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Fair Value for Other Illiquid Securities and Assets

 
Institutions investing in illiquid financial securities are required to document information used to fair value financial securities on their balance sheets. Although fair value is not a new concept and has been used by market participants, the adoption of Topic 820 (formerly FAS 157) has codified the steps to properly fair value financial securities in order to meet more stringent audit standards. Topic 820 (formerly FAS 157) made independent valuation a necessity for any entity with financial reporting requirements.
 
We have developed a series of state-of-the-art models to value complex, illiquid financial securities. While fair value is an exchange price concept, in cases where pricing is infrequent and idiosyncratic, these models help determine the fair value range and whether the price is consistent with other observable market factors.
 
Axiom Valuation’s senior leadership team has a clear understanding of the level of independent evidence for Topic 820 (formerly FAS 157) fair value that is required for auditors to support their opinion or for use in a fairness opinion, if the securities are being transferred. We use state of the art models along with observable market data to fair value the vast array of complex financial securities held by hedge funds and other institutions. Our work has met the requirements of the most demanding financial services clients and top auditing firms. We have the expertise and experience to provide excellence in fair value measurement for the full range of financial securities from simple to the most complex, including:
 

Side Pocket Transactions
Asset-Backed Securities
Mezzanine Debt
Distressed Securities
Auction Rate Securities
Credit Linked Notes
Exotic OTC Options

Mortgage-Backed Securities
Pass-Throughs
Convertibles
Collateralized Mortgage Obligations (CMO)
Cash and Synthetic CDO & CDO² Tranches
Structured Investment Vehicles
Complex, Illiquid Securities

 


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