February 1, 2010
OTC Derivatives Valuations – The Quest for Confidence
Investors, and the fund managers they invest with, have this year turned a sharper eye toward valuations. The spotlight is firmly focused on OTC derivatives valuations, due to their complex combination of multiple pricing models and data sources. Transparency into the price determination process is now a requirement for sophisticated investors. References to “valuation policies”, “manager marks” and “single source pricing” are now routine during investor due diligence and when making investment allocation decisions.
