Why illiquid instruments need no longer leave investors high and dry
Standard & Poor's Peter Jones discusses the sine qua non of best practice when evaluating and pricing illiquid instruments such as hard-to-value bonds
Around 20% of hedge fund assets are hard-to-value securities, according to a 2004 Alternative Investment Management Association survey.
For any institutional investor looking to invest in hedge funds, obtaining independent and fair valuations of assets needs to be at the top of their agenda. It is no wonder that regulators are now focusing on this area and hedge fund managers need to ensure that they are able to meet the requirements of an increasingly institutionalised marketplace that demands
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