New State Street Service Provides Investment Indicators from Media

State Street Corporation announced the launch of State Street MediaStats Central Bank Indicators and State Street MediaStats Thematic Indicators - two new quantitative investment insights derived from digital media. The new indicators collect unstructured data from tens of thousands of curated media sources to quantify market behavior with respect to price and risk across interest rate yields and foreign exchange. “The tone of central banks influences the way investors behave,” said Rajeev Bhargava, head of the Investor Behavior Research Team at State Street Associates. “Academic research shows that monetary tones may play a vital role in asset pricing and help anticipate changes in yields. Our newest indicator scours traditional media, social media, and company communications to measure aggregated monetary tones of media coverage for a specific central bank—and ultimately, gauge the degree of hawkishness in its monetary policies. By aggregating monetary tones in media coverage, we are now able to offer our clients insights on global currencies and yields, and broad macroeconomic trends.”