges

“Depository Receipt” allows a foreign company to trade on a local exchange

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How to find a security in Bloomberg

U.S. Stocks:Type in “XXX US EQUITY” where XXX is the 3 or 4 letter company tickerFor example, “AAPL US EQUITY” is the Apple equity security Corporate Bonds:Type in “XXX Corp” where XXX is

the 3 or 4 letter company

ticker

A list of the various bonds and issues in the market will come up

For example, typing in “AAPL CORP” yields this list:

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How to find a security in Bloomberg

Sovereign/Government Bonds:Type in description of the government security you are looking for and scroll through the securities menu that pops upBonds will have “Govt” after name and contracts will have “

Comdty

”

For example, typing in “US TREASURY” yields this list:

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How to find a security in Bloomberg

Mutual Funds or Exchange Traded Funds (ETFs): Type in ticker of the fund you are looking for followed by the exchange and the asset class For example, “SPY US EQUITY” for the SPDR S&P 500 ETF

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How to find a security in Bloomberg

Stock, Fixed Income or Commodity Indices:Type in name of the index followed by “INDEX” For example, “MSCI EAFE INDEX” for the MSCI EAFE Index

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Basic Bloomberg Functions: NEWS

Type in “NEWS” 

ENTER

for the

most updated financial market news stories of the day

and access to top-level analysis

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Basic Bloomberg Functions: CN

Type in “CN” 

ENTER

to search for news on a specific company

Click on “Search News” tab

Type in company ticker “AAPL”



ENTER

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Basic Bloomberg Functions: DES

“AAPL US EQUITY”  ENTER



“

DES” 

ENTER

Provides a description of any

security

and/or company details

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Basic Bloomberg Functions: COMP

“COMP”  ENTER

Allows you to quickly pull and compare returns of a few securities, funds or indices over a single time-period

Different variations of COMP allow you to customize return periods

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Basic Bloomberg Functions: COMP

“COMP”  ENTER

Type “AAPL US EQUITY” into Security Section

May automatically populate with the stock’s standard benchmark(s)

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Basic Bloomberg Functions: COMP

Can change date range and frequency of calculation at top of screenDaily: allows you to create a custom date range

Monthly: restricts you to end-of-month periods

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Basic Bloomberg Functions: COMP

Different return calculations: Price change: pure change in stock price over the 5 year period

Total return:

includes effect of stock price change and dividends

Annual

E

q

:

annualized return per year over the course of the 5 year period

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Basic Bloomberg Functions

News:NEWS: Overview of newsTOP: Top newsCN: Company newsMA: Mergers &

Acquisitions

Company Fundamentals:

ANR: Analyst recommendations

BIO: People profiles

MGMT: Company

Management

BI: Bloomberg Intelligence

E

quity Analysis:DES: Security descriptionFA: Financial analysis

ERN: Earnings

history

EE: Earnings e

stimates

SI: Short i

nterest

DVD: Dividends and

stock splits

Fixed Income Analysis:

ISSD: Bond issuer description

CRPR: Credit ratings

DES: Security description

Markets:

IMAP: Intraday market map

WEI: World

equity indices

WB: World

bond markets

MOV: Equity

index movers

FXC: Currency

rates matrix

TRA: Total r

eturn analysis

COMP: Comparative return analysis

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Bloomberg Excel Templates: Why use them?

Templates allow you to pull information easily into an Excel format – makes you EXTREMELY efficientUseful for pulling large quantities of dataMultiple years of returns/prices

Data on multiple securities at once

Extensive company and/or security information

Data can be downloaded, saved and then analyzed

You’ll spend less time gathering the data and more time analyzing it and thus, providing more useful contributions

to your

team

Various templates designed for specific purposes

and asset classes

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Bloomberg Excel Templates: XLTP

“XLTP”  ENTER

= your new best friend!

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Bloomberg Excel Templates: XSTD

“XLTP XSTD”  ENTER Useful for pulling security prices, returns, other statistics on multiple securities over long periods of time

Also useful for

quickly

pulling monthly/daily economic data points such as inflation, interest rates or GDP*

Examples of usage:

You want to calculate an average oil price in the US for a specific period:

Can pull daily WTI oil prices throughout history and average them

You want to compare returns of multiple stocks in the industrials sector throughout various market cycles

Can pull monthly returns of different stocks over their entire history and examine certain time periods (i.e. Tech Bubble, early 2000’s recession, Great Recession)

You want to determine how Technology/Growth funds performed vs. Value funds during and after the Tech Bubble Can pull month returns of a group of mutual funds and/or ETFs in late 1990’s and then early 2000’s following the burst of the bubble

*There are

public economic

databases with this information available as well.

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Bloomberg Excel Templates: XSTD

Enter security codes with asset class description in left column:

Use Settings button to select statistics and date range:

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Bloomberg Excel Templates: XCS4

“XLTP XCS4”  ENTERUseful for getting a very quick snapshot of a company without having to perform detailed analysis

Provides

high level

financial,

operational and market

information

If

you’re looking for something more detailed, use

“XLTP XIDA

” Examples of usage:You’re about to walk into a meeting or presentation and realize that you need to memorize a certain statistic on a stock that you will be discussing. You’re told that you have to hop on a client call in five minutes to discuss a stock that the client is interested in buying. You want a quick way to learn as much as possible about the company to prepare for the call.

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Bloomberg Excel Templates: XCS4

Type in company ticker



ENTER

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Bloomberg Excel Templates: XIDA

“XLTP XIDA”  ENTER Useful for taking an in-depth look at one company

at

a time

Provides

detailed financial

,

operational and market

information along with peer comparisons, analyst ratings, etc.

Examples of usage:

You’re asked by a superior to spend the day researching a specific stock and want to learn as much as possible about the company. You were on the phone with a client and he or she asked about a specific stock in the portfolio that you are unfamiliar with. You used DES function to give the client a quick overview of the company, but planned to follow-up with more

information

.

You can use XIDA to put together a detailed analysis of the stock and company’s fundamentals to send to the client.

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Bloomberg Excel Templates: XIDA

Type in company ticker



ENTER

Numerous tabs of detailed information

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Bloomberg Excel Templates: XIDA

Create a custom peer index to compare Apple against:Type in company tickers of peers followed by asset class description

After entering peers, click Calculate Index

Select time period over which you would like to evaluate performance

Go to the “Indices” tab

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Bloomberg Excel Templates: XCS

“XLTP XCS”  ENTER Useful for comparing companies to each other across a number of metrics all at

one time

Examples of usage:

Your boss is interested in learning more about the state of the automobile industry. You’ve already done some introductory research on the sector, but want to provide him with an overview of the top competitors in the space.

You use the template to analyze the top

automobile

companies in the

world and compare them on

financial, operational and market

data points.For example, which company had the largest sales in the last fiscal year?

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Bloomberg Excel Templates: XCS

Can use Bloomberg’s list of peers but also create a custom list

Be careful of currency differences for foreign companies

Type in company tickers of Ford’s peers followed by asset class description



ENTER

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Bloomberg Excel Templates: XNRG

“XLTP XNRG” 

ENTER

Useful for taking a look at the Energy sector –

integrated

oil companies, E&P companies, midstream/pipeline companies

Provides in-depth operational and financial information on the company itself but also production estimates, commodity price

forecasts and analysis

Examples of usage:

You’re asked by a superior to spend a week looking into the energy sector and specifically, how companies are reacting to and performing in the recent low oil price environment You use the template to examine financial ratios and data on top energy companies around the world and aggregate production and commodity price data to create a summary of the sector

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Bloomberg Excel Templates: XNRG

Click “View Oil & Gas Estimates” for detailed production data

Provides detailed production data and future estimates for that specific company

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Bloomberg Excel Templates

Equity Analysis: XANC: Analyst recommendation chart XEGM: Company estimates revisions and guidance monitorXDIY: Bloomberg Equity Template BuilderXIDA: In-depth company analysis

XCS4: Company snapshot

XCS: Peer comparison

XGEO: Portfolio Geographical Fundamentals

Fixed Income Analysis:

XYAS: Price/Yield/Spread calculator

XIHZ: Total return calculator

XFIC: Fixed income

comparables

analysisXCRD: Credit evaluation XCCA: Company credit analysisXPCC: Peer credit comparison

Funds and ETFs

XMFF: Fund flows custom

analysis

XIWS: Index weightings by

sector

Commodities:

XCPF: Commodity price forecast

XEIA: EIA oil snapshot

XCCM: Commodity correlation matrix

XNRG: Energy company snapshot

International:

XADR: ADR premium/discount monitor

XMFX

: Spot and cross rates

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Pulling it all together…

Scenario: Your boss gives you a very vague task: “I’m thinking about buying Apple in one of my client portfolios. Put together an analysis of the stock and its recent performance.” Without Bloomberg, you’d be stuck using Yahoo Finance and WSJ websites, pulling metrics one-by-one

Bloomberg provides you with a wide array of tools to use and perform a robust and comprehensive analysis of

Apple

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Pulling it all together…

XIDA: Use to read extensively about AAPL operations, examine financials, identify key industry peers and compare to custom peer indexXSTD: Use to pull monthly returns of AAPL stock, Tech Sector Index and

company’s closest

peers

XCS:

Use to compare AAPL to

peers on financial, operational and market ratios and other metrics

All together: You’re able to learn as much about AAPL as possible, compare

the stock’s returns

to multiple benchmarks and evaluate

the company against industry peers

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Highly recommended books

Financial Crisis:The Big Short – Michael Lewis (mortgage market’s role in the financial crisis, inspired the movie)

Boomerang

–

Michael Lewis (international effects of financial crisis

)

Too Big to Fail –

Andrew Ross

Sorkin

(detailed account of crisis) Hedge Funds:The Quants – Scott Patterson (quant hedge funds)When Genius Failed – Roger Lowenstein (story of a hedge fund failure)Private equity & Venture Capital:The

Innovation Blind Spot –

Ross Baird

(interesting theories about innovation in the future)

Barbarians at the Gate –

Bryan

Burrough

, John

Helyar

(detailed account of the takeover

of Nabisco

)

Trading & Markets

Flashboys

– Michael Lewis (high frequency trading)

Liar’s Poker

– Michael Lewis (1980’s bond market)

Start-up Stories:

Digital Gold –

Nathaniel Popper (Bitcoin explained)

Shoe Dog –

Phil Knight (founder of Nike)

The Third Wave –

Steve Case

(AOL and future of the internet)

The Accidental Billionaires –

Ben

Mezrich

(Facebook, book that inspired

The Social Network

movie )

Creativity Inc. –

Amy Wallace, Edwin

Catmull

(Pixar founding story)

Statistics

:

Moneyball

–

Michael Lewis

(fun story about statistics

in baseball)

Fooled

by Randomness –

Nassim

Nicholas

Taleb

(role of randomness in life)

The Black Swan –

Nassim

Nicholas

Taleb

(unlikely market events)

Economics:

Freakanomics

–

Stephen Dubner, Steven Levitt (fun intro to economics)

Superfreakanomics

–

Stephen Dubner, Steven Levitt (the sequel)

Industries

of the Future –

Alec Ross (discussion of industries that will drive the future economy)

Hall of Mirrors –

Barry

Eichengreen

(draws comparisons between Great Depression and Great Recession)

Thinking Fast and Slow –

Daniel

Kahneman

(behavioral economics / psychology)

Management & Career Development:

Lean In –

Sheryl Sandberg

(women in the workforce

)

Give

and Take

– Adam Grant

(how to analyze/utilize your workplace style)

The Originals –

Adam Grant (what makes companies/people successful)

The Outliers –

Malcolm Gladwell (theory of 1,000 hours)

Personal

Development:

Option B

– Sheryl Sandberg, Adam Grant (resilience, bouncing back)

Emotional Intelligence

– Daniel

Golerman

(how to engage with people)

Quiet

– Susan Cain (great book for introverts like me!)

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Great Finance and Economics Podcasts

Planet Money – NPR How I Built This – NPR What’s News – WSJ The Future of Everything – WSJ Freakanomics Radio

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Top Financial Publications

The Wall Street JournalThe Financial TimesBarron’s Bloomberg

Businessweek

The Economist

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Any questions?

Other Uses of Bloomberg Other Finance programs:FactsetMorningstar

Different career paths within Finance:

Investment Management

Investment Banking

Commercial Banking

Private Equity/Venture Capital

Hedge Funds

Academia/Research

What is it like to work in New York:

Is it really like The Wolf of Wall Street? The short answer: no!

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Contact Me

Elly BringazeInvestment Associate at Social FinanceEmail: ellybringaze@gmail.com

Linkedin

:

https://www.linkedin.com/in/elly-bringaze-346160127/

Please feel free to contact my for any reason- resume reviews, career advice, etc.