Sponsored by ?

This article was paid for by a contributing third party.More Information.

Infrastructure and real estate: Advanced modelling techniques for pricing and valuations

Content provided by IBM

readalkj

Investment managers seeking stability are turning to non-capital market based assets

As capital market returns have become less stable over the last decade, increasingly investment managers have been looking to other markets to generate returns on their portfolios. This has led to an increased asset allocation into real estate, infrastructure and other non-capital market based assets. Aside from return generation, another perception is by adding these types of assets into a portfolio the investor is adding one which is “non-correlated” to the typical bonds and stocks capital market products in their portfolio.

From a risk management perspective the primary goal is help risk managers and investment managers answer the question of what will be the value of their portfolio at some future time horizon and what is driving this valuation. These questions can be answered by developing scenarios on the risk factors driving the pricing models of the securities both public and private in the portfolio. The scenarios on the risk factors can be correlated or non-correlated. 

Read/download the white paper

 

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here