Bloomberg Intelligence Research, Thoughts?

I'm currently an equity research associate covering the technology sector for a boutique. With an industry that's consolidating and the upcoming MIFID regulation, it looks like Bloomberg is positioning themselves to provide investment value with their own in-house research. The research arm, Bloomberg Intelligence was created around 2008 post-financial crisis and is composed of former sell-side/buy-side analysts.

Given they're not a broker-dealer and its precarious position to not compete with their clients, I assume the value of their research is to drive terminal sales. I notice a lot more of their content displayed on my terminal screen. With where the industry is heading, just wanted to get the community's opinion on Bloomberg's research, and does this look like a sustainable model or are my chances better off at a bulge bracket ?

 

Not only is it a sustainable model, it is the perfect solution to the MIFID regulation for any firm that chooses to play it safe. By this, I mean that firms are going take a long, hard look at what they're spending on research and take meaningful steps to ensure that they are able to justify and defend these costs to all stakeholders. Given the degree of commoditization of market research, I believe there will be a lot of 'fat-trimming' throughout the industry in the coming years (it is already happening). Now is the time for every analyst to prove their worth -- especially on the sell side. That is my opinion.

 

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