PORTFOLIO VALUATION

The current market conditions dictate the need for independent and supportable pricing, given the material impact that certain investments can have on the Net Asset Value on a mark-to-market basis. The introduction of FAS 157 has made independent valuation a necessity for any entity with financial reporting requirements. Investment management firms are heavily dependent on the validity and integrity of security pricing and portfolio valuation. Houlihan has decades of valuation experience providing companies with objective, independent and defensible opinions of value that meet accounting and regulatory requirements. We combine technical expertise with best practice modeling techniques to perform complex financial instrument and portfolio valuation.

We employ sophisticated methodology when it comes to pricing and use the most current mark-to-market pricing technology available. Our experience from both the audit and financial valuation world has established us as a service provider known for handling the most complex and hard-to-value securities.

Houlihan views the following types of situations as having the highest risk of being on the radars of valuation committees and audit firms:

QUARTERLY AND ANNUAL PORTFOLIO VALUATIONS

SIDE POCKET TRANSACTIONS

SPECIFIC INVESTMENTS

Mortgage-Backed Securities
Asset-Backed Securities
Pass-Throughs
Mezzanine Debt
Convertibles
Distressed Securities
Auction Rate Securities
Cash & Synthetic CDO & CDO² Tranches
Credit Linked Notes
Structured Investment Vehicles
Exotic OTC options
Complex, Illiquid Securities

Houlihan’s senior leadership team has a clear understanding of the level of independent evidence that is required for auditors to support their opinion, which overall leads to an efficient and more cost effective year-end process.