Interested in
the Valuation Desk?
Get in touch with Pierre Wernert or Gerbert van Grootheest for more information about the Valuation Desk.
Zanders’ Valuation Desk exercises the best market practice, providing independent, high quality services, while ensuring compliance with accounting standards.
We hold a proven track record of successfully executing a broad range of services, including the valuation of financial instruments, hedge accounting, the pricing for purchase and sale of derivatives, the implementation of valuation frameworks, and the calculation of margin calls. We also offer trainings on various valuation-related topics.
independent valuations
The complexity of financial products, the sheer lack of direct market quotes, and constantly evolving accounting regulations, together give rise to difficulties in accurate product pricing. Zanders’ Valuation Desk provides accuracy and certainty by providing reliable independent valuations, periodically or on an ad-hoc basis.
We ensure professionalism throughout our valuations, thoroughly carrying out strict, complete and automated checks on the market data we use daily. Furthermore, we have increased our independence by implementing the F3 solution from FINCAD in our current internal valuation models. This permits us to value a large range of financial instruments with a high level of quality, accuracy and wider complexity.
Our experienced consultants value numerous financial instruments, including:
We perform valuations with the best market practice, fully adhering to standard accounting regulations, such as IFRS 13, RJ 290 and Solvency II. For example, our consultants are experienced in calculating the Credit Value Adjustment (CVA) and Debit Value Adjustment (DVA) of the most complex products.
Our valuation results are compiled and summarized in a clearly written report including an explanation of the results, assumptions and underlying market data. We offer flexible support and are available to answer any questions, additional requests and subsequent alignment with auditors.
In uncertain times, with high market volatility, it is imperative to have a well-defined hedge accounting process and flawless execution. The hedge effectiveness of the hedge accounting relationship may be compromised, or the hedged exposure may disappear resulting in an immediate P&L effect. By taking control of these issues, you can focus on what is really important for your operation!
Hedge accounting provides the alignment of the accounting treatment of your hedged item with the hedging instrument. Hedge accounting can be applied subject to compliance with the requirements set out in IFRS 9/IAS 39, RJ 290 or ASC 815. Adhering to these requirements can be complicated and challenging. Furthermore, the introduction of IFRS 9 has led to some changes in the hedge accounting requirements. Read more about these changes in this article.
The Valuation Desk is experienced with hedge accounting for a variety of hedge relations, ranging from the most common interest rate hedges to complex commodity hedges. We can assist on all phases of the hedge accounting process, such as:
By incorporating our expertise in derivative valuations, we deliver accurate, reliable calculations to prove the effectiveness of the hedges implemented. Our hedge effectiveness calculations are approved by accounting firms.
other valuation service
Product advisory: To help our clients to maintain a portfolio that meets their needs, we offer support with respect to the pricing, purchase and sale of derivatives. Additionally, Zanders’ valuation desk offers a holistic service, as we assist in analyzing and restructuring client portfolios, as well as follow-up advice for negotiations with third parties and the verification of provided quotes.
Valuation framework: Zanders has extensive knowledge and experience of the implementation and validation of client-specific valuation frameworks. Our support includes sensitivity and scenario analysis as well as implementing automated regulatory valuation reports for mortgages and structured products.
Model validation: Zanders’ Valuation Desk is experienced in the validation of valuation frameworks. More information on our model validation procedures can be found here.
Calculation of margin calls: Due to our expertise in derivatives valuation, Zanders can verify if the threshold for financial instruments’ collateral has been exceeded. With knowledge of regulations surrounding ISDA/CSA, EMIR and CCP, we offer support in the correct collateral calculation and margin calls.
Training: We offer training sessions on the valuation of financial instruments, on regulations, the best market practice and financial reports. Please contact us for more information about our training opportunities.
track record
We assisted an international marine expert with:
An international bicycle manufacture asked us for help with:
We support a European-based construction company by:
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The Financial Conduct Authority (FCA) ensured bank panels support LIBOR, and this is coming to a close at the end of 2021. Currently more than 80% of CHF loans are priced with the CHF LIBOR as a basis...
The Swiss Average Rate Overnight (SARON) is expected to replace CHF LIBOR by the end of 2021. The transition to this new reference rate includes debates concerning the alternative methodologies for co...
The Swiss Average Rate Overnight (SARON) is expected to replace CHF LIBOR by the end of 2021. The transition to this new reference rate includes debates concerning the alternative methodologies for co...
The Swiss Average Rate Overnight (SARON) is expected to replace CHF LIBOR by the end of 2021. The transition to this new reference rate includes debates concerning the alternative methodologies for co...
The Financial Conduct Authority (FCA) will stop supporting LIBOR from the end of 2021, while more than 80% of CHF loans are currently priced based on the CHF LIBOR. According to the Swiss National Wor...
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