MSCI Launches New Platform to Measure Liquidity Risk Across Asset Classes
Sep 16th 2013 6:17AM
Updated Sep 16th 2013 6:18AM
MSCI Launches New Platform to Measure Liquidity Risk Across Asset Classes
LiquidityMetrics Sets Standard for Liquidity Analytics
NEW YORK--(BUSINESS WIRE)-- MSCI Inc. (NYS: MSCI) , a leading provider of investment decision support tools worldwide, today announced the launch of LiquidityMetrics, the first commercially available tool for measuring liquidity risk across asset classes, delivered through RiskMetrics RiskManager.
"The 2008 financial crisis raised fundamental questions about liquidity risk," according to Roveen Bhansali, Managing Director and Head of Risk Management Analytics for MSCI. "The launch of LiquidityMetrics comes at a time of increasing regulatory demand for risk controls that make credit more vulnerable to liquidity shocks and when the industry at large is calling for greater transparency and sophistication. This provides the first consistent set of metrics to assess liquidity across asset classes."
Through its innovative methodology, LiquidityMetrics provides a robust description of asset liquidity and extends liquidity risk to incorporate the time, cost, and size dimensions. This translates into a single liquidity framework that can be used by clients across their organization to support their investment management, risk management and regulatory risk reporting requirements. LiquidityMetrics enables users to stress test the liquidity of a portfolio, measure market impact, transaction cost, liquidation horizon, amount available for liquidation and the liquidation value.
Continued Bhansali, "Liquidity measurement has long been neglected in risk management platforms. The profile of liquidity risk has steadily increased over the last several years and changed the long believed notion that it has a negligible effect on overall risk. Measuring true liquidity risk across asset classes has remained elusive because of the limitations of models and data scarcity. The LiquidityMetrics methodology enables users to measure liquidity risk on asset classes that otherwise would have been impossible to measure, providing a more comprehensive picture of risk."
MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools.
The company's flagship product offerings are: the MSCI indices with close to USD 7 trillion estimated to be benchmarked to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD real estate information, indices and analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; FEA valuation models and risk management software for the energy and commodities markets; and CFRA forensic accounting risk research, legal/regulatory risk assessment, and due‐diligence. MSCI is headquartered in New York, with research and commercial offices around the world.
As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on January 31, 2013
For further information on MSCI, please visit our web site at www.msci.com
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You cannot invest in an index. MSCI does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any investment or financial product that may be based on or linked to the performance of any MSCI index.
MSCI's indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. ("ISS") is a Registered Investment Adviser under the Investment Advisers Act of 1940. Except with respect to any applicable products or services from ISS (including applicable products or services from MSCI ESG Research, which are provided by ISS), neither MSCI nor any of its products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and neither MSCI nor any of its products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.
Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, ISS, FEA, InvestorForce, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor's. "Global Industry Classification Standard (GICS)" is a service mark of MSCI and Standard & Poor's.
Kristin Meza, MSCI, New York, +1-212-804-5330
Jo Morgan, MSCI, London, +44-20-7618-2224
Sally Todd | Christian Pickel, MHP Communications, London, +44-20-3128-8515
MSCI Global Client Service:
EMEA Client Service, +44-20-7618-2222
Americas Client Service, 1-888-588-4567 (toll free)/+1-212-804-3901
Asia Pacific Client Service, +852-2844-9333
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