The financial crisis and the resulting loss of liquidity in many markets has made it much harder to ascertain the fair value of certain illiquid instruments, according to John McCann, managing director at Trinity Fund Administrators.
He points to exotic derivatives traded in the over-the-counter markets to illustrate his point. "With some of these derivatives the only market you have in terms of price is between the banks themselves. When that market dries up and there is limited or no volume ac
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