Bloomberg Broadens MAC3 Risk Models to Span Public and Private Markets
Bloomberg announced this week a significant update of its Multi-Asset Risk Models suite, known as MAC3, extending coverage into private markets and alternative investments for the first time.
Previously recognised for its comprehensive coverage of global equities, fixed income, commodities and derivatives, MAC3 now incorporates dedicated models for private equity, private credit, real estate, infrastructure funds, hedge funds and liquid alternatives.
The expanded suite draws on Bloomberg’s data covering approximately 50,000 private funds to construct its new risk factors.
Jose Menchero, Head of Portfolio Analytics Research at Bloomberg, said the expansion addresses a longstanding gap in how institutional investors measure risk.
“Institutional investors are increasingly allocating across both public and private markets, yet risk is often measured in silos,” he said, adding that the updated models enable clients to manage risk seamlessly across their entire portfolio.
Bloomberg explained that MAC3 currently comprises more than 3,000 individual risk factors and supports a broad range of analytical functions, including risk attribution, performance attribution, stress testing and portfolio optimisation.
With the additions, Bloomberg believes investors can now forecast risk consistently across both public and private asset classes, capturing exposures across strategies, regions, sectors and key macroeconomic sensitivities such as interest rates, foreign exchange and volatility.
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