Value

Insight into the key factors behind value development

With its own valuation desk, Zanders provides an independent and reliable service to its clients. In short, the valuation desk determines and validates the market values of financial products, such as derivatives and loans, for all market segments. Rogier Galesloot, who… read more

Hedging the unhedgeable longevity risk

Unexpected increases in longevity

Considering the illiquid nature of these swaps, along with the imbalance between the buyers and the sellers, these are still early days for this market

Unexpected increases in longevity raise the costs for life insurance companies. Longevity risk occurs when people… read more

Funds Transfer Pricing

Principles for implemeting an FTP framework

The basic idea of transfer pricing in financial institutions is to allocate costs and benefi ts equitably across the bank. This enables the creation of (isolated) internal P&Ls for diff erent departments. Hence, funds transfer pricing (FTP) helps management to measure… read more

Reform in the OTC derivatives market

How to value a cross-currency swap

Since the first transaction in 1981 between the World Bank and IBM, the market of cross-currency swaps has grown rapidly. It represents, according to the Bank of International Settlements, an outstanding notional amount of USD 16,347 billion as per June 2010.… read more

How do you value a credit default swap?

Warren Buffet once called these products 'weapons of mass destruction', how do credit default swaps work?

Multi-billionaire Warren Buffet once called these products 'weapons of mass destruction', because he thought they were partly responsible for causing the credit crunch. Despite this remark, there is still a buoyant trade in credit default swaps. Here we discuss how they… read more

Mortage interest

Abolition of tax relief on mortgage interest: a risk or an opportunity?

A discussion has been raging for years in the Netherlands about making cuts in tax relief on mortgage interest, but so far moves to alter the system have come to nothing. But this look set to change. The tax relief on… read more

Value for valuation

The importance of determining the value of liabilities is increasing

When the financial world talks about market value, it usually concerns the asset side of the balance sheet. Asset managers are constantly determining the value of shares and bonds.

In turn, banks specialize in determining the value of loans and mortgages.… read more