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Capital Markets & Financial Instruments

Financial Instrument Valuation

Derivatives, structured products, and complex financial instruments valued for financial reporting and risk management.

500+

Instruments valued

$15B+

Notional value assessed

100%

Audit-ready

The Challenge

Financial instrument complexity

Complex instruments require specialized expertise in modeling, market data, and regulatory requirements.

Derivative Complexity

Options, swaps, structured products, and exotic derivatives require sophisticated modeling and market data.

Market Data & Inputs

Observable and unobservable inputs, market liquidity, and data quality significantly impact fair value conclusions.

Model Risk

Complex instruments require robust model selection, calibration, and validation processes.

Regulatory Requirements

ASC 820, IFRS 13, and banking regulations impose specific requirements for financial instrument valuation.

Our Approach

Rigorous valuation methodology

We combine quantitative expertise with deep understanding of financial markets.

1

Instrument Analysis

We analyze contractual terms, embedded features, and economic characteristics.

  • Term sheet review
  • Embedded option identification
  • Cash flow mapping
  • Risk factor analysis
2

Market Data Assessment

Rigorous evaluation of market inputs, liquidity, and data quality.

  • Observable input identification
  • Liquidity assessment
  • Benchmark curve selection
  • Credit spread analysis
3

Model Selection & Calibration

Appropriate model selection with robust calibration and validation.

  • Model appropriateness review
  • Parameter calibration
  • Model validation testing
  • Sensitivity analysis
4

Fair Value Hierarchy

Proper classification and disclosure under accounting standards.

  • Level 1/2/3 classification
  • Transfer analysis
  • Unobservable input documentation
  • Disclosure support
Use Cases

Instruments we value

Derivative Instruments

Options, swaps, forwards, and structured products

Fixed Income Securities

Corporate bonds, convertibles, and structured notes

Illiquid Securities

Thinly traded and restricted securities

Embedded Derivatives

Bifurcation analysis and valuation

Contingent Consideration

Earnouts and milestone-based payments

Debt & Warrant Valuation

Complex debt structures and warrant instruments

Need a financial instrument valuation?

Let's discuss your valuation needs and timeline.