Auction Rate Securities Valuation Services
Auction rate securities (ARS) are debt instruments in which long-term maturities are structured with short-term holding periods. Traditionally considered as highly liquid cash equivalents, auction rate securities had become increasingly attractive to issuers seeking the low cost and flexibility of variable rate debt, with the frequent interest rate resets giving the security a risk-profile similar to a shorter-term security.
However, recent instability in the credit markets have been responsible for unprecedented auction failures, and as a result, corporate investors and brokerage companies unable to liquidate these securities are realizing the need to determine the value of these securities for the purposes of financial reporting. As auditors continue to place such instruments under scrutiny and the call for transparency for investors grows louder, it has become clear that independent determination of value of these securities is now required.
Mercer Capital aids clients in the valuation of auction rate securities and other illiquid complex securities. For over 25 years, our professionals have developed a reputation for solving the most sophisticated financial issues. Rely on the expertise of Mercer Capital.
However, recent instability in the credit markets have been responsible for unprecedented auction failures, and as a result, corporate investors and brokerage companies unable to liquidate these securities are realizing the need to determine the value of these securities for the purposes of financial reporting. As auditors continue to place such instruments under scrutiny and the call for transparency for investors grows louder, it has become clear that independent determination of value of these securities is now required.
Mercer Capital aids clients in the valuation of auction rate securities and other illiquid complex securities. For over 25 years, our professionals have developed a reputation for solving the most sophisticated financial issues. Rely on the expertise of Mercer Capital.
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