MARK TO MODEL
A strategy of calculating the price a certain investment position or portfolio, based on internal assumptions or the result of financial models. Different from the traditional mark-to-market valuations, assets must not have a regular market price which provide accurate pricing, or its valuations count on a complex set of reference variables and time frames. Guesswork and assumptions should be used in order to assign the value of an asset.
Usually, these are derivative contracts or securitized cash flow instruments, and most of it has no liquid trading markets. Mark-to-model assets are open for interpretation and can generate risks for investors.
POPULAR TERMS
Maximum Loan-to-Value Ratio
Maximum allowable ratio of a loan’s size to the property’s value that is securing the loan. Lenders measure the risk using loan-to-valu ...
Cash Return on Assets Ratio
Ratio used to differentiate a business’ performance against other industry members. The company’s analysts may use the ratio internally ...
Retention Bonus
A reward given to an employee that serves as an incentive to keep that key employee on the job during a significant business cycle, like a merger o ...
Infrastructure
Basic physical systems of a business or country such as roads, utilities, transportation, communication, sewage, and water and electric systems, am ...
Cost Control
Act of managing and/or reducing business expenditures done by determining the costs and evaluating if such expenses are affordable and reasonable. ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Student Loans: Repayment in Times of Financial Difficulty
One day, you are in the middle of a financial hardship. Unfortunately, you still have student loans to pay. What will you do? In times like these, ...
Ethical Investing: Looking Into Ethical Investments
For studying socially responsible investments, the key word is ethics, of course.
View every corporate webs ...
Ethical Investing: Corporate Governance
It is important for ethical investors to determine how companies manage themselves and their relations with investors and stakeholders.
< ...
What is the Standard Moving Cost?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less ...
Digesting Financial Statements: Earnings
For assessing how a company performed in a given period, the relation between income and cash flow statements should be taken into account. Several ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 05:00 | Credit Card Spending | Mar | |
| 14:30 | Industrial Product Price Index | Mar | |
| 14:30 | New Housing Price Index | Mar | |
| 14:30 | Raw Materials Price Index | Mar | |
| 16:00 | Consumer Confidence | Apr | |
| 02:30 | PMI Manufacturing | Apr | |
| 02:30 | Tertiary Industry Index | Apr | |
| 02:30 | PMI Composite | Apr | |
| 08:00 | Public Sector Net Borrowing | Mar |
