The urgent issues associated with the pricing and valuation process of portfolios of assets are foremost in the minds of senior executives.
A new report from Aite Group, LLC examines industry challenges, issues and business considerations associated with the pricing and valuation process for portfolios of financial assets.
With market volatility and dislocations wreaking havoc on portfolios worldwide, pricing and evaluating assets properly has taken on added urgency. Based on Aite Group interviews with a number of market participants, it is apparent that organizations are aware of the increasing role valuation risk-related functions play within an organization. Indeed, senior IT executives have expressed to Aite Group that five of their top eight 2009 IT initiatives are valuation risk-related. Senior managers must consider a number of factors when reviewing and improving their own pricing and valuation infrastructures in order position themselves to properly address the concerns of investors, auditors, regulators and clients.
"The marketplace, internal constituents and regulators are demanding that full transparency and independent assessments become the new ‘business-as-usual’ approach to determining the risk or value of each portfolio," says John Jay, senior analyst with Aite Group and author of this report. "In order to address these concerns, firms will need to maintain and update market, security and collateral data as well as continually review pricing and evaluation processes to ensure output integrity and consistency."
This 13-page Impact Note contains four figures and two tables. Clients of Aite Group’s Institutional Securities " Investments service can download the report by clicking on the icon to the right.
Related Aite Group Research:
* Game-Changers: New Financial Products and Platforms for Uncharted Territories
* RISK Is Not Just a Four-Letter Word: Buy-Side Multi-Asset Class Risk Analytics
* CDS Central Clearing: Look Both Ways Before Crossing
* U.S. Electronic Fixed Income Trading Platforms: The World Ain’t Standing Still
* The Securitization Endgame: ABS Collateralized Debt Obligations
