The Bloomberg Terminal At A Glance
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`The Bloomberg Terminal At A Glance
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`October 13 2011| Filed Under » Professional Education
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`If you currently work in the finance industry, or have aspirations of doing so, chances are you have
`heard of a Bloomberg terminal. This article will introduce you to one of the industry's most widely used
`sources for real-time financial information, and some of the functions the Bloomberg terminal is able to
`carry out. TUTORIAL: Economic Indicators
`
`Design and Layout
`The Bloomberg terminal, from the perspective of the end-user, is a Windows-based application, making
`it compatible with the popular Excel program, a very important aspect of the system for those in the
`finance industry. Bloomberg also offers users access to the application online and through mobile
`devices, via its Bloomberg Anywhere service. For portfolio managers and brokers, having the ability to
`access real-time market information from almost anywhere in the world, is an incredibly convenient
`and important advantage of a Bloomberg subscription. (For related, see Day Trading Strategies For
`Beginners.)
`
`The first thing most people notice when they sit down in front of a Bloomberg terminal, is the
`keyboard. Although it is similar to a standard desktop keyboard, Bloomberg terminals substitute the
`function keys on a standard keyboard (i.e., F4) with market sector keys, such as CORP (corporate
`debt), EQUITY (equity shares) and CURNCY (currency markets). Additionally, Bloomberg keyboards
`incorporate color coding to make use more intuitive, with market sectors colored yellow, the Cancel
`and Log-in keys colored red, and the common “Go” keys (i.e., Enter) colored green.
`
`http://www.investopedia.com/articles/professionaleducation/11/bloomberg-terminal.asp
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`6/26/2012
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`The Bloomberg Terminal At A Glance
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`Image courtesy of Wikipedia
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`For those still relatively new to the terminal, let's take a look at some of its capabilities:
`
`News
`Although most people think about real-time financial market data, namely security values, when discussing
`Bloomberg, the Bloomberg terminal also offers real-time news updates from a multitude of websites, tickers and w
`By simply typing "NEWS" in the search bar, a user will be provided with the most recent financial, and non-financia
`news headlines from around the world. Additionally, users can access media outlet websites, such as the New Yo
`Times. Bloomberg users can also search for archived news stories or search by subject.
`
`News Feed Interface
`
`Equities
`When searching for publicly traded equity shares, Bloomberg allows users to search by name, exchange, country
`other such topics. Additionally, the equity menu allows users to view historical pricing on a stock (see image below
`read a description of the business, view any outstanding corporate debt the company may have, and view analyst
`reports and estimates for the stock, along with dozens of other features. This menu also allows users to search for
`indexes such as the S&P 500 or Russell 2000. (For related reading, see What's The Difference between the Dow
`Jones Industrial Average And the S&P 500?)
`
`http://www.investopedia.com/articles/professionaleducation/11/bloomberg-terminal.asp
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`6/26/2012
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`The Bloomberg Terminal At A Glance
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`Equity Menu
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`Bloomberg also allows clients to compare and contrast equities side by side, offering a comparative analysis of an
`two equities. Comparison fields include fundamental analysis, historical ratios and technical charting. In addition to
`comparative functionality, Bloomberg also includes screeners, allowing clients to screen for stocks using a multitud
`metrics. After running a screen, users can also filter results and create custom equity sets, which allow for a quick
`reference of real-time results for a portfolio of equities; very handy for traders, brokers and other such financial
`professionals.
`
`Fixed Income
`Much like with equities, Bloomberg allows users to search for real-time data on fixed income securities. This includ
`corporate debt, municipal bonds and government bonds. Similar to the historical price screen for equities, we are a
`to view historical day-over-day changes in security values, along with implied yield-to-maturities, for any given day
`Additionally, credit ratings and cost of capital information is available for fixed income securities. (Exposure to diffe
`asset classes is required to generate income, reduce risk and beat inflation. For more, see How To Create A Mode
`Fixed-Income Portfolio.)
`
`American Express—Savings
`
`Derivatives
`One of Bloomberg's best features is its derivatives capabilities. Not only can clients find real-time values for securi
`such as exchange traded options, and futures contracts, such as the active contract for WTI, but Bloomberg also
`allows users to value hard-to-price derivatives. For OTC options, for example, Bloomberg lets users customize the
`option valuation models, to come up with an estimated value. A user can decide to value an OTC option on the S&
`500 using the continuous Black-Scholes model, using historical volatility (see image below), for example. Once pri
`users can view the values of the Greeks associated with the option in question, to verify that their price estimate is
`line with those expectations.
`
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`6/26/2012
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`The Bloomberg Terminal At A Glance
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`Derivatives, Using Historical Volatility
`
`Another function popular with large banks and institutional investors, is the Swap Manager tool. Swap Manager is
`highly customizable swap pricing utility, which allows users to input the parameters of a swap agreement and com
`with an estimate for the value of that swap, at any given date in time (see image below). Additionally, clients can v
`underlying swap curves to determine that the underlying inputs match expected values. As the swap market contin
`to grow, the Swap Manager tool will no doubt gain more and more popularity with analysts. (Find out what makes
`currency swaps unique and slightly more complicated than other types of swaps. For more, see Currency Swap
`Basics.)
`
`Swap Manager Tool
`
`Foreign Exchange
`With the FX market being a 24-hour marketplace, Bloomberg is the ideal tool for FX participants. Users can view r
`time rates for dozens of currencies, along with basis curves for most pairs, and rate information for a given currenc
`Additionally, with Bloomberg's ability to capture real-time news and economic updates, its FX capabilities are a ve
`powerful tool for those trading in the foreign exchange market. (For related reading, see Forex Basics: Setting Up
`
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`6/26/2012
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`The Bloomberg Terminal At A Glance
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`Account.)
`
`The Bottom Line
`We've only just begun to scrape the surface of the Bloomberg terminal's capabilities in this article. Several online
`tutorials are available to those interested in learning more, including those offered directly from Bloomberg itself. A
`well, more and more Colleges and Universities are offering Bloomberg courses, to help students gain early exposu
`to the most widely used tool for real-time financial data in the world of finance.
`
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`6/26/2012
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