HUS + GEXi Methodology
Technical description of the proprietary methodologies of the Rydeen platform. This document is intended for institutional partners and qualified investors.
HUS - technical description
Heisenberg's uncertainty principle establishes that a particle's position and momentum cannot be measured with simultaneous precision. In the bond market, the analogy is direct: observable yield and future value trajectory are inversely precise quantities.
HUS weighs four normalized variables: price volatility, rating drift, market liquidity and geopolitical exposure via GEXi. Result on a 0–100 scale - the lower, the lower the aggregate uncertainty.
The investor filters the Frankfurt Börse universe by the HUS range compatible with their profile.
HUS - Index Reading Table
| HUS Range | Reading | Typical occurrence | Implication for the investor |
|---|---|---|---|
| 0 – 15 | Minimal uncertainty | AAA sovereigns, supranationals (EIB, KfW). HUS 5 exists - rare, requires simultaneous excellence across all components | Suitable for conservative profiles and regulated mandates |
| 16 – 40 | Moderate uncertainty | Investment grade corporates, top-tier European banks - most populated range in the Frankfurt Börse universe | Core of institutional portfolios |
| 41 – 65 | High uncertainty | High yield, issuers under rating review, moderate geopolitical exposure via GEXi | Requires complementary analysis - higher potential return, proportional uncertainty |
| 66 – 100 | Critical uncertainty | Deteriorating issuers, severe illiquidity, high GEXi. HUS 80+ occurs - asymmetric risk alert, not a purchase prohibition | Conscious decision with hedge or explicitly speculative profile |
GEXi - technical description
GEXi incorporates geopolitical and exogenous factors that affect securities beyond issuer data: central bank policy, exchange rate variations and political risk. Fed by ECB, Eurostat and BIS - variables no conventional bond model integrates systematically.
GEXi - Index Reading Table
| GEXi Range | Reading | Active factors | Impact on analysis |
|---|---|---|---|
| 0 – 15 | Minimal exposure | Stable geographies, ECB/Eurozone, predictable regulatory environment | GEXi multiplier near 1.0 - minimal impact on aggregate HUS |
| 16 – 40 | Moderate exposure | Dependence on external macro variables, exchange rate or regional monetary policy | Periodic review recommended - monitor ECB and Eurostat feeds |
| 41 – 65 | High exposure | Active geopolitical events, volatile exchange rate, regulatory risk under monitoring | GEXi weight raises composite HUS - assess impact on final score before allocating |
| 66 – 100 | Critical exposure | Active geopolitical conflict, severe currency instability, immediate sovereign risk | Critical GEXi dominates composite score - mandatory stress test before any allocation |
Intellectual Property Registration
HUS and GEXi are proprietary methodologies of HYPERCREATIVE DBA, registered with INPI under Law 9,609/98 - patents in the USA and Europe pending.