This Model Insight describes the new Barra Malaysia Fixed Income Model, which offers clients an enhanced view of the risk of ringgit-denominated bonds. We have re-estimated the sovereign and swap spread models using improved data sources. Backtests from 2007 to 2014 demonstrate the improved explanatory and forecasting power of the new model.

The  new BIM301 Sweden Credit model for non-government bonds offers a more granular view of risk for these assets. The model is similar in structure to the Barra credit factor models for other developed markets, including the US, UK, and EMU. We have added six sector-by-rating spread factors, each aligned with a particular segment of the Sweden credit market. In addition, we have developed a rating transition specific risk model for Sweden, similar in structure to the specific risk...