Valuations, analysis and the public sector
The Valuation Desk at Zanders is operated by consultants who have experience and expertise in the valuation of all kinds of financial products and the development of valuation and calculation models necessary for these products. The Valuation Desk fulfills our clients' need for an independent party that can, in their interests, advise them with its knowledge and experience in this field.
The principal responsibility of the Valuation Desk team is to determine and evaluate the market values of financial products in all the market segments. Another responsibility of the desk is to study the financial markets and analyze market developments.
The necessity of having evaluations of complex financial products carried out by recognized specialists is increasing. The main reasons include the increased complexity of valuing products since the financial crisis and subsequent market developments, as well as the evolution of accounting regulations which determine how the market value of financial products (in particular derivatives and loans) should be entered on the balance sheet and, possibly, the profit and loss account.
The Valuation Desk can assist its clients to compile their own valuations (or could do this for them entirely) or it can offer a second opinion on the valuations and reports provided by (external) counterparties. In addition, the Valuation Desk can provide a detailed explanation of how the valuation was reached and provide a comparison with previous (or other external) valuations.
The valuations and analyses provided by the Valuation Desk are independent. The Valuation Desk has no business relationship with the banks or accountants involved in the valuations. Consequently, the Valuation Desk works solely on behalf of the client. Our valuation reports are well-known to the large accountancy firms and are deemed reliable, accurate and independent.
Products and services
This section describes a selection from the products and services the Valuation Desk can offer:
- Ad-hoc valuations: These mostly relate to one-off valuations of financial products or portfolios of financial products. The valuation is then recorded in a report describing the product, the market conditions and the valuations details. In this context, the Valuation Desk makes use of formats it has developed itself. On the basis of the format, the reports can be tailored to a client’s individual requirements.
- Purchase/redemption derivates: This involves giving assistance when a financial derivative is being purchased/redeemed; an example is assisting in discussions with banks when swaps are being redeemed. Experience has taught us that this can frequently be profitable for our clients. During negotiations with a client’s counterparty, the Valuation Desk never has a mandate or the authority to act on behalf of the client.
- Periodic valuations: This involves the periodic valuation (monthly, quarterly or annual) of a financial product or a portfolio of financial products. This service can be offered to all sorts of clients. It includes providing a report describing the product, market conditions, valuation details and a comparison of consecutive periods. In this context, the Valuation Desk makes use of formats it has developed in-house. On the basis of the format, the report can be tailored to the client’s individual requirements.
- Consultancy: The Valuation Desk can offer advice on the financial products offered by counterparties; it can analyze and break down these products and provide an explanation of the constituent parts. In this context, the Valuation Desk can function as a center of knowledge for the client. If required, the Valuation Desk will discuss the valuations with accountants or counterparties.
- Hedge accounting: The aim of hedge accounting is to avoid fluctuations in the profit and loss account as a consequence of fluctuations in the market value of the financial products. This involves reporting on the effectiveness of the hedge and helping to interpret the relevant rules and regulations.
- Support when calculating margin calls: On the basis of agreements made by clients (with their counterparties), the Valuation Desk can calculate the amount a client will periodically have to pay or will receive on margin calls. This is usually calculated on a periodic basis.
- Training: The Valuation Desk offers training courses. The subjects covered by these courses include the valuation of financial products, the financial markets, or a course could even be tailor-made to meet a client’s specific wishes.
- Studying the financial markets: The Valuation Desk is continually working to improve its calculation and valuation methods on the basis of new methods in the market or new financial products. The Valuation Desk can also undertake specific studies for individual clients.
- Advanced modeling: The Valuation Desk can build all sorts of complex models tailored on the basis of valuations or complicated arithmetic methodology.
- Market data: The Valuation Desk analyses the market data made use of in various financial markets for both liquid and illiquid financial products. The maintenance, management and innovation of Zanders’ own day-to-day market information forms part of this.
Zanders’ general terms and conditions apply to all the services it provides.