Complex securities are rich in derivative-like features, requiring a deep understanding of financial economics and the ability to apply sophisticated stochastic valuation techniques. In the wake of the 2008 global financial crisis, financial reporting requirements related to complex financial instruments have continued to increase along with regulatory scrutiny on valuation-related conclusions.
The Complex Securities team possesses the specialized experience, financial modeling knowledge, and quantitative skills necessary to assist clients in understanding, structuring, and valuing complex financial securities for financial reporting, tax, transaction support, or strategic planning purposes. Our team of specialists has a deep understanding of the requirements and expectations of investors, auditors, and regulators to help address client needs related to complex financial instruments. The Complex Securities team has a wide range of valuation experience, including, but not limited to, valuing the following:
- Equity instruments, such as warrants, preferred shares, and employee compensation awards
- Fixed income securities, such as corporate bonds, interest rate swaps, and credit derivatives
- Hybrid instruments, including convertible/participating preferred stock and contingent and convertible debt
- Deal structures, including contingent consideration and put/call arrangements
- Guarantees, forward contracts, carried interest, asset retirement obligations, embedded derivatives, commodity derivatives, and market risk insurance benefits
- Synthetic credit rating and expected credit loss analyses
- Structured products, including CDOs, CLOs, RMBS, CMBS, ABS, and ARS.
- Complex Security and Financial Instrument Valuation Services
- Valuation Insights - Revisiting Volatility Assumptions under ASC 718
- Equity Compensation: Valuation considerations for companies with complex capital structures
- Contingent Consideration - Accounting and Business Considerations
- Fixed Income Valuation Services
- Market Implied Expected Credit Losses