No quick fix for fiduciaries on asset valuations

The collapse in prices associated with a number of esoteric assets during the global financial crisis has led regulators, investors and other parties to examine new ways to calculate asset values and potentially reduce dependence on a few major dealers. However, it is not yet clear whether investors are ready to pay for something they have long assumed part of the service. Joti Mangat reports

Asian exposure to assets that suffered massive liquidity and pricing shocks after the bankruptcy of Lehman Brothers in September 2008 remains significant, although on a scale smaller than in the US and Europe. Both institutional and private wealth investors are still sitting on inventories of esoteric and illiquid assets spanning structured notes, structured finance and distressed debt. Moreover, while financial institutions may have received regulatory and accounting relief during the market