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Services
Valuation
Valuation
Service
Valuation is our core business. For decades, Value & Risk has shaped the valuation industry standards, incorporating the latest regulatory requirements, the best valuation methodologies and the latest technology to support the process, ensuring efficiency, quality and client satisfaction.
Coverage
The Value & Risk service provides valuation of any financial asset type currently available on the market.
Methodology and technology
We leverage our proprietary valuation models, powered by cutting-edge technology and aligned with regulatory standards.
Highly flexible INTERFACE
Our system is compatible with the majority of financial industry standard systems for position and market data, ensuring timely and flexible setup.
Fully supported
We provide our clients with comprehensive support throughout the valuation process, including initial onboarding, assistance with pricing challenges, and audit assistance, among other services.
Coverage
Highlights
Our services cover a comprehensive range of asset classes currently available in the market. The following list provides an illustrative overview of commonly valued instruments. We can confidently assure you that we have the expertise to value almost any instrument in the market today, even if it is not included in the list below.
Intertest Rate Derivatives
Vanilla Swap
Range Accrual Swap
Cross-Currency Swap
Index Amortizing Swap
Basis Swap
Equity Basket Swaps
CMS Swap
Variance Swaps
Total Return Swap
Volatility Swaps
Equity Linked Swap
COVERED FEATURES
Cap/Floor/Collar
Fix-to-Float
Callable
Step-Up
Puttable
OIS Discounting
Swaption
Brazilian Swaps
Sinkable
Mexican Swaps
CROSS-CURRENCY SWAP TYPES
Fixed-Float
Float-Float
Fixed-Fixed
INTEREST RATE UNDERLYINGS
Fix
CMS
Float (Libor, OIS)
CMS-Spread
Equity Derivatives
Equity Tracker
Options
Futures
Baskets / Total Return Strategies
Credit Derivatives
Credit Default Swap
CDS Tranches
Credit Default Swaption
CDS Basket
CDS Indices
Money/Forex Markets
FX-Forward
FX-Swap
FX-Outright
FX-Option
Forward Rate Agreement
Hybrids
Convertibles
Coco-Bonds
Commodity
Futures
Baskets/Total Return Strategies
Options
Inflation
Inflation Linked Bonds
Cap/Floor (ZC)
Zero Coupons (ZC)
Cap/Floor (YoY)
Year-on-Year (YoY)
Bonds
Corporate Bonds
Emerging Market Bonds
Financials
Defaulted Bonds
Pfandbriefe
Danish Mortgage Bonds
Callable Bonds
Inflation Linked Bonds
Puttable Bonds
Credit Linked Bonds
Agencies
FRN
Municipals
CMS-Bonds
Jumbos
Mezzanine
Sovereigns
Genussscheine
Dual Currency Bonds
Hybrids
Convertibles
Coco-Bonds
Structured Finance
ABS
CMBS
CLO
Synthetic Single Tranche CDOs
CMO
Cashflow CDOs
MBS
CDO – Squared
RMBS
Loans
REAL ESTATE
1st Lien Loans, 2nd Lien Loans
Mezzanine Loans
Bridge Financing
CORPORATE FINANCE
Schuldschein SSD/NSV
Subordinated Corporate Loans
Syndicated Loans
Equity-Trigger Mezzanine
Senior Corporate Loans
INFRASTRUCTURE
Project-Finance
1st Lien Loans, 2nd Lien Loans
Renewable Energy Finance
Seed Capital Loans
SHIP-/AIRPLANE FINANCING
Lease Financing
1st Lien Loans, 2nd Lien Loans
SPECIAL FINANCE
Non-Performing Loans
Tier 1 Capital
Defaulted Bonds/Loans
UT 2 Capital
Microfinance
LT 2 Capital
AIF
Energy
Real Estate
Infrastructure
Equity
Private Equity
Equity Mezzanine
Corporate Equity
Venture Capital/Pre-IPO
Certificates
Delta-1 Certificates
Outperformance
Structured Certificates
Guarantee
Discount
Airbag
Sprint
Basket
Express
Knock Out / In
Participation
Factor
Bonus / Reverse Bonus / Capped Bonus
Alpha
Reverse Convertible
Warrants
Commodity
Spots
Options
Futures
Baskets / Total Return Strategies
Alternative
Investments
Renewable Energy
The valuation of renewable energy projects, such as investments in solar and/or wind farms, essentially requires the quantification of external risk factors, including but not limited to:
Energy feed-in
Captured electricity price
Costs and taxation
Discounting
Value & Risk has developed a proprietary model that effectively captures all relevant risk factors and considers the potential for subordination in the disbursement of financing tranches.
Real Estate Financing
The financial valuation of mezzanine financing of real estate projects is a crucial aspect of real estate portfolio management. It encompasses the analysis of existing properties and property development with estimation of the discount rate using Call-Spread model:
Calculation of the Residual Value relationship
Analysis of the Loan to Value relationship
Calculation of risk measures, including expected loss and recovery rate
Value & Risk has developed a proprietary model that effectively maps all relevant risk factors and offers flexible set-up options tailored to the requirements of the financing tranches.
Private DEBT
In recent years, private debt has become an important investment vehicle for investors. For investors and investee companies, private debt is an excellent way to achieve their return and growth objectives.
Valuing private debt can be challenging. The complexity depends on both the terms negotiated and the credit quality of the borrower.
Valuing private debt can be challenging. The complexity depends on both the terms negotiated and the credit quality of the borrower.
Asset Coverage
Value & Risk covers a wide range of private debt instruments, from standard to highly complex debt investments. Examples include:
Infrastructure loans
Asset-based lending
Renewable energy financing
Valuation framework
We generally use industry best practice to value private debt investments. Depending on the complexity of the instrument, we would analyse the credit risk of the instrument, its market risk and its cash flow structure. We would then use an adjusted cash flow methodology to simulate future cashflows, adjusted where appropriate for options or other factors that may affect the price of the instrument.
Private
Equity
In recent years, private equity has emerged as one of the fastest growing investment categories in the global financial landscape. This investment in non-traded equity presents a significant challenge from a valuation perspective. To ensure an accurate and independent valuation, it is essential to identify risk drivers and validate business plans and financial statements. Value & Risk has extensive experience in the ongoing valuation of this asset class, facilitating a robust and independent valuation process.
Cashflow pricing method
The DCF method is used when the company being valued generates positive cash flows from its operations over a long period of time. The enterprise value is determined by calculating the present value of the expected cash flows.The discount rate is derived from a peer group of comparable companies.
Peer group method
If the target company has an operating business or a plausible business plan, the peer group-based valuation method can be used. The key assumption is that the business will continue to operate. In the peer group method, the share price of the target company is calculated on the basis of the share prices of comparable companies using multiples based on financial ratios.
Net asset value
If the company cannot be valued using other methods, the valuation may be based on the intrinsic value of the company. This is the case where the available historical financial information is predominantly negative or incomplete and there is no plausible business plan. The basis of this approach is the adjustment of the book value.
