These local market risk models (which include equity, debt, derivatives, commodities, currencies, and alternative asset classes) are then combined into a single risk model to capture cross-market correlations. The resulting unified model - BIM - provides a structure for detailed risk decomposition of multi-asset class strategies, whether global or focused on a single market.

Using Barra Integrated Model, either through Models Direct or combined with BarraOne, clients can produce detailed exposure and risk analysis along Barra risk factors or client specified investment dimensions such as styles, regions, spreads, or issuer quality ratings.

Benefits and Features

Client can use BIM to help them:

• Understand the global perspective and local detail for equities from 65 emerging and developed countries. BIM also covers bonds and fixed income derivatives from 62 countries and covers 34 commodities, 155 currencies and hedge fund styles.
• View risk across asset classes and markets, capturing the interaction between equity, currency, fixed income, commodity, and alternative sources of investment risk
• Quantify exposure to the fundamental factors that drive risk in each market, using factors specific to the unique characteristics of that market
• Forecast risk over multiple long and short-horizons
• Use a consistent framework for portfolio monitoring, risk budgeting, risk forecasting and diversification