Bringing Transparency to Pricing and Valuations

摘要

Trends and develop-ments toward greater transparency in pricing and valuation functions had been increasing even before the onset of the credit crisis. At this point we are moving into a post-crisis period of financial reform, and we are seeing unprecedented levels of scrutiny and requirements for firms to show procedural consistency in their complex deal pricing and portfolio valuation activities. Recent surveys of participants inrnsecuritization markets indicate disclosure and pricing/valuation methodologies as key starting points for restoring confidence in structured finance markets (see chart, opposite page).