The price is right
Consensus on the input assumptions that financial institutions use to value structured finance securities is crucial if the market is to reach a universally agreed method of pricing these impaired assets. By Peter Jones of Standard & Poor's
Trying to validate internal assumptions around structured finance pricing is one of the central challenges for global institutional investors in today's uncertain and credit-stressed market environment. While most structured finance market observers accept that secondary market pricing, where it exists, is not reflective of the current performance of the pools of mortgages or loans underlying many of the structured finance assets, achieving consensus on inputs into valuations is key to
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