What is Bloomberg?

By Robert Posillico | December 1, 2022

If you are interested in a career in financial services, you have likely heard of Bloomberg. Bloomberg is a high-tech, market-moving, data-driven company deeply connected with financial markets in the US and around the world. So what does Bloomberg do? Their business has several lines, but it is all centered around data. Data is the driving force behind many decisions in finance, but unlike many other institutions, Bloomberg doesn't make clients make decisions directly. Instead, they provide them with all the data and information they need to make the best decision themself. They do this several ways through their own news channel, radio station, and podcasts, but most notably through the Bloomberg Terminal.

The Bloomberg Terminal is the central part of Bloomberg's business and is an essential part of finance today. It allows users, whether they are large investment banks, hedge funds, or small startups, to have a steady stream of real-time data to make quick and confident decisions. This is accompanied by live updated news and Bloomberg's own market research and analysis all in one place. The terminal came about in the 1980s as Michael Bloomberg sought to bring transparency to the fixed-income market. Since then, it has grown to over 300,000 users worldwide and has the functionality to bring transparency to not only fixed income but also equities, foreign exchange, rates, real estate, commodities, and much more. A notable function of the terminal is Instant Bloomberg (IB). This is a chat functionality that connects sell-side and buy-side players in finance and is among the most widely used communication tools in finance. Beyond data and connectivity, the terminal is also widely used for portfolio management, along with order management and execution abilities.

Bloomberg Terminals don't come cheap as they are a premium product with a premium price of over $20,000 per year. Our school has one terminal on campus; however, it is reserved for senior thesis projects and the school's investment fund, HCSIF. If you are interested in a finance career, I would suggest you learn more about Bloomberg, as you will likely find yourself sitting in front of a terminal at some point.

Edited by Rudy Antonios