Patent ID: 7617143

Claim:
A computer-implemented method for calculating risk demand index values over a plurality of time periods, wherein the risk demand index values are indicative of market demand for risky assets, the method comprising: calculating, by a computer system, sub-index values over the plurality of time periods for each of a plurality of sub-indices, wherein the sub-indices comprise at least four of the following sub-indices: (i) a bond sub-index, wherein calculating the bond sub-index comprises calculating, by the computer system, a bond sub-index value based on a difference between a data value associated with an emerging market bond index and a data value associated with a government bond index; (ii) a commodity sub-index, wherein calculating the commodity sub-index comprises calculating, by the computer system, a commodity sub-index value based on a difference between a data value associated with a base metal index and a data value associated with a precious metals index; (iii) a bond/equity sub-index, wherein calculating the bond/equity sub-index comprises calculating, by the computer system, a bond/equity sub-index value that is based on a difference between a data value associated with a government bond index and a data value associated with an equity index; (iv) an equity sub-index, wherein calculating the equity sub-index comprises calculating, by the computer system, an equity sub-index value based on a difference between a data value associated with a cyclical stock index and a data value associated with a non-cyclical stock index; (v) a first credit sub-index, wherein calculating the first credit sub-index comprises calculating, by the computer system, a first credit sub-index value based on a difference between a data value associated with for a high yield debt instrument index and a data value associated with a high grade debt instrument index; (vi) a second credit sub-index, wherein calculating the second credit sub-index comprises calculating, by the computer system, a second credit sub-index value based on a difference between a data value associated with a government bond index and a data value associated with a high grade debt instrument index; and calculating, by the computer system, for each of the plurality of time periods, a risk demand index value based on the at least four sub-index values; and outputting, by the computer system, the risk demand index values, wherein the computer system comprises a processor and a computer readable medium that stores instructions for execution by the processor.