Our new framework links financial markets to macroeconomic factors, focusing on cash flows, discount rates, growth and inflation. It helps investors in their capital-market assumptions, risk management and asset allocation, using the MSCI Macro-Finance Model. 

Investors taking stock of the coronavirus fallout and recent market volatility have begun exploring tail-risk-hedging strategies as a way to protect against further drawdowns. What are the potential costs and benefits of hedging against tail risk?

This Model Insight describes the introduction of private asset models into the time-series-based RiskMetrics’ RiskManager. The framework consistently combines the Barra Private Asset Models, based on low-frequency private asset returns, alongside the high-frequency models of other asset classes.