The risk model powering BarraOne gives you a clear and detailed view of risk exposures across markets, asset classes, and currencies.
The development of the Barra Integrated Model begins with an analysis of individual assets from 56 countries to uncover the local factors that contribute to their risk.
These local market risk models, both equity and fixed income, are then combined into a single risk model utilizing a structural model to capture cross-market correlations. The resulting unified model - BIM - provides a structure for detailed risk decomposition of any type of portfolio, whether equity, fixed income or balanced..
BIM, combined with BarraOne, enables you to produce detailed exposure and risk analysis along Barra risk factors, or your own investment dimensions. These could, for example, include groups of styles, regions, sectors or valuation buckets.
Key Features & Benefits
- Depth and Breadth - Get global perspective and local detail from 59 emerging and developed equity markets, 49 fixed income markets, 24 commodity markets, 74 currencies and hedge fund styles.
- Integration - View risk across asset classes and markets, capturing the interaction between equity, currency, fixed income and hedge fund risk factors .
- Detail - Local risk factors tailored to the unique characteristics of each market enable detailed risk and exposure analysis for assets, funds and strategies.
- Precision - Apply the accurate, forward-looking view of risk provided by Barra's industry-leading multiple-factor approach.
To find out more about the Barra Integrated Model, please contact us.
