Monday - Friday: 9:30AM - 07:00PM
FinServ PartnersFinServ PartnersFinServ Partners
(Monday - Friday)
Patia, Bhubaneswar, Odisha - 751017, India
FinServ PartnersFinServ PartnersFinServ Partners

Complex Securities Valuation (ASC 815)

Complex Securities Valuation (ASC 815)

Complex securities have unique financial features than traditional securities and are closely linked to equity and/or debt instruments. Many complex securities include features that alter payouts over the life of the security, such as options, return multiples, and price performance targets. Such types of securities are often issued in association with incentive compensation, capital raises, and other financial activities. Examples of complex securities include – Equity options, Warrants, Interest rate swaps, Credit derivatives, Convertible bonds, callable and puttable bonds, etc.

Corporate executives are responsible for appropriately valuing complex securities for audit, financial reporting, and tax-related purposes. Appropriate fair valuation of such instruments provides greater insights into the risk of a business and helps various stakeholders make better informed economic decisions.

 

Following are the most widely used method to determine fair values for Complex securities:

Lattice Model: Complex instruments with the “Early exercise” feature are more suited to be valued using lattice models. Lattice models are discrete valuation models which may include a binomial or trinomial model.

Black Scholes Merton (BSM) Model: BSM closed-form form model is most suitable for European-type options. It is relatively easier to perform valuations using BSM than the other approaches.

Monte Carlo Simulation (MCS): MCS is also widely used to perform complex securities valuation. MCS is the most complex but provides the greatest flexibility to incorporate various features of target securities. MCS is the most preferred method for path-dependent instruments such as mortgage-backed securities (MBS).

Contact us today!

    Address

    • Suite - 210, B Block, Nature's Crest, Patia, Bhubaneswar, Odisha - 751017, India
    • India #: (+91) 674-358-1502
      US #: (+1) 585-577-7716
    • [email protected]
    Best Quality Service Competitive Price Quick Turnaround Reliable & Dependable Super Support

    Quality is our first priority. We always provide our clients with world-class services with a 99.99% quality guarantee and keep improving the process. Our quality checking process pass-through a 3-step checking process, reducing the error chance to zero percent.

    Our process improvement continuously checks for model and report upgradation, change or application of new industry or legal rules in the valuation and analysis process. Our existing clients are very much satisfied with our quality services.

    We work on a low-price model without compromising the quality of the work. We have a talented pool of MBA, CVA, CPA, CFA and other finance, accounting, and economics graduates to maintain the quality.

    Since we operate from India, we benefit from the labour arbitrage and pass the same befit to our clients by providing quality services at 60-70% less than their in-house operating cost.

    We always try to deliver projects as soon as possible after all required work and quality checks are done.

    As soon as we receive a project request from the client, we add that to our project pipeline and set the final deadline. Then we review and request the missing documents/data from the client. In the meantime, our operation manager assigns respective tasks to respective analysts based on their competencies and sets a deadline for each. After the completion, the QC team takes over the project and checks for errors in 2-3 steps. After confirmation, our managing director quickly looks at the project and then delivers it to the client before the final deadline.

    We are a reliable and trusted offshoring partner for the client. We sign the NDA and NCA when a contract is finalised between the client and us. We work for the client's best interest in a very transparent way, for which clients rely and depend on us for their part/whole process for the long term without any confusion.

    We provide our endless dedicated support to our clients 24/7, whether related to a project, pricing, time or audit support. This is why clients have loved to partner with us for a long time. We provide support via online video meetings like zoom or Microsoft teams or skype, voice calls, Whatsapp and our online chat agent on our website.

    Clients Testimonials

    Few appreciation and motivation from our clients for our best quality and timely work!

    Subscribe to our newsletter

    Sign up to receive latest news, updates, promotions, and special offers delivered directly to your inbox.
    No, thanks