Fair Value of Loans: Solutions for Alternative Investment Managers and Banks – A Webinar

Axiom Valuation Solutions and Axiom Valuation Solutions Europe (AVSE) present a webinar exploring the global loan market, specifically looking at Axiom’s approach to determining fair value of a loan, default probabilities of loans and the recovery value of loans.

Objective:  This webinar will give the participants a greater understanding of approaches to valuing loans in light of the new AIFMD requirements.  It will also demonstrate straight forward methodologies for looking at default probabilities and recovery values of loans with implications for loss reserves for loans.  This should be of interest to Alternative Investment Managers holding loans as well as banks who are making loans.

July 22, 2013, is a date that every Alternative Investment Fund which does business in Europe should be aware of. This is the date that the Alternative Investment Fund Managers Directive (AIFMD) went into effect. The Directive establishes common requirements governing the authorization and supervision of any Alternative Investment Fund Manager who is located in the European Union or sells to clients in the Union.

The webinar will cover the following topics:

  • Fair Value of Loans:  A Case Study
    Dr. Stanley Feldman, CEO and Founder of Axiom Valuation Solutions
  • Default Probabilities and Recovery Values of Loans   Dr. Thomas Klepsch, Vice Chairman of the European Bond Commission and Senior Advisor to Axiom Valuation Solutions Europe (AVSE)

Click Here to Register

Letter to the Editor: Wall Street Journal: Auditors of Hedge and Private Funds are Not Validating NAVs

“Sophisticated institutional investors still insist on believing in the Tooth Fairy that can somehow miraculously provide market beating returns for everyone. May be that is the biggest crime of all” (Behind the High- Pressure Hedge Fund Culture” (WSJ, July 25, 2013)).   Chasing after returns is not greatest crime of all. Many hedge funds have the capacity to exploit inefficiencies in the market and do so. What is a shame is that endowments, pension funds and foundations in addition to their agents do virtually no due diligence as to whether the returns and NAVs are fraudulently reported.  Investors believe that when hedge funds provide audited financials to them that the NAVs shown have been vetted by the auditors. They have not. Hedge fund auditors “presume” the NAVs are correct and audit whether the investment process used by the manager to establish the NAVs is reasonable.  This is a very low standard.  We know this because Madoff feeder funds were blessed by reputable audit firms. The consultants offer performance evaluation services but the returns used in this analysis are self-reported and for all we know fraudulent.  The crime is that investors live under an illusion that they are covered while the auditors and consultants reinforce the fantasy since it is not in their interest to do otherwise.  The fact remains that there are analytics in place that investors can use to test whether a manager is a Madoff clone.  The fact that the SEC is currently using its data mining ABI (Aberrational Performance Initiative) to ferret out fraudulent managers should be enough of anW incentive for investors to finally wake-up.